MOLD aims for “The Decentralized Game Platform for The Next Generation” based on our original Blockchain. Blockchain, which is used as the basic technology of Bitcoin, resolve the common issues in a centralized authority, such as high cost, inefficiencies and safety issues of electronic incentive structures. Nowadays, a lot of blockchain project has built and its technology progress every day. At this time, we should note that Blockchain has several types and each of them has pro and cons and bunch of characteristics. In this article, get insight about existed Blockchain in order to clarify what kind of features MOLD Blockchain should have.
Table of Contents
- Difference between Public, Private and Consortium
- Blockchain Trilemma
- Comparison Consensus Algorism
- The reason MOLD introduces Blockchain
1. Difference Between Public, Private, Consortium
We can classify Blockchain into following 3 types by how validators participate in the network.
・Public Chain
・Private Chain
・Consortium Chain
These are classified by the way of election of validators of blocks and algorism of it. Before the detail analysis of each characteristics of them, you can check briefly the summary from the following table.
1–1. Public Chain
Public chain does not need any centralized organization. By the consensus algorism such as PoW used in Bitcoin network, Public chain become quite a new system which make it possible to eliminates all the risks of injustice of centralized administrator and commission fee gained by administrator. Network can maintain correct transactions trustless and permissionless. As Bitcoin adopts Public Chain, without centralize management through server realize Zero downtime and still produce blocks continuously even though the situation of excessive access.
However, especially PoW costs a lot because it needs huge amount of electric power for proof of computing power. Also, although everyone can join Bitcoin network, it takes 10 minutes to create blocks which is useless in most of real trade. No finality, and tampering is possible by gathering 51% of computing power of the network.
IBM | Blockchain Explained
https://www.slideshare.net/DiegoDiaz49/1-ibm-blockchain-explained
1–2. Private Chain
This is a Blockchain which is administrated by a certain centralized organization. This one centralized organization records and manages ledger. Transaction history has both opened public form and private form. Centralized administrator can arbitrarily delete past transaction and change account balance. (For company side, this is advantage because they can flexibly correspond to situations, however, the existence of risks of tampering possibility means that it is no longer not the new system compared with existed one.)
Also, in private chain, validator can be trusted and it has no necessity to give economic incentive by consensus algorism. Therefore, transaction throughput improves so fast that TPS become more than 100,000. Costs such as time to finality and electric power are also less.
Even though, the characteristics of Blockchain itself is not appropriate for search, analysis and administration of huge amount of data compared to existed database system. Although Blockchain has tamper resistance by default and has several advantages from security side, it is still unmatured in security when added the aspect of surrounding environment and outside application. This kind of discussion is active and we hope it will improve in the future, however, Non-centralized Private chain may be inferior to existed database in efficiency at this time.
1–3. Consortium Chain
Consortium Blockchain is the one make consensus between several high-trusted nodes. HyperLedger Fabric provided by IBM is also the one adopted Consortium type Blockchain and realizes fast transaction validation by “PBFT (Practical Byzantine Fault Tolerance)” ; a consensus algorism in which transactions are validated by most agrees of nodes trusted.
As well as Private chain, Consortium chain resolve the problem with Public chain such as the huge amount of computing power, the slowness of Transaction processing capacity and no finality. Restricting validators of transactions, hard-fork is unnecessary for updating of protocol of Blockchain. Also, introduction of KYC and a system of partly limitation of information disclosure is possible then these futures are more appropriate for the operation inside some companies or organizations.
On the other side, some would argue that such Private Chain and Consortium Chain should not be defined as Blockchain. They point out that it will finally reach to the same fate of original LAN and WAN introduced by companies in 1990’s which is eventually more or less become obsolete especially with the advent of SAAS in the Web2.
1–4. Summary
Public Chain
Validators are elected from around the world by Consensus Algorism.
Realized Decentralization. High security but slow.
Private Chain
Validator is a certain organization.
Improve the problem of Transaction processing capacity and Finality.
Consortium Chain
Validators are several trusted organizations which are elected.
Improve the problem of Transaction processing capacity and Finality.
2.Blockchain Trilemma
Each Transaction has each advantage and disadvantage and to realize all the advantages is difficult and each characteristic is the relationship of trade-off to some extent. The state when three advantages are impossible at the same time is called Trilemma.
Especially, DSS Trilemma is famous one. This is the idea that Blockchain has Trilemma between Decentralized, Scalability and Safety(DSS).
