Requirements for Self-Sustainable Blockchain, Part 5

[About EcoVerse™ AI-DPoC Technology]

1. Introduction

In the previous 4 posts, we talked about what constitutes a self-destructive blockchain, what is necessary to overcome those obstacles, and how a blockchain becomes self-sustainable. There are two reasons why most public blockchains are self-destructive:

First, the unbalanced distribution of wealth — where the rich get richer while the poor remain poor — will lead to a decrease in participant interest and stagnate economic growth. (As mentioned in the last article, most cryptocurrencies, including Bitcoin and Ethereum, possess a 0.99 Gini coefficient, an index of economic inequality. [1])

Second, technology-related issues such as lengthy TFT and TPS prevent the daily use and universal adoption of cryptocurrency. [2] There have been attempts to resolve these problems by reducing the number of nodes for consensus — however this lowers participant motivation and as such, undermines blockchain’s goal for decentralization. So I would like to suggest the following to help blockchain address these challenges, maintain long-term self-sustainability, and increase the value of the ecosystem. [3]

  • Unfair wealth distribution
  • Poor performance
  • Abstraction of decentralized ideology

The following are three development strategies to seamlessly increase value.

  • Establish an environment for daily use of cryptocurrency
  • Mutual cooperation and balanced growth for dApp ecosystem
  • Implementation of self-sustaining governance mechanisms

To solve these problems, EcoVerse™ has developed, under a new paradigm, a consensus model called AI-DPoC and an incentive model called CONFIRM™. In the Part 4 of this series, AI-DPoC’s concepts, governance structures, design, and operational principles were introduced. [1] Now, Part 5 will focus on the technical elements of AI-DPoC.

1. AI-DPoC (Artificial Intelligent-supported Delegated Proof of Contribution) Technology

Consensus algorithms are responsible for two functions in a blockchain. The first is for block formation or validation, and the second is to distribute the generated wealth. AI-DPoC allows AI-based Agents to take charge of functions related to block formation and select representatives at random based on probability distribution, which is dependent on the extent of contributions to the ecosystem. Selected Representatives will be a part of a committee that operates block formation for a set amount of time, and will in turn be rewarded for their contribution. All computing assets involved in “Full Node” block formation are initially funded by the EcoVerse foundation, and after becoming fully established will be transferred to the community. This approach is fundamentally different from other blockchains, where structural problems result in those with superior economic power receiving all the profits.

As AI-based agents, rather than specific nodes with high computing power, form blocks, the need for compensation and problems concerning wealth distribution are eliminated. AI-DPoC will solve three problems:

  • Wealth distribution inequality
  • Damage to the ideology of decentralization
  • Daily usability issues

The first two are resolved by the agent who voluntarily transfers block formation, ownership and operational rights of system resources to the EcoVerse™ community. This leaves the issue of achieving the goal of cryptocurrency usage on a daily basis.

2.1. AI-DPoC Network Design

The usual issues associated with blockchain performance are those of block formation times and transaction confirmation times, otherwise known as Scalability and TFT (Transaction Finalization Time). The relevant points of the prominent Mainnets are shown in Table 1:

Table 1 — Main-net Performance Comparison Chart

As you can see here, Bitcoin and Ethereum’s performance is too slow for commercial use of cryptocurrency. One can also say that it is structurally impossible to improve Bitcoin. So while Bitcoin may serve as the icon of the cryptocurrency industry, having been the first of its kind, its performance as a monetary function in day-to-day life is lacking. A variety of mainnets have sought to improve network performance: Ethereum will switch its consensus algorithm from PoW to PoS system, Casper; Riden seeks to reduce network load; Plasma, bookkeeping; Sharding, reducing node burdens; and the list goes on. However, these processes will take a long time to complete and, even if the technology solves the performance problems, the problem of wealth bias remains.

Because the developers of Ethereum could not grasp the concept of blockchain and cryptocurrency as a socioeconomic system, and lacked the insight to see the human desire system on which it is based, cryptocurrency has failed at equal wealth distribution. Public blockchain cannot be approached by just a technical perspective. Currently, EOS is the closest to enabling daily commercial use of cryptocurrency. From the early stages though, the hype generated from BP (Block Producer) selection and the suspected rigging, revealed an already unavoidable wealth distribution bias. Also, for dApps that would like to operate in the EOS ecosystem, to occupy a portion of provided computing power, dApps must purchase and be in possession of the equivalent amount of EOS.

In other words, EOS stake, which corresponds to the percentage of EOS resources intended to be used, should be held based on the total amount issued at the time of the dApp’s installation. As of October 2018, if you only want to use 0.1% of the resources, you would have to be in possession of more than 20 billion EOS. Of course you can sell it later and cash it, but unless you’re a large company, can more than 20 billion in funding be retained from the early stages to run a dApp? While there are ways to minimize the use of mainnet resources through side chains, for poor startups, the requirement to keep EOS stake is definitely too high. EcoVerse solves all of this in one fell swoop by transferring system ownership and operations to AI. By building the best network environment, an environment for daily use will emerge. The objectives that EcoVerse will implement are shown in Table 2.

Table 2 — AI-DPoC Performance

2.3. EcoVerse™ Tokenomics

The EcoVerse™ token economy issues two tokens. First, the ECR token, which serves as a value-saving tool for trading on an external exchange. Second, ECR, is a Stable Coin with a stable value required for use of various services within the ecosystem.

Figure 1. EcoVerse™ Ecosystem

ECX is designed for everyday transactions and can be exchanged for ECR, as shown in the figure above. In this case, the foundation deposits the sum of exchanged ECX corresponding to ECR’s legal value into a bank, ensuring that ECX remains a stable transaction method. ECR is a common cryptocurrency, used to store value, and available for trading on exchanges. ECR uses blockchain to provide a variety of authentication features for dApps, can be used as a trade token instead of the dApp’s token, and may be exchanged internally at a good rate.

Table 3. Two Coins in EcoVerse™

The following table lists the usecases for the two tokens:

In the above manner, EcoVerse™ AI-DPoC addresses the following problems that existing blockchain simply cannot solve: 
 ▶ Unfair wealth distribution
 ▶ Poor performance
 ▶ Abstraction of decentralized ideology

By integrating a new consensus paradigm, AI technology, and democratic governance-based policies, blockchain can now become self-sustainable. The next post will discuss CONFIRM, another new method to address self-sustainability, and a solution to the anticipated decrease in participant motivation when applying AI-DPoC.

This article has been translated from its original Korean text, viewable on Steemit: https://steemit.com/ecoverse/@nicklee002/5

References

1. Younghwan “Nick” Lee. Requirements for Self-Sustainable Blockchain, Part-4 https://steemit.com/ecoverse/@nicklee002/4

2. Nicholas Courtois. “On The Longest Chain Rule and Programmed Self-Destruction of Crypto Currencies”,o https://arxiv.org/abs/1405.0534

3. Younghwan “Nick” Lee. Requirements for Self-Sustainable Blockchain, Part-3 https://steemit.com/ecoverse/@nicklee002/3