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How Blockchain Web 3.0 Is Changing Industries

In this article, we’re having a look at the impact of Web 3.0 and blockchain on traditional industries. But first, for those of you who are unfamiliar with Web 3.0, here is a quick recap.

Many experts and companies describe Web 3.0 in a different way. For example, Coinmarketcap describes Web 3.0 as an internet in which data will be interconnected in a decentralized way. Forbes describes Web 3.0 as something that will bring us a fairer internet by enabling the individual to be a sovereign. True sovereignty implies owning and being able to control who profits from one’s time and information.

And so, these definitions make one thing clear, Web 3.0 is all about decentralization and its users. In Web 3.0 machines and users can interact with data; however, this can only happen if programs understand information both conceptually and contextually. This leads us to the cornerstones of Web 3.0: semantic web and artificial intelligence (AI). Web 3.0 is driven by blockchain technology, decentralized protocols and cryptocurrencies and is opening the phase of the internet revolution in which the true power lies in the hands of the users.

Web 3.0 is preparing to change how businesses operate and how internet users interact with the digital world, thanks to the most disruptive technology of our time. In this article, we will look in-depth at Web 3.0 Blockchain.

The Benefits of Web 3.0

Web 3.0 features include pro-privacy and anti-monopoly models. It will not incentivize centralized platforms that retain control over their users’ data. A shift with decentralization and privacy at the forefront will happen. Users are now in control of their data, and tech monopolies on Web 3.0 will no longer exist, thus data privacy violations will almost never happen.

Secondly, Web 3.0 is a lot more secure than its predecessor's Web 1.0 and 2.0; because of the decentralized and distributed nature. On Web 3.0 it is almost impossible for hackers to penetrate the network without the operation being traced back to them. Additionally, the data generated by users that were previously owned by tech giants will now be owned by the users. Data transmitted over the network will be completely encrypted. Users will be able to choose which information they want to share with corporations and advertising firms, and they will be able to earn money from it.

Then, there is interoperability. Web 3.0 features enable users to access data across multiple applications without being restricted to a single platform. This means you won’t have to worry about one device having access to Web 3.0 while others don’t. Finally, Web 3.0 is based on permissionless blockchain, and thus, doesn’t need a central authority. Anyone will be able to join and participate in the network by creating an address. This will eliminate the possibility of users being barred based on their gender, income, orientation, geographical location, or other sociological factors. It will also make it possible to transfer digital assets and wealth across borders in a timely and cost-effective manner.

Blockchain Web 3.0 In Different Industries

While blockchain Web 3.0 has the possibility to change many more industries, in this article we’ll expand on ten of them.

Finance and Banking

Decentralized Finance or Open Finance is already a 55 billion USD industry and digital currencies have already become a cross-border, global store of value. In fact, El Salvador recently became the first country to recognize cryptocurrency Bitcoin as their second national currency. DeFi is working hard on revolutionizing the banking and finance industry by making it more decentralized and giving authority back to its users. Furthermore, while digitizing currencies requires retooling in the banking system, Web 3.0 could make this possible. Moreover, securities and other tradable assets could also use blockchain signatures to ensure security and allow for around-the-clock trading.

Real Estate

A distributed ledger can also be used to record and manage land and resources. A global property ownership blockchain could be made up of satellite imagery, computer vision, and government records. Buying and selling real estate becomes as simple as transferring a digital certificate. Web 3.0 will make real estate transactions faster and easier in thriving economies. It can make a huge difference in the developing world for people who have lived on a piece of land for a long time but do not have any legal documentation of ownership.

Voting and Governance

Online voting has long been a dream of technophiles, dating back to the early days of the World Wide Web. The problem is that Web 1.0 and 2.0 don’t have good solutions for verifying identity, preventing duplicate voting, and protecting against attacks. Blockchain, AI, and facial recognition/biometrics assist in resolving these issues by enabling independent, verifiable online identities.

Advertising

Web 2.0 has had a significant impact on advertising, which has increasingly moved online. This means that companies have an incentive to collect and sell user data, which is bad for your privacy and attention. Furthermore, online ad fraud occurs when bad actors use bots to simulate impressions and clicks, charging advertisers for traffic that will never result in a purchase. Web 3.0 technologies will assist by keeping user data in users’ hands and allowing them to decide how to share or sell their information. By verifying impressions and clicks with the user’s identity, these new technologies will also prevent many types of ad fraud.

Computing and Data-Storage

Companies like Google Drive and Dropbox own massive amounts of user data, but they are centralized, vulnerable to attack, and expensive. A better solution could be to store data on unused space across thousands of computers on a decentralized network. Encryption and file sharding techniques enable this with redundancy and reduced vulnerability to attack. Furthermore, network node processing power is another resource for Web 3.0, and this decentralized infrastructure will become increasingly important as Web 3.0 matures.

Healthcare

From the standpoint of data security, storing data on the blockchain makes sense. It also has the added benefit of allowing your care providers to share your records if you give consent. Real-time health data will be able to write directly from your body to the blockchain as wearable devices and sensors become more popular. AI algorithms can then recommend when to see a doctor.

Social Networking and Other Entertainment Forms

Any service that requires login authentication and user data input could benefit from a distributed ledger that is encrypted. AI is already making recommendations for things to do, content to watch and read, and people to meet. To take it a step further, IoT in the real world, as well as augmented and virtual reality, have the potential to fundamentally alter how we interact online and in person.

Insurance

On a case-by-case basis, AI can learn to evaluate risk and assess claims. Then, when claims are filed, blockchain smart contracts can collect payments and automate payouts. Consider paying your car insurance on a daily or even hourly basis, with a higher premium when you’re stuck in traffic and a lower premium when your car is parked in your driveway.

Logistics

Blockchain technology has the potential to create a global ledger that makes the supply chain for products transparent. Furthermore, IoT sensors embedded in the products can update the blockchain ledger at each stage of production and shipment. Companies become more efficient when they have a clear view of the supply chain, and consumers can verify the sustainability of the products they buy.

Ecommerce

With Web 3.0 marketplaces will no longer need to rely on a central authority to bring buyers and sellers together. Instead, vendors can sell directly to consumers through open platforms.

Final Thoughts

As the blockchain space progresses, so do the implementations for Web 3.0. More and more use cases appear, and more and more people believe in a decentralized future. At Stakin, we are excited to see where Web 3.0 and blockchain will take us all.

