About the unique Busy blockchain for e-commerce

As I have already mentioned in my previous articles, the Busy technology brings a comprehensive decentralized solution based on its blockchain, to which the Busy decentralized freelance platform will be connected. So the technology itself has two parts and in this article, I am going to write about the Busy blockchain. But to start from the beginning, let me first explain what is the blockchain.

What is blockchain

Blockchain seems complicated, and it certainly can be, but its core concept is really quite simple. A blockchain is an open, distributed database — simply a file with some data/records. The database is replicated across many nodes (i.e. computers) worldwide.

The blockchain network is entirely decentralized.

This means that no person or entity has control over the blockchain; this is a radical change from the centralized databases that are controlled and administered by businesses and other entities.

So how does it work? In very simple words, the file is comprised of blocks of data, with each block being connected to the previous block, forming a chain. Hence the name “blockchain”. As well as the data itself, each block also contains a record of when that block was created or edited, which makes it very useful for maintaining a detailed system of records that cannot be corrupted or lost.

The basic flow is demonstrated also in the image below. Once the transaction is entered, it is broadcasted to all nodes and clustered into blocks. Once the block is completed (e.g. valid), it is chained, locked and a new block is created. All over again.

And how works the Busy blockchain?

There are certainly many technical details about the Busy blockchain technology and as I want to have this article readable by everybody, not just experts, I will sum the technology briefly. If you are sad about that, don’t worry, the full technical description is in Busy’s white paper (here).

Busy proof of stake is similar to the already adopted pure proof of stake with a few specific changes. The Busy technology uses a modified PBFT (Practical Byzantine Fault Tolerance) consensus.

In brief, each user enters an algorithm with a specific and the same number of coins.

This ensures that each user has the same network power and no one is favored. Another feature is a selection of the block validator using the hidden key of the VRF function (Verifiable Random Function), which ensures that each user has the same chance to become a block validator. A new group of validators enters each verification process. This ensures high security and network throughput. Unlike basic proof of stake, each user involved in the ecosystem gets a staking reward, not just those who close the block.

Utility staking

Utility staking is considered to be one of the main engines of the Busy technology and Busy platform, allowing users to occupy slots, and thus the user will actively participate in the development of the entire ecosystem and platform. To ensure that there will be always enough coins throughout the ecosystem, the staking reward in the blockchain will be set to 33% p.a.* from each staking address so that each user will participate in an increasing number of coins.

*) Staking reward is set to 32.7–33.2% p.a. Staking reward is affected by the holding time of the coins, i.e., the time for which the user holds the coins. Each year does not have exactly the same time periods, so staking reward can vary within the given deviations. Entitlement to a staking reward begins to count after the first 60 minutes.

And that is why inflation will not occur at the expense of the user. On the contrary, the user will be rewarded with newly created coins, which he will be able to either use on the platform or sell on exchange and thus will help to ensure sufficient liquidity in the ecosystem.

In the Busy solution, staking will be used for three critical activities:

• the first activity will be the visibility and size of the slot as such on the platform,
• the second activity will be the calculated staking reward, and
• the third activity will be the verification of transactions themselves (proof
  of stake).

Staking is a solution using staking wallets and addresses. The staking limit will be set in each life-cycle phase (see my previous article about the life-cycle phases). The limit will indicate the minimum number of coins required for staking.

Therefore, if the staking limit will be set to 1,000 coins and there will be only 900 coins in the staking address, no staking reward will be obtained in this case, nor will the staking address count to the slot size.

The second alternative is that there will be 3,000 coins in the staking (although the staking limit will be 1,000), and in this case, the staking reward and the slot size will be calculated only 1x (i.e., only from 1,000 coins). To receive three times more coins from the staking reward and increase the slot, you will need to have three staking addresses, each with a minimum of 1,000 coins.

The function is shown in the above image, where the staking limit is set to 1,000 coins (i.e., a minimum of 1,000 coins in the staking address (SA) is required to obtain a staking reward). In the example, there are two SAs, each with 1,000 coins; as a result, the user receives approximately 660 coins (2 x 33% of 1,000 coins). The total amount of coins that will be earned can be counted with a general equation (330 coins = 33% of 1,000 coins) multiplied by the number of active staking addresses.

Conclusion

This is the Busy blockchain in simple words. Again, I need to mention that this article was written in an easy form to be readable by everybody, so if you are curious about more advanced details, check the Busy white paper.

Stay Busy & Join Revolution Today!

If you are interested in the Busy solution, check our website https://www.busy.technology!

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