The ultimate solution for ETX community democracy: DPOS+POW
If you know nothing about blockchain, then before you read this article, we need to understand several related concepts. What is DPOS? What is POW? What is DAO?
Please spend a few minutes to learn about ETX (Ethereumx·NET) exclusive solutions with the above questions.
DPOS, Delegated Proof of Stake. Before understanding DPOS, we need to first understand POS: Proof of Stake. In the PoS consensus, people use proof of property to “mining”, that is to say, this is something anyone can participate in, as long as If you hold coins, you can participate in mining.
Almost all the coins of the POS proof mechanism have lost their market position. At least so far, the former king of POS PPCoin and Nextcoin are gradually faded out of people’s vision.
Why is the POS mechanism rejected by the market?
I believe that the reason why POS is not recognized by the market is that its essence is ‘capitalism’ and it will inevitably become more and more centralized. The PoS mechanism is guaranteed by the shareholders themselves, and the working principle is the binding of interests. In this mode, people who do not hold PoS cannot pose a threat to PoS. The security of PoS depends on the holder and has nothing to do with any other factors. In the POS mechanism, nodes with more coins have higher power to generate new blocks. Although POS solves the energy consumption problem of POW, full node confirmation will make it impossible to improve the efficiency of block confirmation, and the longer the time, the easier it is to produce the Matthew effect*, that is, the more people who hold the coins will get it. More currency rewards will increase the gap between the rich and the poor. Eventually, more than 50% of the centralized nodes will be generated, passively evolving into unexpected centralized results.
What are the advantages and disadvantages of DPOS?
After querying related literature and EOS related mechanisms, we concluded that DPOS has the following advantages:
- Reduced accounting nodes, faster transaction speed, EOS claims to be up to million TPS;
- More safe, generally, chain forks will not occur and are irreversible, ensuring final consistency;
- Compared with PoW, it solves the problem of resource consumption;
DPOS also has certain defects: centralization problem. Taking EOS as an example, 21 super routines can even decide to modify the code by raising their hands to vote. These 21 people imply that they are the center of the system and the rule makers, and they even have roughly the same interests as the community voters. But there is a suspicion of being biased towards centralization.
How to find a balance between centralization and decentralization?
ETX has introduced the POW mechanism based on DPOS.
In PoW, the three Powers of miners, developers, and users are separated, which is more like the equality and decentralization pursued by the blockchain.
In PoW, it is more like the opposite of POS (capitalism), that is ‘socialism’, distribution according to work and more work get more pay.
What is the purpose of POW+DPOS? And how to govern?
After a brief discussion above, we can conclude that the purpose is very simple: preventing excessive centralization, without sacrificing performance efficiency, while retaining a certain degree of decentralization, is the relatively optimal solution of current blockchain technology products = POW +DPOS.
How to govern?
DAO is an important blockchain governance solution, its full name is Decentralized Autonomous Organization. This form of organization operates entirely through computer programs, which are called smart contracts. The financial transaction records and procedural rules of a DAO organization are all run on the blockchain. This kind of company-like entity that is completely controlled and operated by computer code has no founder, no CEO, no CTO, no personnel, finance, R&D, marketing and sales department, completely eradicating human factors that affect the company’s efficiency, which is historical to the current company system change.
ETX, multi-proof mechanism balance + DAO governance, is the best solution currently.
ETX has been operating frequently recently. In order to avoid the centralization of computing power, the test network first tested the ETHASH4 algorithm, and immediately conducted a second test on the main network. Recently, it has been urgently connecting with mining machine manufacturers.
According to the Ethereumx·NET economic white paper, based on the current POW, it will officially enter the era of DAO governance after all DPOS nodes are online, and it will be transformed into a completely decentralized blockchain project. The road is long and far, and the future is full of imagination.
*Matthew Effect: The Matthew Effect refers to the phenomenon that the strong become stronger and the weak become weaker. It is widely used in social psychology, education, finance and science.
Other references:
Ethereumx·NET Economic White Paper
POW Wikipedia
Bitcoin whitepaper
EOS whitepaper