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Phanes Technology X Ori Community

Phanes Technology’s avant-garde miner technology comes from Australia, and cloud computing power is the biggest promoter of Phanes Technology’s reputation in the chain circle. It used to provide services to users through cloud computing power for Bitcoin, Ethereum, and Dash. The project party has built a unique bridge to seamlessly integrate blockchain technology and computing power technology. Both technological breakthroughs and technical stability have been recognized by many project parties. Phanes Technology has gained experience and surveys of multiple currencies, and has also developed new understandings of digital currencies. Phanes Technology firmly believes that the original value of the currency is more important than its price, and the source of value is consistent with the consensus of the community. Therefore, Phanes Technology has joined forces with the ORI community. The ORI community allows the market to recognize the blockchain economy, rather than just buying and selling. The community named Ori received exclusive ownership of the promotion of Phanes. The purpose of the ORI community is to promote it to the world economy, so that ORI can be embedded in our living habits, whether it is consumption, transaction, investment, or item label, all can use ORI as a voucher. Ori's philosophy is "There is no single way to succeed in the world. To be successful, you must develop through the community", and you must use the community to expand your business indefinitely. ORI mainly conducts asset supervision for the community through the SPoS mechanism. It serves the community effectively and fairly. Any community member who contributes to the business can receive tokens as a reward.

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ORI’S TECHNOLOGY OVERVIEWS

The First Layer - Data Layer

Identity and registry. Active participants in the ORI network are called cloud data. All clients in ORI have been registered, that is, they have permanent pseudonymous identities. Customer registration has advantages over a typical proof-of-work blockchain. In a typical proof-of-work blockchain, it is impossible to link different blocks to the same miner. For example, if a deposit is required for registration, misbehaving clients will lose all their deposits, while a typical proof-of-work blockchain miner will only give up block rewards when misbehaving.

Therefore, the punishment for misconduct with registered identities may be much greater than the punishment for unregistered identities This is especially important because the blockchain can track unlimited external value beyond the value of the native token itself In addition, ORI supports open membership by providing a decomposition program to generate the registration code into a registry, which is the first level of responsibility.

The Second Layer - Cloud IP Layer/Create Seed Layer

Protocol communication IP cloud identity becomes a random IP port of identity on the cloud, allowing the IP to get the mark conversion and transfer information in the record section personal and other key information is hashed again to generate a new SHA 1 value as a seed The HASH value of the data, the SHA 1 value of the data, such as a 1G capacity, if divided into 1M blocks, it will be divided into 1000 blocks, and the seed will have the fingerprint value of these 1000 data blocks plus the seed program The link generator converts the profile information summarized by the seed into the DS Resolver random beacon seeding The seed in the second layer is an irreplaceable code, a verifiable random function, and a seed quantization throughput speed, which is generated by connecting multiple seed ports Every random output is unpredictable by anyone until it is available to everyone before the seed code generated by the DS needs to unlock the Hash Lock This is a key technology of the ORI system, which relies on a threshold signature verification method with unique and non-interactive characteristics The DS signature scheme is the only practical solution that can provide these functions, and ORI has a specially optimized DS implementation that uses a threshold mechanism created by randomness to solve the basic "last participant" problem Any decentralized protocol used to create public randomness without a threshold mechanism will encounter problems, that is, the last participant in the protocol knows the next DS Resolver random value and can decide to terminate the protocol There are many more Others, such as the Seed slot scheduling of the DS parser, the caching mechanism, the scheduling algorithm of the file partition, the performance improvement of the universal server for tens of millions of users, and so on.

The Third Layer - Blockchain Layer: Hash Lock /Seed Code to Hash

Blockchain and bifurcation analysis The third layer deploys the "Probability Slot Protocol "(PSP) in seed slot The protocol ranks clients according to each height of the chain, and the order is deterministically deduced from the unbiased output of random code of that height Then assign a weighted seed space to the block proposal according to the proposer’s ranking, which is monitored and filtered by the DS resolver The block from the client at the top of the list gets a higher weight The bifurcation is resolved by biasing towards the " chain in terms of cumulative block weight, which is similar to the traditional proof of work consensus based on the highest cumulative workload.

The first advantage of the PSP protocol is that rankings are instantly available, which allows predictable and constant block time. The second advantage is that there is always a client with the highest ranking, which can achieve homogeneous network bandwidth utilization. On the contrary, competition between clients will be conducive to sudden use. The third advantage is space compression and efficient arrangement. The information associated with each seed can be recorded quickly and automatically in the resolution of bifurcation analysis. The excess space is compressed, and the information is divided into multiple seeds and divided into the locked area for absorption. With replication, even if the Tracker is not connected, it will directly use the distributed hash table DHT technology to find like-minded nodes through the network, and always find the seed ports of other node ports. The more sub-distributions will improve the efficiency and Time cost.

The Fourth Layer - SPOS Layer: Generate Block Link Up with Other Supernode

ORI gracefully handles the speed generated by each node and the underlying technology of the community. SPOS is a basic structure function created by the community consensus viscosity. After the seed information is unlocked through the code, the arrangement results are calculated by the highest-level Hash Lock.

This can rule out that if two clients start to disagree on average use, then both clients will stop. If there are many evenly distributed clients and one who initially disagrees with all others, then the network may continue and only the isolated clients will be suspended. This is exactly the given expected behavior scenario. Other blockchains cannot handle this situation well. The occurrence of this kind of incident poses a real threat to them. Moreover, the seed link will independently generate anonymous super nodes. The node level is divided into five categories, and the management tasks and tasks of different levels are different, which makes continuous attacks ineffective. The start of super node work is floating. The SPOS level will make the node tasks better. If the attacker terminates any of the nodes in the work bar, this node will immediately switch to the new task bar, and the attacked task will immediately return to Hash Lock, because a single task bar is composed of multiple on the network Anonymous super nodes work, causing the attacker’s attack to be invalid. At this level, the speed of super node generation and combination is extremely fast, and there is a seed shell and seed code before the super node is generated. The seed code is forward and backward and cannot be found and verified to change the seed information, it is almost impossible to find the port attack entry or attack the node.

Notarization and near-instant end. A given final transaction implies a system-wide consensus that the given transaction has been executed irreversibly. Although most distributed systems require fast transaction termination, notarization and consensus can hardly coexist, and the existing blockchain technology cannot provide it.

ORI's SPOS layer can increase the throughput of each node and affect the transaction speed. In addition to providing notarized ultimate transactions, it will also increase the consensus level of the community within the foundation.SPOS also uses cold minting technology and does not need to transfer your own coins to super nodes. In terms of security, even after the super node is attacked by hackers, users can quickly rent their coins to the new super node, making it almost impossible for hackers to carry out 51% attacks. Subsequently, the cold mint technology highlights the way that ORI preachers are good at leveraging assets, and safe backing of assets can also allow funds to be leveraged.

The Fifth Layer Protocol - CFSP Layer: Cloud Farming Schedule Pool

CFSP (Cloud Farming Scheduled Pool) is based on the underlying technology of POSP. It aggregates multiple node mine combinations through the node certification protocol to form a cloud node aggregation pool.

To become a miner, you must have a node to obtain the mining qualification. After the CFSP starts the node mining qualification, you can enter the aggregation pool for mining. The POSP (Proof of Super node Protocol) proves that the P2P random broadband calculation data in the miner node can be used as the basis of computing power. The larger the computing power base, the greater the mining power and the more rewards you will receive. The greater the responsibility of the miner node in the community.