Adapted and modified from：https://multicoin.capital/2018/02/23/models-scaling-trustless-computation/
(DBP = Decentralization of block production)
2–1. Trilemma of Public Chain
Public Chain is a Blockchain realize decentralization of validator of transactions through consensus algorism. For that reason, it is clear that Public chain has the feature of DBP; Decentralized of block production. Also, Blockchain itself has tamper resistance and fault tolerance. As the confirmation time of block of Bitcoin is 10 minutes, most Public Chain set its block generation time enough and data is stable generally. With the data of transactions accumulated dispersively in nodes all over the world, it has high-security though still has the concern of 51% attack. Incidentally, we don’t consider the security of surrounding environment of blockchain.
On the other hand, It has big problems on the side of efficiency and Scalability. Even Ethereum, whose transaction processing capacity was improved form bitcoin and average block confirming time is about 15 seconds, got stuck with huge amount of transactions at the end of 2017. As Bitcoin needs 60 minutes latency for the payment completion, it is inferior at the point of Scalability.
Therefore, public chain can be classified into the place with Safety and Scalability.
”General Positioning of Public Chain”
However, you should note that the network is monopolized by few miners at the present state of Bitcoin and Ethereum. Also, as part of community hard-forked to Bitcoin Cash and have great influence on the network, current non-centralized system has several faults and discussed overwhelmingly.
2–2. Trilemma of Private Chain
As mentioned, Private Chain is the system improved the problem of Scalability Public Chain has. No consensus algorism, therefore possible to make block-generation time faster. Although it has un-dispersibility of nodes which is issue from one aspect, private chain is safe with blockchain system which has tamper resistance. On one hand, this chain make scalability possible, however, on the other hand, it sacrifices decentralization because its network is administrated by one certain organization as a validator.
”General Positioning of Private Chain”
2–3. Trilemma of Consortium Chain
As well as Private Chain, Consortium Chain is also the system improved the problem of Scalability Public Chain has. It has consensus algorism such as PBFT (Practical Byzantine Fault Tolerance), however, block-generation time is shortened by electing only several trusted validators and data is safe to certain extent with blockchain system which has tamper resistance. Because the network is administrated by several organizations collaboratively, consortium chain has certain decentralized feature compared to private chain.
”General Positioning of Consortium Chain”
2–4. Summary of DSS Trilemma
So far, we have explained each characteristic of Public・Private・Consortium Blockchain classified by 3 different types of consensus building way, with mentioning to DSS Trilemma. Following figure summarizes the comparison of these three.
”Comparison of Public・Private・Consortium Blockchain”
Please note that this notation method of plotting analysis on two-dimensions is essentially wrong because this figure of Trilemma does not express three coordinate axes, however, in this article we have taken this way for easier imagination
2–5. DCS Trilemma
Similar to DSS Trilemma, DCS Trilemma is the idea that three of Decentralization, Consistency and Scalability is in a relation of trade-off. As well as DSS Trilemma, positioning of characteristic of blockchain is classified by which Public・Private・Consortium Blockchain we would introduce. Please refer to origin URL for the details.
3. Comparison of Consensus Algorism
There are several types of consensus algorisms such as PoW and PoS between public and consortium chain which is implemented consensus algorism for no-centralized network.
Not only classification to public・private・consortium, types of consensus algorism make difference of the way to elect validators and then characteristics of each blockchain got change. Please refer to the other article called “Comparison of consensus algorisms” for more detailed and exhaustively explanation.
3–1. Proof of Work
As most people are familiar with, PoW is an algorism used for Bitcoin and nodes can gain the right as validator and miner by proof of computing power under this algorism. Based on game theory, networks and its security is maintained by economic rational behavior of participants. However, some would argue the current monopolized Bitcoin and Ethereum network by the few several miners.
3–2. Proof of Stake
PoS is consensus algorism which will be implemented to Ethereum in the future. In this system, nodes can get right as a validator depending on how much amount they have.
PoS has also several types. For example, Peercoin, which is the first project introduced PoS, has a system that kind of combination of PoW and PoS. Under this algorism, more amount of coin they have and longer coin age it is, the easier difficulty they get and they are more likely to succeed mining easily. As its coin age is reduced when they succeed mining, this system has construction to prevent centralization.
Some argues that it accelerates the gap between rich and poor because a validator with huge amount of coin can earn rewards without any action, which is called Nothing-at-stake problem. In this sense, PoS perhaps threaten decentralized network and become centralized.
3–3. Delegated Proof of Stake
DPoS network elect validator depends of the amount of coin they have and elected several validators approve transactions. Generation of blocks has period and which validator would generate each block is set in advance. For example, there are 21 elected validators by voting system depending on amount of coin in EOS network. 6(blocks/per1) ✖︎ 21(validators) = 126 blocks is one period and validators generate blocks in order. As validators are replaced at the end of one period, the one who doesn’t contribute to the network would be eliminated. This system can be more decentralized essentially compared to PoW and PoS which would become easily centralized by a few miners. Also, as generator of latest block is fixed in advance, block-generation become more smooth.
