INTRODUCTION
The process of mining blocks uses an enormous amount of energy because of a consensus algorithm called proof of work.1. As of today, 3.5 million US households could be powered with the energy used to run the bitcoin network, while ethereum uses equivalent power of 1 million households. 2 This enormous amount of energy is clearly not sustainable in a truely decentralized network. This probably explains the more reason why 75% of all blocks in the industry are mined by large Chinese mining companies. 3.
The problem of scalability is also a major issue of concern in the block chain industry as the number of smart contracts transactions per second currently obtainable in the industry is far below what is needed in the global smart contract system. This pretty much explains why it currently takes several hours for most block chain transactions to be verified. The security of smart contracts is also a major problem in the industry as currently networks like ethereum do not allow upgrade of contracts and that has resulted to 100's of millions of value been stolen 4.
These issues in the block chain industry currently leaves every stakeholder with great concern for the future of block chain technology and smart contracts. I strongly believe that these were some of the thoughts of the GoChain team which includes a group of entrepreneurs with vast experience in the finance and block chain industry.
The GoChain project has proven to solve the scalability issue and many major problems in the industry like high energy consumption. This is because the testnet is live and currently processing 1300 transactions per second. The good news is that this still has a room for increase when the mainnet is launched by the end of may 2018.
What is Gochain?
Gochain is a decentralized block chain that is built on the ethereum network. It aims at correcting most of the issues on the ethereum network and the block chain industry. It is a scalable, fully decentralized block chain that aims at achieving 100x more increase in speed and 1000x improvement on the energy consumption of smart contract systems. It aims at totally revolutionizing the world of smart contracts applications.
This enormous speed would totally increase the volume of transactions on the block chain. Developers and most projects already on the ethereum blockchain would not hesitate to move their smart contract systems to GoChain owing to the fact that code can be moved smoothly from the ethereum block chain to GoChain. This is a great incentive to these projects as it would greatly improve the scalability and security of their projects.
THE ADVANTAGES OF SAVING 1000x ON POWER CONSUMPTION
High energy consumption has been a major problem for mining (generating blocks) in the block chain industry. This is probably why most crypto currencies are not fully decentralized as mining companies are located in countries with constant and cheap energy supply. This has limited the mining companies to set up in specific countries with such incentives . This gives the government of these countries an opportunity to regulate the activities of these companies.
The GoChain platform saves 1000x on energy consumption which would ensure that it is fully decentralized in terms of mining. 50 different companies would be selected from 50 different countries around the world which would be entrusted to validate transactions. This way there would be no conflict between computers to win blocks reducing the energy consumption to about 0.001% of what is currently been used by the ethereum network.
BENEFITS OF GoChain POR PROTOCOL
The proof of Authority is a new consensus algorithm where a trusted set of individuals provide all transactions processing 5. The P.O.A system uses Individuals as validators. These individuals are incentivized to process transactions in exchange for staking their identities. This system is good but such networks are prone to attacks. These individuals may be tempted to cheat as the network grows larger.
The proof of reputation (P.O.R) is an increase on the P.O.A whereby big companies with big businesses would stake their reputation to validate blocks. The reputation of these companies means a lot and any form of compromise would lead to losing their businesses and public reputation as these 50 selected companies would be always checkmate their individual activities on the block chain. This way it would be hard for validators to be compromised and extremely difficult for any government or any other organizations to take over the network. It would also reduce the number of attacks on the network.
CONCLUSION
The GoChain project is revolutionary. As a crypto enthusiast I am very delighted about this project and am pretty sure that developers are too. For the first time in this industry we are having a truely decentralized crypto currency and a platform with the speed of light for smart contracts which has been a major problem in the industry.
To learn more about the GoChain project please do well to visit their website and also follow Gochain on twitter and join their telegram channel for updates. The GoChain token sale starts 16th may 2018 which you can join by registering here This is my entry to the GoChain sponsored @originalworks contest
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