POSP advocates green mining, so it focuses on environmentally friendly mining. Through the infrastructure of NET and Blockchain, it becomes a regular and orderly program. Network application is the foundation, and POSP is a mechanism to maintain the trust and responsibility of miners. The emergence of POSP is to allow every family to use common basic facilities to mine at home. In addition, POSP supports CFSP (Cloud Farming Scheduled-Pool) cloud node aggregation pool green mining.

The work of the combined generator is equivalent to linking the protected seed development port, in which the super node identity verification layer is screened out by level. The secondary port is especially important. The super node enters the POSP and starts to calculate the data to integrate all the calculation power distribution certificates. Distribute and link multiple ports among multiple nodes to perform proof of work in the pool. Once the super node gets a response in SPOS, POSP will join the certified node to enter CFSP for mining.

CFSP breaks the traditional mining system and combines the functions of blockchain and the Internet to create an Internet blockchain mining system (for example, cloud mining we are familiar with). The difference between CFSP is that it promotes green mining and excludes non-environmental mining mode.

The mining model over the years is a code operation program. As long as the code operation program is based on a fixed system, it can replace the physical mining machine and greatly reduce the problem of natural energy consumption.

The Sixth Layer Protocol - DNS Seed Data Parser Layer: A Decentralized Seed Server Pool

DNS seed data parser layer DNS (Decentralized Nous System) infrastructure is to allow the super nodes released by SPOS to create a lot of impetus through mining and provide the DNS resolver for the client to be associated after the super node verification. Seeds, in other words, they convert human-readable addresses (such as user block codes) into machine-readable nodes. When users try to navigate to truncation, their operating system sends a request to the DNS seed data resolver. The DNS seed data parser responds with IP data and seed to DRR, and the cloud link port will allow the working seed breeding independent network to fall back to the DNS seed data parser layer, for example: when the super node response falls back to the DNS seed data parser layer, DRR will make the seeds generate independent network connections. When connected to the ports of other seeds, new block nodes will be quickly generated, and will not repeatedly generate discarded nodes. The seed port link can link multiple seeds independently Network, which makes DNS reverberate faster and more efficient. The entire class develops rapidly, and the problem of congestion is eliminated. At present, many decentralized open sources are seriously lacking in this sector.

The DNS resolver saves the response to the IP seed query for a period. In this way, the resolver can respond to future queries faster without having to communicate with many of the links involved in the typical DRR resolution process. As long as the specified time-to-live associated with this independent network combination allows the DNS resolver to save the response in its cache.

DS resolver block validator, super node for seeding the egress payloads to some subset of each ORI chain validator group for the next block (and possibly some favored collator(s).

As such, the data pathways per node grow linearly with the overall complexity of the system. While this is reasonable, as the system scales into hundreds or thousands of chains, some communication latency may be absorbed in exchange for a lower complexity growth rate. In this case, a multi-phase routing algorithm may be used in order to reduce the number of instantaneous pathways at a cost of introducing storage buffers and latency.

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ORI’S TECHNOLOGY OVERVIEWS (6th Layer)

The Sixth Layer Protocol — DNS Seed Data Parser Layer: A Decentralized Seed Server Pool

DNS seed data parser layer DNS (Decentralized Nous System) infrastructure is to allow the super nodes released by SPOS to create a lot of impetus through mining and provide the DNS resolver for the client to be associated after the super node verification. Seeds, in other words, they convert human-readable addresses (such as user block codes) into machine-readable nodes. When users try to navigate to truncation, their operating system sends a request to the DNS seed data resolver. The DNS seed data parser responds with IP data and seed to DRR, and the cloud link port will allow the working seed breeding independent network to fall back to the DNS seed data parser layer, for example: when the super node response falls back to the DNS seed data parser layer, DRR will make the seeds generate independent network connections. When connected to the ports of other seeds, new block nodes will be quickly generated, and will not repeatedly generate discarded nodes. The seed port link can link multiple seeds independently Network, which makes DNS reverberate faster and more efficient. The entire class develops rapidly, and the problem of congestion is eliminated. At present, many decentralized open sources are seriously lacking in this sector.

The DNS resolver saves the response to the IP seed query for a period. In this way, the resolver can respond to future queries faster without having to communicate with many of the links involved in the typical DRR resolution process. As long as the specified time-to-live associated with this independent network combination allows the DNS resolver to save the response in its cache.

DS resolver block validator, super node for seeding the egress payloads to some subset of each ORI chain validator group for the next block (and possibly some favored collator(s).

As such, the data pathways per node grow linearly with the overall complexity of the system. While this is reasonable, as the system scales into hundreds or thousands of chains, some communication latency may be absorbed in exchange for a lower complexity growth rate. In this case, a multi-phase routing algorithm may be used in order to reduce the number of instantaneous pathways at a cost of introducing storage buffers and latency.

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ORI’S TECHNOLOGY OVERVIEWS (5th Layer)

The Fifth Layer Protocol — CFSP Layer: Cloud Farming Schedule Pool

CFSP (Cloud Farming Scheduled Pool) is based on the underlying technology of POSP. It aggregates multiple node mine combinations through the node certification protocol to form a cloud node aggregation pool.

To become a miner, you must have a node to obtain the mining qualification. After the CFSP starts the node mining qualification, you can enter the aggregation pool for mining. The POSP (Proof of Super node Protocol) proves that the P2P random broadband calculation data in the miner node can be used as the basis of computing power. The larger the computing power base, the greater the mining power and the more rewards you will receive. The greater the responsibility of the miner node in the community.

POSP advocates green mining, so it focuses on environmentally friendly mining. Through the infrastructure of NET and Blockchain, it becomes a regular and orderly program. Network application is the foundation, and POSP is a mechanism to maintain the trust and responsibility of miners. The emergence of POSP is to allow every family to use common basic facilities to mine at home. In addition, POSP supports CFSP (Cloud Farming Scheduled-Pool) cloud node aggregation pool green mining.

The work of the combined generator is equivalent to linking the protected seed development port, in which the super node identity verification layer is screened out by level. The secondary port is especially important. The super node enters the POSP and starts to calculate the data to integrate all the calculation power distribution certificates. Distribute and link multiple ports among multiple nodes to perform proof of work in the pool. Once the super node gets a response in SPOS, POSP will join the certified node to enter CFSP for mining.

CFSP breaks the traditional mining system and combines the functions of blockchain and the Internet to create an Internet blockchain mining system (for example, cloud mining we are familiar with). The difference between CFSP is that it promotes green mining and excludes non-environmental mining mode.

The mining model over the years is a code operation program. As long as the code operation program is based on a fixed system, it can replace the physical mining machine and greatly reduce the problem of natural energy consumption.

[oricommunity]

ORI’S TECHNOLOGY OVERVIEWS (4th Layer)

The Fourth Layer — SPOS Layer: Generate Block Link Up with Other Supernode

ORI gracefully handles the speed generated by each node and the underlying technology of the community. SPOS is a basic structure function created by the community consensus viscosity. After the seed information is unlocked through the code, the arrangement results are calculated by the highest-level Hash Lock.