3–4. PBFT (Practical Byzantine Fault Tolerance)
PBFT is mostly introduced by consortium blockchain like Hyper Ledger Fabric. There is one leader of validator and each participant know all the validators in advance. The leader requests to all the other validators about the order of block-generation and they vote whether they agree to it or not. Then determine the block after checking agreement by majority. This system has finality and determined block never reversed as they make a decision after majority vote.
3–5. Tendermint Consensus
Tendermint Consensus has three steps of Propose・Pre-Vote・Pre-Commit. At Propose step, validators elected by amount of coin take turns of proposal by round-robin system. After more than 2/3 validators vote in both of Pre-Vote and Pre-Commit steps, block is generated for the first time. Validators wait a small amount of time to receive a complete proposal block from the proposer before voting to move to the next round. This reliance on a time out is what makes Tendermint a weakly synchronous protocol. Also, Tendermint introduces a few locking rules to prevent validators from voting more than 1 block on Pre-Commit step at the same time, therefore Tendermint blockchain never forks.
4. The Reason Why MOLD Implement Blockchain
To begin with, we need to discuss what MOLD implement blockchain for so that we can get farther insight about which type of blockchain we should choose. Firstly, we summarize how and what kind of blockchain we need on MOLD gaming platform.
4–1. Features of MOLD from Whitepaper
・Item-tokens as digital assets
MOLD is dedicated to “Building a Second World” in non-centralized virtual space and realize decentralized trading in a game world. Players can own their own items as digital assets and trade them freely then benefits a lot on MOLD platform without limitation and peculiar issues with central control organization. ( Reference : MOLD Whitepaper )On traditional game platform, centralized game administrator companies have ownerships of in-game items. As MOLD introduce blockchain, digital asset on MOLD platform can be managed in decentralized way.
・Secure and Quick Transactions within a Virtual Economy
MOLD gaming platform generates economic zone of Item-tokens in a virtual space detached form game companies because players can tokenize in-game items and hold digital assets there. ( Reference : MOLD Whitepaper )Fast processing of transactions, immediate settlement and high-User Experience is crucial point and would be maintained continuously not only for secure storage of personal digital assets but also for active and free economic activity on gaming space.
・Benefits for game developers
Commission fee for publishing game on MOLD as decentralized platform is of course 0% because MOLD is based on non-centralized system using blockchain. (Reference: MOLD Whitepaper)To improve the situation that developer should pay a lot of publishing fee on traditional platform, MOLD reduce its cost to 0% by introducing decentralized structure. Farther more, as the figure above shows, MOLD prepare for the system that investors and developers can gain profits accurately with transparency thorough smart contract.
4–2. Necessary characteristics for MOLD Blockchain
MOLD, as it is based on blockchain, would realize virtual gaming space that users itself can manage their own digital assets and trade freely and rapidly, also developers more likely to gain profits on decentralized system. For farther functions, you can refer to our Whitepaper. (https://moldproject.org/whitepaper.pdf)
At this time, it is not preferable to adopt centralized network like private blockchain. By using decentralized structure as much as possible, MOLD guarantees User’s digital assets freely lively economic activities and create a system that game developers can gain profits correctly. On the other hand, it is also not preferable to adopt public chain like Bitcoin because it sucrifices rapid transactions and worsens User Experience.
4–3. MOLD Blockchain
Blockchain MOLD implement would be completely Public Chain. To keep decentralized system is the major premise because it is core of MOLD’s vison to generate economic zone between users on decentralized structure.
At the same time, processing capacity and efficiency is also necessary for active and free economic activity between users. Therefore, our network would not allow all nodes to participate in as validators based on PoW system but elect several nodes based on certain algorism such as voting and the amount of coin. Every participant can be a validator with deposit of certain amount of coin to designated place. In short, consensus algorism would be based on PoS.
Therefore, MOLD blockchain would be a public chain in which every node can be a validator with enough number of votes and amount of coin and this network would also be maintained by several nodes which is similar to consortium. Compared to Bitcoin and Ethereum that is administrated by only a few miners, this system would keep decentralized network more. Also, transaction throughput would be faster than existed public chain and can realize immediate settlement which is mandatory feature for gaming.
4–4. MOLD Blockchain Summary
Referring to DSS Trilemma mentioned above, MOLD blockchain would adopt public chain with major premise of non-centralization and design its consensus algorism well for free and active economic zone in a virtual space then solve the scalability problems.
Please note that this notation method of plotting analysis on two-dimensions is essentially wrong because this figure of Trilemma does not express three coordinate axes, however, in this article we have taken this way for easier imagination.
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Cosmos Gaming Hub Project(Former MOLD project)
CEO & Co-Founder
Takumi Asano
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