Eco-friendly and Carbon-free Datamall Chain Powered by ERC-7585
DMC is the utility token used on the Datamall Chain to incentivize decentralized data storage and transactions. Powered by ERC-7585, $DMC extends beyond Datamall Chain itself to embrace multiple chains, including Ethereum.
What is ERC-7585?
ERC-7585 is a novel design of storage proofs on Merkle trees. It allows anyone to verify that some data is stored on any blockchain, using a hashing algorithm called MixHash. This is a form of proof of data storage (PoDS), which is different from proof of storage (PoS), which is a consensus algorithm based on allocating disk space.
PoDS is a useful concept for decentralized data markets, storage, and oracles, as it enhances the security and integrity of outsourced data.
How to interpret ERC-7585?
According to William Entriken, the leader author of ERC721, ERC-7585 provides a novel way of building decentralized consensus that does not rely on expensive computation and energy consumption. It achieves decentralized consensus by storing public data and proving its existence. This means that the network’s trust is maintained by verifying and protecting the data’s integrity, rather than relying on traditional proof of work (PoW) or proof of stake (PoS) mechanisms. This method may be more efficient and eco-friendly, as it reduces the demand for large amounts of computing resources and energy.
ERC-7585 vs Bitcoin
Bitcoin is the first and most popular cryptocurrency that uses PoW as its consensus mechanism. PoW requires miners to solve complex mathematical puzzles to validate transactions and create new blocks. This process consumes a lot of electricity and hurts the environment.
Some people argue that Bitcoin should be banned or regulated because of its environmental harm. Others defend Bitcoin as a valuable innovation that provides financial inclusion, censorship resistance, and sound money
Carbon tokens are a type of digital asset that represents the reduction or removal of greenhouse gas emissions. They are based on the concept of carbon credits, which are certificates that allow the holder to emit a certain amount of carbon dioxide or other greenhouse gases. Carbon tokens aim to incentivize individuals and organizations to reduce their carbon footprint and invest in green projects.
Bitcoin is often seen as the opposite of carbon tokens, as it increases the carbon footprint of its users and miners. However, some Bitcoin proponents claim that Bitcoin can drive the adoption of renewable energy sources, as miners seek cheaper and cleaner electricity.
ERC-7585 vs Ethereum
Ethereum is another popular cryptocurrency that uses both PoW and PoS. PoS is a consensus algorithm that does not require miners to solve puzzles, but instead relies on validators who stake their coins to secure the network. PoS is more energy-efficient and scalable than PoW, but it also has its challenges and trade-offs.
Ethereum is not only a cryptocurrency, but also a platform for smart contracts and decentralized applications (DApps). Ethereum enables developers to create various kinds of DApps, such as decentralized data markets, storage, and oracles, that can benefit from PoDS. ERC-7585 is one example of a proposal that aims to improve the Ethereum ecosystem by introducing a new design for storage proofs.