This can rule out that if two clients start to disagree on average use, then both clients will stop. If there are many evenly distributed clients and one who initially disagrees with all others, then the network may continue and only the isolated clients will be suspended. This is exactly the given expected behavior scenario. Other blockchains cannot handle this situation well. The occurrence of this kind of incident poses a real threat to them. Moreover, the seed link will independently generate anonymous super nodes. The node level is divided into five categories, and the management tasks and tasks of different levels are different, which makes continuous attacks ineffective. The start of super node work is floating. The SPOS level will make the node tasks better. If the attacker terminates any of the nodes in the work bar, this node will immediately switch to the new task bar, and the attacked task will immediately return to Hash Lock, because a single task bar is composed of multiple on the network Anonymous super nodes work, causing the attacker’s attack to be invalid. At this level, the speed of super node generation and combination is extremely fast, and there is a seed shell and seed code before the super node is generated. The seed code is forward and backward and cannot be found and verified to change the seed information, it is almost impossible to find the port attack entry or attack the node.

Notarization and near-instant end. A given final transaction implies a system-wide consensus that the given transaction has been executed irreversibly. Although most distributed systems require fast transaction termination, notarization and consensus can hardly coexist, and the existing blockchain technology cannot provide it.

ORI’s SPOS layer can increase the throughput of each node and affect the transaction speed. In addition to providing notarized ultimate transactions, it will also increase the consensus level of the community within the foundation.SPOS also uses cold minting technology and does not need to transfer your own coins to super nodes. In terms of security, even after the super node is attacked by hackers, users can quickly rent their coins to the new super node, making it almost impossible for hackers to carry out 51% attacks. Subsequently, the cold mint technology highlights the way that ORI preachers are good at leveraging assets, and safe backing of assets can also allow funds to be leveraged.

[oricommunity]

ORI’S TECHNOLOGY OVERVIEWS (3rd Layer)

The Third Layer — Blockchain Layer: Hash Lock /Seed Code to Hash

Blockchain and bifurcation analysis The third layer deploys the “Probability Slot Protocol “(PSP) in seed slot The protocol ranks clients according to each height of the chain, and the order is deterministically deduced from the unbiased output of random code of that height Then assign a weighted seed space to the block proposal according to the proposer’s ranking, which is monitored and filtered by the DS resolver The block from the client at the top of the list gets a higher weight The bifurcation is resolved by biasing towards the “ chain in terms of cumulative block weight, which is similar to the traditional proof of work consensus based on the highest cumulative workload.

The first advantage of the PSP protocol is that rankings are instantly available, which allows predictable and constant block time. The second advantage is that there is always a client with the highest ranking, which can achieve homogeneous network bandwidth utilization. On the contrary, competition between clients will be conducive to sudden use. The third advantage is space compression and efficient arrangement. The information associated with each seed can be recorded quickly and automatically in the resolution of bifurcation analysis. The excess space is compressed, and the information is divided into multiple seeds and divided into the locked area for absorption. With replication, even if the Tracker is not connected, it will directly use the distributed hash table DHT technology to find like-minded nodes through the network, and always find the seed ports of other node ports. The more sub-distributions will improve the efficiency and Time cost.

[oricommunity]

ORI’S TECHNOLOGY OVERVIEWS (2nd Layer)

The Second Layer — Cloud IP Layer/Create Seed Layer

Protocol communication IP cloud identity becomes a random IP port of identity on the cloud, allowing the IP to get the mark conversion and transfer information in the record section personal and other key information is hashed again to generate a new SHA 1 value as a seed The HASH value of the data, the SHA 1 value of the data, such as a 1G capacity, if divided into 1M blocks, it will be divided into 1000 blocks, and the seed will have the fingerprint value of these 1000 data blocks plus the seed program The link generator converts the profile information summarized by the seed into the DS Resolver random beacon seeding The seed in the second layer is an irreplaceable code, a verifiable random function, and a seed quantization throughput speed, which is generated by connecting multiple seed ports Every random output is unpredictable by anyone until it is available to everyone before the seed code generated by the DS needs to unlock the Hash Lock This is a key technology of the ORI system, which relies on a threshold signature verification method with unique and non-interactive characteristics The DS signature scheme is the only practical solution that can provide these functions, and ORI has a specially optimized DS implementation that uses a threshold mechanism created by randomness to solve the basic “last participant” problem Any decentralized protocol used to create public randomness without a threshold mechanism will encounter problems, that is, the last participant in the protocol knows the next DS Resolver random value and can decide to terminate the protocol There are many more Others, such as the Seed slot scheduling of the DS parser, the caching mechanism, the scheduling algorithm of the file partition, the performance improvement of the universal server for tens of millions of users, and so on.

[oricommunity]

ORI’S TECHNOLOGY OVERVIEWS (1st Layer)

The First Layer — Data Layer

Identity and registry. Active participants in the ORI network are called cloud data. All clients in ORI have been registered, that is, they have permanent pseudonymous identities. Customer registration has advantages over a typical proof-of-work blockchain. In a typical proof-of-work blockchain, it is impossible to link different blocks to the same miner. For example, if a deposit is required for registration, misbehaving clients will lose all their deposits, while a typical proof-of-work blockchain miner will only give up block rewards when misbehaving.

Therefore, the punishment for misconduct with registered identities may be much greater than the punishment for unregistered identities This is especially important because the blockchain can track unlimited external value beyond the value of the native token itself In addition, ORI supports open membership by providing a decomposition program to generate the registration code into a registry, which is the first level of responsibility.

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ORI’S CONSENSUS MECHANISM HAS SIX LAYERS AS DEPICTED IN FIG

Data Layer

All customer registrations are digitized.

Cloud IP Layer/Create Seed Layer

All higher-level IP converters DNS RESOLVER (DRR); transmit data to create seeds (smart contracts).

Blockchain Layer: Hash Lock /Seed Code to Hash

Verify transactions driven by the probabilistic slot protocol generated by a combination of blockchains.

SPOS Layer: Generate Block Link Up with Other Supernode

In SPOS cold mint technology can be understood as a user connected to a supernode in the wallet and can use coins for mining without transferring their coins to the supernode. In terms of security, even if a supernode is attacked by a hacker, users can quickly rent their coins to a new supernode, and it is almost impossible for a hacker to carry out a 51% attack.

CFSP Layer: Cloud Farming Schedule Pool

The resulting CFSP combination will provide rapid certainty assure customers and external observers that the seed code is used to generate the mining key, and the program code is linked to the cloud farming scheduling pool to start mining.

DNS Seed Data Parser Layer: A Decentralized Seed Server Pool

The seed data is returned to the pool, and the hash value is passed back and forth in the cloud network, The more supernodes, the faster the transmission speed of the overall block.

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THE HISTORY OF ORI

ORI’s team started in 2012 to develop and optimize peer-to-peer network transactions, mainly private chains.

