What Is StrongBlock (STRONG) And How Does It Work? | KuCoin Crypto Gem Observer
The blockchain ecosystem consists of two parts: miners and nodes. Miners are responsible for verifying new transactions and creating blocks to record them on the blockchain. Nodes contain the whole transaction record of the blockchain; they transmit, relay and store decentralized blockchain data.
Miners get rewards for creating blocks, so everyone is very keen on mining. However, there is no system to provide rewards to nodes. StrongBlock is the first and only decentralized platform to reward nodes for supporting the infrastructure of their blockchain.
In this article, KuCoin Crypto Gem Observer will take you on a quick dive into StrongBlock.
Why incentivizes nodes?
With limited resources and no financial incentive, many nodes run out-of-date software, maintain incomplete blockchain histories, and are intermittently off-line. This can directly affect you, as it interferes with timely pricing of cryptocurrencies. There is no easy mechanism to fix this problem once a blockchain is launched.
To solve this, StrongBlock has made it possible for anyone to create a node in seconds — or add their own node — and earn STRONG governance tokens per block. StrongBlock currently supports over 7500 Ethereum 1.0 nodes.
How does StrongBlock work?
First, StrongBlock built a node evaluation system that can identify the best performing nodes in the community and allocate STRONG tokens.
Second, StrongBlock made it possible for anyone to create their own Ethereum 1.0 node in a few seconds with no technical expertise — using its Nodes-as-a-Service (NaaS) platform. This not only incentivizes existing nodes to operate better, it also provides more nodes for the Ethereum 1.0 blockchain, making it stronger.
Currently, only Ethereum 1.0 nodes are eligible for STRONG rewards. Ethereum 2.0 and other protocols will be eligible at a later date.
What is the STRONG token?
STRONG is an ERC-20 token created by StrongBlock, enabling decentralized protocol governance. The original STRONG supply was 10,000,000, of which 9,472,218 was burned in a one-time event in November 2019. The current max supply of STRONG is 521,534.
As part of its protocol, StrongBlock currently burns 10% of the STRONG contributed on a weekly basis for the creation of nodes. To date, over 5% of circulating STRONG has been burned since December 3, 2020, continually reducing the overall supply.
The current STRONG distribution is as follows:
Community STRONG: 322,713.57 (61.877%)
Team and Shareholder STRONG: 198,520.43 (38.064%)
Who created StrongBlock?
David Moss, the co-founder and CEO of StrongBlock, is a blockchain expert, keynote speaker and strategic advisor. He has the distinction of holding two prominent roles in the creation of EOS, the decentralized blockchain operating system: as SVP of Technology Operations at Block.One LLC, leading EOSIO technology development; and as co-leader of the EOS mainnet launch.
Rounding out the executive team are Corey Lederer, Chief Product Officer, and Brian Abramson, Chief Technology Officer. Both held key executive technology positions at Block.one LLC, as well as having worked with Mr. Moss on previous Enterprise projects.
StrongBlock has raised a total of $4 million in a seed round raised in February 2019.
StrongBlock, led by a well-known and highly respected team, is a pioneer in blockchain infrastructure. Their innovations include the STRONG protocol and node reward mechanism which, along with future incentives including NFT tokens, lays the foundation for stronger, more efficient, and economically incentivized blockchain networks. With over 7500 nodes already being incentivized, STRONG is positioned to become a major force in the DeFi space.
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