Selecting an appropriate Blockchain. Why you should use CSC
Interest in blockchain technology has exploded over the past several years. Distributed ledger technology is capable of solving many of the issues emerging from our increasingly connected society, as well as addressing real-world business concerns. As the market around blockchain continues to grow, a range of different distributed ledger technologies are becoming available for enterprise users to apply blockchain. When looking at your options, it is important to note that certain protocols are suited to certain use cases, and time-to-value can be accelerated by leveraging existing networks that already exist. Here we’ll look at some factors to consider when selecting a blockchain.
- Blockchains come in many flavors. Some are centralized, meaning a single authority controls the network and the information that’s available to regular users. Others are decentralized, meaning that work and data is shared across the entire network. There are even hybrid solutions, in which a centralized subchain connects to a decentralized main network. One of the key attributes of blockchain technology is decentralization, if your application is promoting business transparency and trustlessness, you will want to have the appropriate data stored on a public chain so it can be easily and verifiably accessed.
CoinEx Smart Chain — CSC is a smart contract chain that offers full decentralization.
- Is the Technology easy to use ?
Perhaps one of the most critical aspects of a blockchain technology is the ability to configure the technology for an enterprise use-case.
Key features such as consensus, permissions and database, should be modular to the needs of a specific use case. Many blockchain technologies struggle to support needed levels of modularity and therefore have to rely on bulky consensus protocols like proof of work in order to scale. Even worse, making changes to these aspects of the network even when used for a private network may require complex development processes to adapt.
Distributed ledgers are referred to as trustless because the burden of establishing the trustworthiness of a counterparty in a transaction is abstracted away from use using complex mathematics.
In reality, though, trust is still invested; it’s just in a technological system rather than in a human being.
The implication, then, is that distributed systems must be designed to provide enough benefit to their users, while maintaining a relatively fair and untampered track record, until it’s worth the risk to the user.
With proof-of-work, the collective confidence that no party could outwit the mathematical search for a prime number on a classical computer is so high, there is virtually no need for trust at all and virtually no risk to the miners.
Proof-of-stake consensus requires users to risk money in order to participate. This risked ante disincentivizes miners from tampering with or otherwise devaluing the system. As a reward for their risk, they earn a slow trickle of interest from the system. In proof-of-stake systems, this is typically where all of the cryptocurrency originates.
All of this is becoming increasingly varied and complex as new consensus protocols are still being developed.
CoinEx Smart Chain — CSC adopts CPOS consensus protocol and is fully compatible with EVM on support for high performance transactions.
After rigorous investigation and research, CoinEx Team adheres to the principle of decentralization and combines the characteristics of POS with POA to realize CPOS, without losing network stability and security. The features of CPOS are as follows:
- Blocks are generated with a maximum of 101 validator nodes.
- Validators take turns to generate blocks. When the validator node produce blocks normally, the difficulty is 2; when the validator node do not produce blocks in a predetermined order, the difficulty is reduced to 1; when the block forks, the chain with the greatest difficulty will be systematically selected.
- Anyone can stake for their trusted validator.
- Scalability — Distributed ledger technologies must be able to scale as the network grows in terms of both transactions and participants. Things such as centralized validation services and complex peer compiling processes have a high likelihood of limiting scale. CSC adheres to the principle of decentralization and permission-free so that anyone can become a validator by staking CET
Anyone can become a validator by staking CET without any permission.
- Regulatory risk — One of the biggest open questions in the blockchain space is the regulatory perspective on cryptocurrencies as an application of distributed ledger technology. Due consideration should be given to the likelihood of regulatory action on protocols supporting public cryptocurrencies. CoinEx has established a complete industry ecological layout around crypto issuance, circulation, application and value discovery.
- Skills availability — The blockchain space has seen a number of high profile data and asset breaches due to the immaturity of new programming languages. Enterprise users should leverage distributed ledger technologies which enable their developers to work with tools and programming languages they are already familiar with. CSC
- Support — Like any enterprise application, there needs to be an appropriate level of support for the entire stack. Whether through open source communities or platform and solution providers, support is needed from the build to production phases of adoption. With the release of CSC Ecological Supportive Plan by CoinEx Smart Chain Foundation, we encourage developers to create their own DApps on CSC and guarantee multi-dimensional support in funding, tech, market and other resources for quality projects.
- Data Protection
Sometimes, your users will want to show that they have the correct private information but not share the actual data.
To prove that data exists but not reveal it, you can use a cryptographic hash to create a unique tag for that data. Cryptographic hashes are one-way streets; you can easily use the data to recreate a hash, but you cannot use a hash to recreate the data. Anyone else with that data can use the same algorithm to generate the same hash, and comparing hashes can tell you that you share the same information. Placing hash tags on the blockchain reliably and cost-effectively tells the world that you have a specific set of data without revealing what the data is.
- It’s common for people in the industry to conflate “blockchains” and “cryptocurrencies.”
Cryptocurrencies are protocols running on top of complex distributed databases that allow us to establish finite supply in a digital space; in other words, they cannot be copied and pasted and therefore can retain value.
Historically, most cryptocurrencies have been built on top of blockchains or other distributed ledger architectures, like DAGs.
These definitions get especially blurry for the casual user because some blockchains are dedicated exclusively to maintaining a cryptocurrency and nothing else, while cryptocurrencies like CET can serve both as a store of value and as a sort of “cryptographic fuel” that allows users to purchase computing capacity spread throughout the CSC network. In other words, the value of CSC is both a product of perception.
For your blockchain project to be highly useable, it’s important that it’s as “generalizable” as possible. The platform chosen will determine what kind of hardware is necessary to use the system, or if a given user will be at an advantage due to his of her hashing capabilities. Generalizable systems don’t require highly specific hardware, nor do they require lengthy amounts of training and education to become useful.
CSC is compatible with all type of devices and hardware.
It should be clear that there is a wide range of possibilities in the distributed ledger space. We are at the tipping point of a new age in finance and human organization, and while much of the territory is uncharted, the promise of blockchain technology has never been clearer.
Whether its conducting proofs of concept on a range of technologies or even just trying out basic developer tools, getting hands-on with blockchain is the best first step to adopting the technology.
When considering a distributed application or protocol, remember to first define the privacy, scale, economics, and accessibility as we have discussed. CSC offers all these characteristics and even more. It serves as a highly efficient smart chain to build on.
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