In 2012, the team planned that token can be sent directly to users without gateway or counterparty risk. This is the method of using all currencies (including U.S. dollars) on the Token network. The network may wish to combine the Token with the trust structure network of U.S. dollar payment, for example, to pay transaction fees. We set the supply of Token at a high level of 100 billion.

In 2013, the ORI team launched the “Private Chain” cryptocurrency with a total circulation of 100 billion, and the block transaction confirmation time is only 3 to 5 seconds.

April 2013, the first round of financing, we received recognition from Google Ventures, Andreessen Horowitz, IDG Capital Partners, FF Angel, Lightspeed Venture Partners, Bitcoin Opportunity Fund and Vast Ventures received 1.5 million US dollars in funding. This is the first round of multiple venture capital, including some of the most famous capital venture’s companies in the world.

2017, the “encrypted digital currency” successfully entered the Coinbase digital currency ranked TOP 30 places at the end of 2017. Since its establishment in 2020, it has provided services to 120,000 customer services in more than 20 countries and regions on June 2021, our team cooperated with (Phanes Technology) to launch its own unique CFSP “CLOUD FARMING SCHEDULED POOL” service for the Ori Community.

Our development team “ORI” reached a cooperation agreement with the cloud computing power mining company “Phanes Technology” and created a unique “CFSP” CLOUD FRAMING SCHEDULED POOL. The green mining model officially opened the “ORI” encrypted digital currency.

The ORI peer-to-peer network consists of clients connected through the blockchain network, which can make cloud mining to the blockchain network for everyone. Users perform six active functions:

a) participate data become registry

b) participate in decentralized seed generate.

c) participate in proposed blocks hash lock, the client also observes the block and establish their own view of the chain.

d) Become super node in SPOS to participate in enhancing the ORI community consensus to genarate reward and accelerating TPS

e) Start cloud mining in CFSP focuses on environmentally friendly mining.

f) participate mapping DNS seed data parser to let open cloud link port and multiply node port to your super node.

The network node can be a collection of all clients. On a large scale. Network, the node will be smaller than the set of all super nodes, and the super node is upgrade to the next round of changes (ie, from one block to another). Through the SPOS mechanism. Select the next super node in the SPOS to create a brand new node for all clients.

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TRON

Middle-men rule the internet. Companies like Google, Facebook and Amazon own and control the data we all generate. That’s made those companies-in-the-middle very wealthy, and the rest of us not only out-of-pocket but unsure how and what our data is being used for.

That’s a problem Tron wants to solve. It wants to give power back to the content creators, and create a way to monetise the things those users create and back them all-up on blockchain.

What is Tron?

Tron is a decentralized blockchain designed for entertainment and content creation. Part social media, part content platform, Tron is designed to allow people to create content that can be shared and traded as a user sees fit. That data can be anything from text to pictures, audio and video.

Like Ethereum, Tron has its own smart contracts, Dapps and a wallet. But unlike Ethereum, Tron’s ambitions are to create more sophisticated services like its own trading platform and ultimately a decentralized gaming network for developers to build upon.

Who invented Tron?

Tron was founded by Justin Sun, the former chief representative of Ripple in China. While Sun is the CEO, the network is managed by a non-profit called the Tron Foundation.

A brief history of Tron

March 2014 Raybo, a precursor to Tron is founded

July 2017, the Tron Foundation is established in Singapore

December 2017, Tron launches its own open source protocol

March 2018, Tron launches TestNet and its own web wallet

April 2018, Tron elects super representatives

May 2018, Tron launches its MainNet

June 2018, Tron’s first genesis block is created

What’s so special about it?

Tron’s mission is to “heal the internet”. It believes it can do that by deploying four main features.

Data liberation: allow data to move freely and uncensored across its network.

Digital assets: create an ecosystem where users can own the rights to content and track it as it spreads.

Personal ICOs: The ability for anyone to raise funds and distribute digital assets.

More than just smart contracts: Create infrastructure to allow more complicated assets like games and market forecasting to take place on the platform.

How is Tron produced?

Unlike mining based currencies like Ethereum and Bitcoin, the currency was issued at launch. Tron has a token count of 99 billion — with two thirds of that number in supply.

How does Tron work?

At the heart of Tron is a consensus protocol known as delegated proof of stake or DPOS. In this system people vote for others to become nodes, or in Tron’s case “super representatives”. On the Tron network there are 27 of these super representatives.

Their job is to validate transactions, create new blocks and compete for rewards for good behaviour on the network. The voting system to elect super reps is ongoing, meaning if a rep is misbehaving, they can be replaced.

What can you do with Tron?

Tron is less a cryptocurrency like Bitcoin, and more a unit of value. It wants its TRX Token to be able to allow the exchange of digital assets without a middle man.

One of the earliest projects built on Tron was Gifto, a paid social media platform that allows content creators to earn gifts from followers.

Tron’s TRX token acts as the ledger that keeps track of the exchanges on the network and ultimately becomes a store of value that content creators can use as they see fit.

The future

Tron has been gathering momentum by building partnerships in its native Singapore and Asia. Like NEO, it has focused its attention on China, an audience who has been actively embracing blockchain technology.

However, Tron isn’t alone in its ambitions. Other smart contract platforms like EOS and Cardano also want to create similar ecosystems. Who will be the first is up for grabs. What’s more than likely is multiple platforms will co-exist along side each other. Which would be good for everyone.

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Ethereum

What is Ethereum?

If Bitcoin is the floppy disk of blockchain, Ethereum is the CD: it’s an evolution of the technology. What bitcoin proved was that a currency could be created by a community, and sent and received by anyone with a cryptocurrency wallet. It also solved the rather tricky double spending issue.

What Ethereum has proven however, is that blockchain can be so much more than just a store of value. It can be used to organize people, ideas, companies, money, services, you name it. If anything can be written into code and used by a smart contact it can be built on Ethereum.

This simple idea has allowed companies to use Ethereum to manage property, shares, contracts, play games, and even build your own nation.

Who Invented Ethereum?

A Russian/Canadian computer programmer called Vitalik Buterin wrote the white paper Ethereum is based on. However, the building of the network and community was helped along by co-founders: Anthony Di Loria, Charles Hoskinson, Miha Alisie, Amir Chetrit, Joseph Lubin and Gavin Wood.

A brief history of Ethereum

2013 — Vitalik Buterin produces a white paper explaining the concept of Ethereum

January 2014 — Ethereum is publicly announced

July 2014 — Ethereum launches an ICO using Bitcoin to buy Ether

June 2016 — $50 million of Ether was stolen from a crowdsale and Ethereum developers agree to reverse the decision by creating a ‘hard fork’ — read about what a fork is.

March 2017 — a group of companies including Toyota, Samsung, Microsoft, Intel, and J.P. Morgan establishes the Enterprise Ethereum Alliance, a non-profit designed to make Ethereum suitable for big business.

What’s so special about it?

Ethereum is taking the technology Bitcoin is built on and making it more than just a currency. It allows developers to build apps — they’re called Dapps in the Ethereum world — which bundle those smart contracts together into an easy-to-use interface. You can even build your own currency on top of Ethereum.

