TOP Network
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TOP Network

TOP Staking — The next evolution of Proof-of-Stake

Proof-of-Stake (POS) is a consensus mechanism that has recently gained a lot of popularity. With Ethereum 2.0 converting its underlying proof-of-work (POW) system to POS, and OKEx adopting delegated proof-of-stake (DPOS) as its consensus of choice, there is no surprise as to why everyone in the crypto community has been debating about the nuances of staking.

TOP Network uses a special consensus called pBFT-POS*. TOP launched staking in mid-January 2020. In just a few days, the number of tokens staked quickly exceeded 100 million. As of press time, the total number of TOPs joining TOP Staking has surpassed 900 million.

What is POS?

One of the hallmarks of a decentralized, peer-to-peer system is its lack of central authority. However, how can a system that doesn’t have a central board of directors make business-critical decisions? This is where consensus mechanisms come in.

Consensus mechanism is an algorithm that allows a decentralized WAN to make decisions. Bitcoin’s consensus mechanism of choice is POW or proof-of-work. In POW specialized nodes in the network, called miners, own mining equipment called ASICs to solve cryptographically-hard puzzles. If successful, they get to add a block to the Bitcoin chain and receive a block reward in return.

If sufficient miners are present within the system, a POW chain can be extremely safe and secure. In fact, as per calculations, it can take as much as $1.4 billion to hack the Bitcoin blockchain with a successful 51% attack.

However, there are certain issues with the POW system which hinders it from being a sound consensus system:

● Firstly, it is a highly wasteful process, which requires you to spend a lot of computational power.

● It is harmful to the environment. Bitcoin consumes more energy than the entire nation of Switzerland, according to new estimates published by researchers at the University of Cambridge.

● It may not be the best system for smart contract platforms that want to host decentralized applications.

● A small group of influential organizations with access to the majority of the mining ASICs are in charge of the network.

As a result, more and more platforms started looking into the POS system. POS makes the entire mining process virtual. Validators in the network lock up a portion of their tokens as a stake within the ecosystem. Following that, they get to sign off on blocks and receive block rewards in return.

The main advantage of the PoS mechanism is that no mining power is required and the time for reaching consensus is shortened.

For investors participating in Staking mining, they do not need to:

● Invest in expensive mining equipment.

● They do not need to continually watch the market since their tokens will be locked.

● They will have the option to earn passive income easily.

However, traditional staking does have one glaring weakness — it embraces the “rich gets richer” policy. A node that has staked the most amount of money gets the most opportunity to validate blocks and earn money. Unfortunately, this system assumes that a node that has the most “skin in the game” will act the most honestly. However, what if it’s a really rich organization that doesn’t care about the ecosystem’s overall growth? This creates a potential weak point.

At TOP, we wanted to integrate a technique that could mitigate this particular weakness.

What is TOP Staking?

TOP mitigates POS’s traditional weakness with comprehensive staking. Comprehensive staking considers the following four aspects:

● The node must have the basic computational power to join the network and participate in network upkeep.

● The node must have good network capabilities.

● The node must lock up their tokens for a predetermined amount of time.

● The node must have a history of doing credible work and positively contribute to the network.

If all these conditions are met, then and only then will the node be accepted as a TOP validator.

TOP Staking’s earning potential

TOP Staking has huge profit potential. Technically speaking, TOP’s price has currently bottomed out and has been trending horizontally for a long time. Most importantly, even when the price has been trending at its lowest possible level, our single-day trading volume managed to reach 1.6 billion on May 20, a record high in nearly a year. TOP’s price is now steadily increasing and been among the top of Huobi’s gains list. Presently, it’s almost double what it was during its lowest point.

TOP Staking has recently seen many stakers entering the ecosystem, which, to a certain extent, is responsible for the positive price action. Plus, our official wallet HiWallet has made it extremely simple for anyone to participate in TOP staking. You just need to download the wallet and then you can participate in staking straight away.

Conclusion

More and more systems are moving onto virtual consensus like POS. While there are several POS implementation out there, TOP’s comprehensive staking presents a system that can be implemented at scale without falling victim to the protocol’s inherent weakness. In 2020, we expect the global decentralized staking economy to grow even more, allowing our validators to enjoy higher returns than ever.

You can find TOP Network on:

Email Contact: contact@topnetwork.org

Official Website: http://www.topnetwork.org

Telegram: https://t.me/topnetwork_top

Twitter: https://twitter.com/topnetwork_top

Medium: https://medium.com/@topnetwork

Kakao: https://open.kakao.com/o/g7g9YBwb

Steemit: https://steemit.com/@topnetwork-top

Reddit: https://www.reddit.com/user/topnetwork_top

Instagram: https://www.instagram.com/topnetworktop/

About TOP Network

TOP Network is a decentralized blockchain ecosystem composed of 4th-generation public blockchain, decentralized Apps (DApps) and decentralized communications services.

TOP Chain, the public blockchain infrastructure underpinning the entire decentralized ecosystem, is the world’s first full-state sharding public chain and a high-performance platform for large-scale DApps. Powered by an innovative three-layered ledger architecture consisting of a main chain, service chains, and off-chain ledgers, TOP Chain is capable of handling real-world business of any size and volume. TOP Chain applies technological innovations such as a two-layer lattice DAG, two-layer sharding, and a parallel pBFT-PoS consensus mechanism, making a single chain capable of processing over 100,000 transactions per second. Equipped with high TPS, airtight security, and extremely fast confirmation times, TOP Chain is a reliable platform for services demanding high-frequency transactions such as communication, gaming, social media, big data, artificial intelligence, IoT, and more.

The long-term mission of TOP Network is to build a public blockchain infrastructure for all DApps. Our world-class team of over 100 developers is striving for this goal. We have already developed HiWallet, a cryptocurrency wallet, and are currently developing a series of blockchain games and more large-scale DApps on top of the ecosystem.

Moreover, over 80 million global users will be progressively migrated from the pre-existing communications Apps — Dingtone, CoverMe, and SkyVPN — to TOP Chain, generating a huge volume of transactions and traffic to make TOP a prosperous blockchain ecosystem.

TOP Network was founded by Steve Wei in Silicon Valley in 2017, with the R&D team based in China. Steve was one of the earliest employees of WebEx in the 1990s. After WebEx, he founded Cenwave Communications, a successful video conferencing software company which was acquired by Huawei in 2010. In 2012, Steve co-founded Dingtone, a publicly listed company operating a set of communications Apps with over 80 million global users.

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TOP Network is a decentralized blockchain ecosystem composed of public blockchain, DApps & decentralized communication.

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TOP Network Official Account

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TOP Network is a decentralized blockchain ecosystem composed of public blockchain, DApps & decentralized communication. Website: www.topnetwork.org

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