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How CUDOS is dealing with the Blockchain Trilemma

You may have heard the phrase “Blockchain Trilemma” being thrown around in the community but it’s meaning isn’t exactly obvious at first glance. So let’s break it down!

Scalability, Security, Decentralization, the three golden points in the trilemma. If any one of these points is missing from a blockchain project, then it collapses. Let’s take a deeper dive into what these actually mean and how we are tackling these points within our own project.

In a nutshell, Decentralization is the process by which the activities of a group or organization, particularly those regarding decision making, are distributed or delegated away from one central point of authority location or group.

Remaining decentralized is something that a lot of crypto projects seem to struggle with. Many projects manage to create protocols that are decentralized up until a certain point and let’s be honest, partial decentralization is not real decentralization. So how are we keeping the CUDOS network fully decentralized?

The CUDOS network will be run by validator nodes integrating with blockchain smart contracts. Initially, CUDOS will support Ethereum and Algorand, where developers for either protocol will be able to access off-chain computing power (on the Cudo platform) through the decentralized layer 2 oracle a.k.a the CUDOS Validator Network (CVN). Consensus is achieved via the CVN, thus removing any decision making from a central point of authority or group.

Now I don’t think I need to explain what security means, but in the context of a blockchain project security means secure smart contracts, and networks that keep all participants safe from hackers and leaks. Let’s get into how we’ve taken every precaution to ensure the security of our users and network participants.

So, the approved validator nodes on the CVN will be either a datacentre hosted virtual machine or an approved Sapphire EP10 server with AMD EPYC processors. EPYC processors have been selected because of their memory encryption technology, SEV. CUDOS can therefore offer blockchain developers with guaranteed encryption of their data over the CVN at the hardware level. The CUDOS smart contracts for managing payments and job distribution are also 3rd party audited to confirm they meet security compliance and governance.

Scalability in the crypto space refers to how well blockchain networks can handle transactions “Proof of Work” based cryptocurrencies have poor network throughput. Bitcoin handles about 7 transactions per second, Ethereum about 12 transactions. The crypto community came face to face with the issues surrounding scalability when the Ethereum network crashed during the expansion of the Cryptokitties blockchain game.

Scalability is a massive talking point in the crypto community, and for good reason. If the goal in the crypto space is the mainstream adoption of this technology we all love so much, it needs to be ready to handle as many users as companies like Paypal. So how are we solving this issue here at CUDOS?

The underlying Cudo platform already boasts a distributed computing base of over 20,000 active nodes in over 145 countries. This includes enterprise and always-on environments such as data centres and mining farms along with consumer edge devices such as gaming PCs. CUDOS acts as a layer 2 network providing compute to the layer 1, but also forming a bridge between blockchain (layer 1) and the off-chain Cudo platform (layer 3) to grant access to further compute resources, thus removing the scaling and cost issues associated with computing. directly on a layer 1 blockchain protocol, whilst still retaining the benefits of provability and immutability of core data on the blockchain.

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Cudos is powering the metaverse through cloud computing bringing together DeFi, NFTs, and gaming experiences to realise the vision of a decentralised Web 3.0, enabling all users to benefit from the growth of the network.

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