If Bitcoin is the gold of the cryptocurrency world, Ethereum is the oil that machines are powered on.

What is Ether and How is Ether produced?

Ethereum is a network that wants to change how companies work on the internet. Ether on the other hand, is the cryptocurrency Ethereum uses to build and maintain its network. In a similar way to how Bitcoin works, miners create Ether by creating blocks and solving puzzles. This technique, known as mining.

Roughly every 15 seconds, a new block is added to the Ethereum blockchain, with the computer or miner that solves the puzzle at the heart of the block being rewarded with Ether.

Ethereum currently uses the same mining technique as Bitcoin, however, it has plans to move to a different technique.

How do you get hold of Ether?

You can buy Ether on an exchange, or you can become a miner yourself!

What can you do with Ethereum?

Social Networks — Get paid for your posts on social media.

File Storage — Decentralised file storage as a fraction of the price.

Overseas Payments — Dramatically reducing the cost of sending cash overseas.

Payments Cards — Contactless debit card to pay in Ethereum and other cryptocurrencies.

Online advertising — Cutting out the middlemen in online ads. Users get paid directly for watching online advertisements.

Loans — Blockchain backed loans with no credit checks.

A lot of these ideas are still in their early stages, but the way Ethereum is built, all of these ideas are completely possible.

The future

Ethereum wants to be the platform that all decentralized apps get built on. However, it has been experiencing a few growing pains. One of the biggest has been transaction speeds. In order for Ethereum to become the network all decentralized companies are built on, it has to be able to allow more transactions to happen at once. At present it handles rather 15 transactions per second, whereas Visa can handle up to 24,000, so it has a long way to go.

Another challenge Ethereum faces is from other networks such as EOS, NEO and Tron to name but a few. These networks are all trying to increase speed, without compromising on security. Whoever cracks that first will unlock the decentralized future.

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Bitcoin

Bitcoin was the first cryptocurrency, and launched an industry that now includes thousands of them. But who invented it, how does it work, and why is it so important? We explore this and more for you below.

What is Bitcoin?

Bitcoin (BTC) is a peer-to-peer cryptocurrency. Think of it as a digital token. You can’t physically touch or hold Bitcoins, and all Bitcoin transactions are logged on a public, decentralized, immutable ledger.

The original appeal of Bitcoin was as a new way to pay for goods and services that doesn’t rely on a centralized bank, government, or credit provider. These days, there are ongoing debates over whether Bitcoin really functions as everyday money, or more as a store of value (the “digital gold” argument).

Who invented Bitcoin?

No one really knows for sure. But the person (or persons) most directly responsible used the pseudonym Satoshi Nakamoto when they authored a white paper in October 2008 called “Bitcoin: A Peer-to-Peer Electronic Cash System.” It was published on a small mailing list for cryptography fans. In January 2009, the software to create the currency was released, followed shortly after by the first ever block mined on the network, known as the Genesis block.

The first identifiable person to get involved in Bitcoin was a programmer named Hal Finney, who downloaded the software needed to run it and on January 12, 2009, received 10 Bitcoins, making it the first ever Bitcoin transaction.

For a while, Satoshi Nakamoto and a few others mined currency on the network before mysteriously disappearing, handing over control to another programmer named Gavin Andresen.

What was so special about Bitcoin?

Bitcoin had qualities that no other form of digital cash had gotten quite right in the past:

Decentralized: No one person or group owned or controlled it.

Peer-to-peer: No third party (like a bank) needed to confirm and approve transactions.

Borderless: Bitcoin can be moved easily across the world, at smaller fees and faster speeds than traditional money transfers.

Immutable: It’s near impossible to change or tamper with blockchain transactions.

Prevents double-spending: This was a problem many prior digital currencies had tried to crack before.

How is Bitcoin created?

Picture gold under the ground. We know it’s there, but its value is hidden until a miner digs it up. In the Bitcoin world, a miner unearths Bitcoins by using expensive computers to solve cryptographic puzzles in real time that “mine” bundles of transaction records (“blocks”) to the blockchain.

In Satoshi Nakamoto’s white paper, they designated that there could only ever be 21 million Bitcoins created — but we haven’t hit that cap yet. Miners get rewarded for their efforts with a small amount of new Bitcoins, and the mining reward is halved every four years as a measure to slow the creation of new Bitcoins. At the current rate of mining, all Bitcoins will be mined by somewhere around 2140.

How do you get hold of Bitcoins?

There are two ways to acquire some Bitcoin:

You can buy some using fiat currencies ($, £, or € for example) at crypto exchange sites. You’ll need a digital wallet and you’ll get a set of keys that you’ll use to access your holdings.

You can become a miner by buying a mining rig, though the equipment is very expensive and it takes a while to become profitable.

What are some things you can do with Bitcoin?

Make purchases — Buy anything from a Tesla to a house; an increasing number of mainstream commerce sites accept payment in Bitcoin.

Gamble — If you’re feeling lucky, a whole slew of gambling sites accept Bitcoin.

Digital Rights Management — Bitcoin, and the blockchain protocol it’s built on, can be used to help musicians and artists control who has access to their IP.

Identity — Thanks to the unique double-key system used in Bitcoin wallets, the Bitcoin blockchain can be used as a way to verify your identity online.

What is a Bitcoin wallet?

Like a regular wallet, it’s a place to keep your valuables — but digital. When it comes to Bitcoin, those valuables are your keys (strings of numbers and letters), held on a piece of software you can store on your phone, the web, or a computer. Or to be extra safe, you can write down your keys somewhere completely offline; this is called “cold storage.”

In order to buy and sell Bitcoin, you need both a private and a public key.

Your public key is what you share with other people so that they can send you Bitcoin. Think of it as your address; it’s okay for people to know it.

Your private key is something you keep to yourself. When you trade, you use your private key to authenticate that it’s you who is requesting to send or receive Bitcoin.

The Future

We know that all Bitcoins will be mined sometime around 2140. In the meantime, the future of Bitcoin and its value is uncertain, and fluctuates. The larger debate over Bitcoin’s best use case also rages on. Will it become an everyday currency, or just be a store of value investment, like digital gold?

Bitcoin’s future is uncertain. But the potential for a whole world of useful blockchain applications is just beginning.

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Public Blockchain VS Private Blockchain

What is a public blockchain?

Bitcoin uses a public blockchain, where anybody can be a node and all data is publicly accessible. All transactions ever made since the genesis block are available to look at using a block explorer.

Why might this be bad?

A business may want to use a blockchain but it might not want all its data publicly accessible. A public blockchain could breach data protection acts or give away business secrets.

Public blockchains carry risks because the miners could collaborate and alter the blockchain. This is known as a 51% attack. This could be damaging for a business if it held assets on it and they were deleted or stolen.

What is a private blockchain?

A private blockchain is a distributed ledger that is controlled by a single entity. The owner controls access to the blockchain. This means they select who can mine it, who can use it and who can see it.

They are sometimes called permissioned blockchains.

