Requirements for Self-Sustainable Blockchain, Part 4
#1. Agreement Algorithms and Self-Sustainability Issues
Blockchain is the key to an anonymous, P2P-configured network. That is, a blockchain system is key to operating an anonymous consensus system concerning the distribution of wealth from blockchain mining and creation. The PoW (Proof of Work) consensus method adopted by Bitcoin has a monopoly problem because large mining plants with high-performance computing power are responsible for the bulk of wealth generated within the Bitcoin network. This causes many problems, including both internal hacking as well as a waste of natural resources.
Both Bitcoin and Ethereum are systems with a Gini coefficient of 0.99, which is near “total inequality (1.0)”. This unequal approach to wealth distribution breaks down the network participation incentives, ultimately becomes self-destructive.
Most major mainnets, EOS included, are attempting to make cryptocurrency viable on a daily basis by presenting development goals to dramatically reduce transaction agreement and verification time while referencing Bitcoin and Ethereum’s scalability problems and slow TFT. What happens here is that consensus algorithms such as PoS and DPoS reduce the number of participating nodes to accelerate block creation, verification, and transaction completion. These consensus algorithms, however, only aim at improving performance, while failing to resolve the inherent contradictions in the system. This can only lead to its ruin and self-destruction.
This is actually a difficult problem to solve, because while there are many geniuses present in the blockchain world, there is no quick solution. Like the snake Ouroboros eating its own tail, as one problem is solved, another is arises, creating a never-ending loop.
To further understand this problem, take a look at the DPoS (Delegated Proof of Stake) algorithm, which has been adopted by most mainnets to address scalability issues. DPoS is designed to improve performance by reducing the number of nodes participating in agreement and verification, voting for delegates, and utilizing delegate-operated nodes. While this algorithm appears democratic because a delegate may be replaced at any time, the reality is that the delegate, once elected, rarely changes. In fact, not a single delegate has ever been replaced — so it’s more like one is a lifetime delegate. So while electing a delegate and drastically reducing the number of nodes improves performance, the uneven distribution of wealth will only get worse.
It’s no longer a technology-specific problem to continue to ignore this issue and allow public blockchains to self-destruct. Aware of this challenge, the EcoVerse project was launched to find a solution using AI-DPoC.
#2. AI- DPoC (Artificial Intelligence-supported Delegated Proof of Contribution)
Unequal wealth distribution and the resulting power abuse/complaints arise from the fact that the nodes involved in creating and validating blocks must be compensated. In Proof-of-Work (PoW), to generate wealth one must win the right for block creation through number of miners and hash power, requiring high investment. In other words, this means that individuals with a lot of capital or big groups will create an oligopoly. There is a similar outcome when using Proof-of-Stake (PoS). Here, compensation is allocated to those who already have a large number of shares, so yet again a small number of capital investors can create an oligopoly. It’s an unfair game: everyone can participate, but wealth distribution is centralized.
The current consensus algorithms presented thus far, including PoW, PoS, DPoS, and PoA, only have minor differences. In this playing field, formal reasoning, whatever it may be, is used to help the players with overwhelming economic power gain even more wealth. The more recent a consensus algorithm is, the more it should be able to resolve the uneven wealth distribution problem. Yet ironically, the more recent it is, the closer to inequality it gets.
In the midst of the 2008 global financial crisis, the idea of decentralization, as pioneered by the likes of Bitcoin and Ethereum, became a beacon of light. Yet at the center of it all, behind the rallying cry of decentralization — where anyone can participate — lies the uncomfortable reality that no one is standing at the starting line on equal footing.
The EcoVerse™ team believes that blockchain technology, the so-called 4th industrial revolution, will fail and collapse if this problem is not solved. The following are our conclusions concerning this:
1. To maintain a blockchain, it’s fundamentally impossible to address the computing resources needed to form essential blocks for a general blockchain where a particular node — whether an individual or company — invests its economic power to participate and receive compensation.
2. Second, the EcoVerse team will provide the necessary computing resources for what is called the Full Node, which creates, verifies, and maintains the blockchain.
3. To respond to any criticism about the ideology of blockchain regarding centralization, the EcoVerse team gives ownership of the provided computing resources to the EcoVerse community.
4. The EcoVerse™ community will have a Full Node committee to voluntarily determine policies addressing maintenance and various operational issues regarding the Nodes around the world, which form, verify, and maintain blocks.
5. The processes by which Full Nodes form and validate blocks are carried out by Agents developed based on AI.
6. Each Full Node-operating community member is selected based off a random probability method that measures the member’s contribution to the entire network and chooses among those with a contribution above a given standard.
7. Each selected member is entitled to a certain level of coin compensation in return for serving on the operating community.
8. One third of the operating community is replaced every 6 months.
9. The H/Ws, which operate the Full Node, select and install the best performing locations for internet Hubs around the world.
10. Scalability, transaction completion, and security-related issues are resolved in a distinct way through AI-DPoC to provide the best performance in the world.
The EcoVerse team has found a way to address both the performance problems and inequality of wealth in conventional consensus algorithms — where, from the beginning, structural inconsistencies allowed nodes with higher computing power to take most of the wealth — by volunteering to socialize the means of production. The EcoVerse blockchain ecosystem will offer a self-sustainable solution unlike anything that has been seen before.
In the next post, I will explain the specific algorithms for these methods.
This article has been translated from its original Korean text, viewable on Steemit: https://steemit.com/ecoverse/@nicklee002/4