One of the main daily topics in the #Hacken telegram chat is the migration away from Ethereum. The team will fully confirm all the details sometime soon, until then, we have rumours, the hints and some of the considerations.
Recently said on the Reddit’s AMA Hacken is looking to have their own Sidechain.
What is a sidechain?
Blockstream first announced side chain in 2014 and published its whitepaper.
A sidechain is a separate blockchain that is attached to its parent blockchain using some kind of “pegging mechanism”, where at least one of the chains is "aware" of the other chain and both tokens are pegged at a set ratio.
The original blockchain is usually referred to as the ‘main chain’ and all additional blockchains are referred to as ‘sidechains’.
Side chains need their own network security and block processing.
Going forward.
Hacken will need to decide the consensus mechanism, if you are around the telegram chat, most probably you have heard the words #masternodes and #staking.
Proof of Stake (POS) blockchains are underpinned by Masternodes. These are computers which process transactions on the blockchain and as a result are rewarded with coins from the blocks being created. Nodes sit on the blockchain, normally within a queuing system, and when they reach a certain position in this queue can be selected, at random, to be rewarded for participating within the network.
As a result of this rewards can appear at different intervals but usually average out over time.
Masternodes provide the opportunity to invest in Cryptocurrencies with the added benefit of earning guaranteed extra coins in addition to gaining exposure to the large potential increases in value that can come within the Cryptosphere and owning cryptocurrencies.
As you can see the migration from Ethereum will grant Hacken a lot of flexibility in order to incentivize investors and running a more interesting blockchain than just being a token. Once the migration has been successful I’ll cover with more details how to run your own Masternode.
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Sources: Hackernoon, Quora, Jelurida.