What are the benefits?

Private blockchains have many advantages, primarily for business use-cases. These include:

Control — The owner can force changes to be made to the blockchain. This means they can edit transactions and add new ones if they wish. This might be necessary for data protection regulations.

Private — Transactions are not publicly available. This has advantages for a business in keeping its data away from prying eyes.

Cheaper — Transactions only need to be confirmed by a few high-processing computers than thousands of smaller ones. This means transaction fees are much lower.

Cleaner — Mining new coins is unnecessary. So, nodes won’t use up mind-bogglingly high amounts of electricity associated with proof-of-work.

Safer — If the company uses nodes that it knows are trustworthy, then it won’t have to worry about a 51% attack which could happen to a public blockchain.

Faster — Transactions can be confirmed quickly which means block times can be quicker.

What are the issues?

Private blockchains are not without their critics. Here are some issues:

Unnecessary — Public blockchains are designed to work in a trustless environment. If the nodes are trusted, it may be simpler and cheaper to just use a database.

Trust — Public blockchains work because anyone can verify its transactions. A third party may not trust a private blockchain because it could have been edited or manipulated by the owner.

Centralized — If a private blockchain only has a few, more powerful, nodes then it has fewer points of failure. Public blockchains have thousands of nodes meaning no downtime.

Why not use a database?

Private blockchains have several advantages over databases for specific use-cases:

Accountability — It is possible to follow data entries back to the beginning on a blockchain.

Partnerships — Several companies may wish to use a private blockchain so they can each validate transactions without making the data publicly available.

Standardization — Rather than try to connect different business systems together, they can each integrate with one blockchain-based system.

Which companies are using private blockchains?

The Linux Foundation’s Hyperledger Fabric is a permission blockchain framework. It is an open source protocol used by the IBM Blockchain Platform and others in delivering blockchain-for-businesses services.

The future

Private blockchains could be used to track a product across its entire supply chain, across several different companies. This could enable much safer product creation as it allows for greater oversight over the whole process.

They could also be used for a global finance payments system, as IBM hopes with its Blockchain World Wire which runs a private blockchain on the Stellar platform. This would enable much cheaper and faster cross-border payments. This can be done using public blockchains but businesses may require the greater control and oversight that private blockchains offer.

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Smart Contract

A smart contract is a contract — expressed as a piece of code — that’s designed to carry out a set of instructions. The only difference is, with smart contracts there’s no middleman. There’s no person or company holding your information or verifying it. The blockchain verifies and holds a record for you.

How does a smart contract work?

So, you want to buy a car online without a smart contract. In order to do so you need:

A listing site to hold the information on all the cars you’d like to see

A way of communicating with sellers

A payment system to allow you to exchange money once you’ve found your car

Some capacity to get a refund if the car turns out to be a dud

You’ll also need to register the exchange of car ownership with the authorities

Each of these points requires you to trust the site or service you’re accessing — and a lot of the time, each part of that process is controlled by a different company or individual.

A smart contract removes the need to trust so many people in the process of buying something.

Secure: They use cryptography to stop people altering records.

Transparent: Everyone can see on the blockchain what the smart contract is and what it’s being used for.

Third-party free: Smart contracts don’t need a middleman to verify. The blockchain does that for you.

Autonomous: They work automatically, so you’re not having to wait for someone to push a button.

Accurate: Because smart contracts are written in code, they don’t rely on the grey areas of a language and what words mean.

Inside a smart contract

Like regular contracts, smart contracts are designed to enforce the terms of an agreement — whether this is an exchange of cryptocurrencies, tokenized rights, proof of identity, or practically anything else.

Smart contracts will automatically execute when pre-defined conditions are met. The operation of a smart contract can be briefly described with three main terms:

Interconnectivity: Each smart contract usually has a restricted set of functions. Several smart contracts can be set up to connect with one another and can form more complex arrangements known as decentralized applications (dapps).

Objects: These are the signatories that interact with the smart contract and the subject/s which is/are modified by the smart contract based on predefined or newly-submitted terms.

Environment: Smart contracts are dependent on an underlying cryptographic environment. This ensures they can operate securely, and that the data they act on is immutable and generally transparent.

For most blockchains, the code underlying the smart contracts is immutable, though several blockchains also support updateable smart contracts.

Who created smart contracts?

Like the blockchain technology used to power most cryptocurrencies, smart contracts were derived from earlier technologies that weren’t quite complete. In the case of smart contracts, they are derived from earlier electronic instruction execution programs that used if/else statements other conditional logic to automatically produce an outcome based on the information it is presented with.

The term “smart contract” itself was coined in the 1990s in an academic paper created by Nick Szabo, a prominent computer scientist and cryptographer that was also responsible for developing one of the earliest precursors to Bitcoin, known as Bit Gold. Szabo initially described smart contracts for a variety of basic purposes like fraud reduction and enforcing contractual arrangements, but later elaborated on the potential use-cases of the technology to digital cash, smart property, and more in a 1996 paper.

Ethereum implemented a Turing-complete language on its blockchain, allowing for complex and sophisticated logic in its smart contracts.

How do dapps use smart contracts?

Dapps, or decentralized apps, can be best thought of as a bunch of smart contracts tied together. A smart contract on its own can only be used for one type of transaction. A dapp, however, can bundle multiple smart contracts together to do more sophisticated things.

A dapp can also put a friendly interface on top of the contracts — just like apps do today.

Some notable dapps:

Augur — A tool that allows anyone to speculate on derivatives

MakerDAO — A decentralized finance (DeFi) dapp that enables users to lend and borrow of cryptocurrencies without needing a middleman.

Uniswap — An Ethereum-based exchange that allows anyone to swap ERC20 tokens.

CryptoKitties — Unique NFT-based crypto-collectibles that can be “bred” using smart contracts.

Argent — an Ethereum wallet that uses smart contracts to abstract away concepts like addresses and private keys.

Who is using smart contracts?

Smart contracts are a relatively new technology, but they have already seen widespread implementation — particularly among pure crypto projects.

Smart contracts are at the heart of the entire decentralized finance (DeFi) revolution and are used to power popular DeFi protocols like Compound, Aave, Uniswap, and hundreds of others.

But they’ve also been adopted by a whole host of corporations, and even some governments have begun experimenting with smart contracts. Some of the most prominent examples include:

Ubisoft: Video games giant Ubisoft has embraced blockchain in a big way; among its many blockchain initiatives, it’s crafted specially-designed smart-contracts allowing users to own, transfer, and claim rare non-fungible tokens (NFTs) based on its popular Rabbids gaming franchise.

ING: Dutch bank ING has co-created Fnality, a blockchain-based trade-settlement system using smart contracts. It’s also involved in a number of other blockchain initiatives.

The Swedish government: Sweden’s government has tested a blockchain-based land registry for proving the ownership of land, which is built on smart contracts.

Smart contracts aren’t always perfect

Although smart contracts are generally considered to be a “trustless” way of enforcing agreements and logic, they aren’t without their fair share of problems.

For one thing, smart contracts are immutable on many blockchains. This means that once launched, they cannot be changed or upgraded, which can lead to disastrous consequences if there are underlying issues with the code. This is perhaps best highlighted by the 2016 Ethereum DAO hack, which saw an unknown hacker siphon off millions of ether (ETH) by exploiting a loophole in the DAO’s split function.

Unknown and novel attack vectors can also often be exploited, usually ending with investors losing money. This was seen in September 2020, with the collapse of the test version of Eminence, a project by Yearn Finance’s Andre Cronje. It was exploited for $15 million by an unknown hacker after a huge number of investors sank their money into it.

Likewise, simple bad code can render the smart contract effectively useless. This was seen with the collapse in August 2020 of the DeFi yield farming project known as YAM, which used unaudited smart contracts and was thwarted by a critical bug that rendered its governance feature useless.

Top 10 smart contract platforms

Smart contract platforms have grown to become one of the most significant sectors of the crypto economy. Of the top 10 crypto assets by market capitalization, three are smart contract platforms, with one — Ethereum — second only to Bitcoin itself.

Between them, the 10 leading smart contract platforms have a combined market capitalization of over $176 billion as of this writing. They are:

Ethereum: Ethereum is designed to function as decentralized “world computer”, which can be used as a platform on which dapps can run.

Cardano: Cardano is an open-source public blockchain project. Its USP is that it claims to be the world’s first peer-reviewed blockchain, with a network of academics and scientists checking its protocols before they’re released.

Polkadot: Created by Ethereum co-founder Gavin Wood, Polkadot is a “multi-chain network” designed to join blockchain network together.

EOS: Targeting business users, EOS is designed to address common issues around blockchain such as speed and scalability.

TRON: A “decentralized virtual machine,” Tron was originally designed as a social media and entertainment platform, and now has the lofty goal of underpinning a decentralized Internet.

NEM: Short for New Economy Movement, the NEM platform is designed to give enterprises a more efficient way to verify and move blockchain assets.

Tezos: Ethereum competitor Tezos was designed from the ground up as a proof-of-stake blockchain, with on-chain governance; coin owners can vote on proposals to make changes to the way the Tezos blockchain works.

VeChain: VeChain is designed to improve and simplify supply chain management, helping businesses to eliminate fraud from the manufacturing and delivery process.

NEO: Often dubbed “the Chinese Ethereum”, NEO differs from Ethereum in that it doesn’t have transaction fees; it’s also faster, supporting around 10,000 transactions per second.

Cosmos: Cosmos is an “Internet of blockchains,” a network of blockchain networks designed to communicate seamlessly with each other using the Inter-Blockchain Communication protocol.

The future of smart contracts

Nowadays, most blockchains have smart contract functions, with active communities of developers creating dapps using smart contracts on blockchains such as Cosmos, NEO and Hyperledger. The scope of smart contracts’ capabilities can range from very simple on something like Bitcoin or Litecoin, to more advanced on dapp-capable blockchains like Ethereum, Tron, and Polkadot.

We’re still in the early days of what smart contracts and dapps can be used for. But there are companies and even governments experimenting with their potential already. They are now used for a huge range of tasks, including digital identities, supply chain management, insurance, data storage, and a whole lot more.

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POW and POS

Mining cryptocurrency is an energy-intensive business. But it doesn’t have to be.

The Ethereum community has been working to change how the currency is created in order to radically reduce the blockchain’s carbon footprint. The method it’s working toward is called proof of stake (PoS).

Proof of stake is an alternative to proof of work (PoW), which Bitcoin and Ethereum currently use, and both PoS and PoW are examples of consensus mechanisms.

Consensus Mechanisms

Public blockchains, at their most basic level, are just databases.

Most databases set permissions for who can access and edit them. This centralized control is convenient but makes them vulnerable to hacks. By contrast, blockchains make everyone running the software — from exchanges to traders in their basement — responsible for updating them.

That sounds like it would be messy, which is why blockchains use “consensus mechanisms” or “consensus algorithms.” Consensus mechanisms keep the network humming, making sure that only legitimate transactions get added to blocks. It’s all the nodes — or computers running the blockchain software — checking together to say, “Yes, this is true.”

In doing so, they guard against 51% attacks, which is when someone gets more than half of the computing power in a distributed network and can then control it.

Proof of Work (POW)

To prevent attacks, which make it possible to spend funds twice, Bitcoin uses the proof-of-work consensus algorithm. That system asks people to use hardware and electricity to help the network process transactions. In proof of work, miners (or, their computers, to be precise) try to solve fiendishly difficult puzzles in order to be the first to complete a block of transactions. Their work helps to verify the transactions are legitimate. As compensation, they’re rewarded with cryptocurrency such as Bitcoin.

Proof of work was built into the design of Bitcoin, and replicated by other cryptocurrencies, including Ethereum. However, one of the by-products of this system is it requires a lot of electricity and machines working on a problem in order to solve it.

Proof of Stake (POS)

Ethereum developers are building a separate set of upgrades, Ethereum 2.0 that will run on proof of stake and will eventually merge with the Ethereum mainnet.

Proof of stake on Ethereum 2.0 aims to achieve the same outcome as proof of work: to securely verify transactions on the blockchain.

But whereas PoW miners dedicate hardware resources (large, expensive computers) to secure the network, PoS “validators” dedicate their cryptocurrency. With PoS, to get a chance to verify transactions in a block — and get the associated fees — validators must lock up, or stake, at least 32 ETH that they can’t spend. The blockchain uses that locked-up crypto to secure the network.

According to the Ethereum Foundation, proof of stake has several advantages over proof of work.

Since earning rewards isn’t based on having the most computing power, you don’t need super-fancy hardware.

That opens up the possibility for more people to participate in running an Ethereum node, which will allow for further decentralization and more resistance to 51% attacks.

Because of the lower hardware requirements, proof of stake uses far less energy than proof of work.

How Does the Network Choose?

Validators are chosen at random by the network to propose new blocks.

They are also randomly grouped into committees of 128 nodes, which change daily. Every time a new block of transactions is created and added to the blockchain database, the PoS consensus mechanism selects multiple committees to “attest” that the block that’s been proposed is correct.

Validators receive rewards for both making blocks and attesting to seeing other blocks being made. If validators are offline or not making correct attestations, they receive a penalty. If they try to attack the network, they can lose up to their entire stake.

The algorithm is designed to make an attack on the network statistically improbable. According to ConsenSys (which funds an editorially independent Decrypt), “There is less than a 1 in a trillion chance that an attacker controlling 1/3 of the validators on the network would control ⅔ of the validators in a committee to successfully execute an attack.”

The Future

Ethereum isn’t the first cryptocurrency to use proof of stake. Algorand, Cardano, Cosmos, EOS, Polkadot, and Tezos have all implemented a version of proof of stake.

The Ethereum network is currently in Phase 0 of its upgrade to Ethereum 2.0. While people have staked ETH to the network, it’s not yet ready to be built upon.