The Most Exciting Protocols For The Staking.

By Dj on ALTCOIN MAGAZINE

The Blockchain technology continues to advance in its development for mass adoption. In its evolution to achieve this goal, it is currently going through the natural process of solving the great challenges of its time. This pursuit involves the ‘holy grail’ of the chain of blocks: Scalability, Security and Decentralization.

The contemporary solution to the unscalable energy expenditure of the Bitcoin and Ethereum chains has arrived by modifying their Proof of Work consensus mechanism by Proof of Stake. These derivations suppose a new economic model beyond a technologically ecological solution.

Important and notable platforms of today have adopted improvements to the Proof of Stake, such as EOS with its dPoS, FLETA with its PoF, or Cosmos with its bPoS. This is done to achieve better scalability than their predecessors and potentially translate into a greater amount of real-world use cases and ultimately support blockchain technology towards massification.

There are some technical foundations that allow certain platforms to stand out from the rest of their competitors, even when they are in early-stages and not completely functioning ‘Mainnet’. Let’s review these technical characteristics that allow the new generation of blockchain platforms to be a great option to consider for staking.

Interoperable Blockchains.

Every day there are more needs for compatibility between blockchains. This is due to the wide range of platforms, that even when they have similar or equal consensus mechanisms, each with has their own unique features which set them apart respectively. This raises a question; what is the use of having a robust platform if it does not allow communications with similar chains, both friendly or competitor?

The idea was born of the need to be able to transfer, exchange or move assets between different chains, thus making different blockchain platforms to work with each other. This ecosystem introduces risks related to trust and security. When dealing with assets in different blockchains, there are two main interoperability scenarios: exchange an asset in one chain with another asset in the other chain or represent an asset in several chains and move instances from one chain to another.

FLETA Interchain communication.

It is estimated that the projects that allow communication between chains are the ones that can survive over time because their interoperability allows them to open the design space in terms of what can be built to endure the test of time.

There are platforms that by their design allow the interoperability between chains. Cosmos, FLETA and Polkadot are three of the most interesting projects here. This group allow for the communications between public blockchains of different companies or projects to exist without the need to undermine the operation principles of each other respectively.

These three platforms can be used to implement networks of blockchains. This is possible through the incorporation of relay technology and custodian bridges of multiple signatures in the protocol architecture.

Cosmos and Polkadot are more general-purpose, while FLETA is optimized more to the field of Dapps and Gaming. The three chains are based on a root chain that acts as a gateway for the communication of several parallel chains. In the case of Cosmos and Polkadot, Essentially, the root chain stores Merkle roots of transactions that occur on individual chains, where FLETA, on the other hand, achieves it at a different level thanks to its ‘Merkle Level Tree’.

Polkadot Parachain.

Enablers For dApps.

The business of decentralized applications has shown in recent months to be a business in sharp increase. In Southeast Asia alone, the figures reveal a trillion-dollar market for the next three years and it is no wonder with the boom this year of blockchain technologies which bolster the number of use-cases. The subsector of gaming entering the scene has also boosted the profitability of the business of this emerging industry.

For this to happen, the new generation platforms have already captured the change that is coming and what they must solve at the technological level in order to be true actors in a market which has been centralized until now by the first actors of the scene: EOS, Ethereum, and Tron. However, the limitations of blockchain scalability have put into question whether they can withstand the demand that is to come.

Hopefully, the new protocols will unlock the true potential of decentralized applications by being profitable to scale and by providing a better developer experience. There are many talented researchers and engineers who develop interesting protocols that fall into this field, especially Ethereum 2.0, Polkadot, DFINITY, Solana, NEAR, Matic, nd FLETA.

The success of this sector of the Blockchain will go to demonstrate that decentralized applications are really functional for the common user from the point of view of speed and security, as well as a friendly environment for developers who fully comply with their programming requirements.

Scalable And Adjustable Blockchains.

The blockchain currently has one of its major limitations clearly demonstrated with the first- and second-generation platforms of the technology — and even some of the 3rd generation still suffer from scalability. It is difficult that this technology can grow and support greater numbers of transactions if it does not scale. Recent cases with Bitcoin when its price was at its highest and also in Ethereum with dApps like Cryprokitties easily flooding network traffic, evidenced this problem.

To visualize the scalability problem, VISA and Mastercard can process up to 56000 transactions per second (TPS), while Bitcoin, for example, can only process approximately 7 transactions per second (TPS). As part of the solution to solve this problem, many platforms have introduced improvements to their consensus mechanisms, deriving basically from Proof of Stake, which is thought to avoid the intensive consumption of energy that characterizes the PoW algorithms on one hand and on the other is used to avoid centralization of staking power.

Transactions Per Second, TPS.

Matic, Cosmos, and FLETA offer good scalability, an interface for the development of smart contracts and proven community governance functions.

Matic (Proof-of-Stake) has already achieved 6000–10000 TPS in a closed environment, and a single sidechain is theoretically capable of up to 65K TPS.

Matic Architecture.

Matic sidechains enforce consensus using a Proof of Stake (PoS) layer in which network participants stake Matic tokens in order to participate as validators.

Cosmos (Bonded Proof-Stake) with Ethermint offers the same ability as Ethereum to implement smart-contracts using the RPC web3 endpoints, but those transfers are executed at a speed 20 times higher, since it can pack 20 times the transactions in a single block . As a result Ethermint has a limit of 200 TPS.

Due to the modular design of the Cosmos Hub and its peg zones, it can easily spin up to second Ethermint zone and get a throughput of 400 TPS.If you add two more Ethermint zones, you get 800 TPS, and so on. This method of achieving horizontal scalability is unique to the Cosmos network and it’s infinitely scalable.

Cosmos Blockchain.

For now, with the implementation of Tendermint, the base language of Cosmos is based on Ethermint and currently possible to achieve 10000 TPS.

In Cosmos currently, there are 100 active validators (out of a total of 171 qualified validators) that are helping to manage the Cosmos network. Currently, there are 146 million ATOMs delegated on the Cosmos network, an amount valued at around $ 850 million (at current market prices)

Other interesting protocols, which are currently in Testnet, include Polkadot, Algorand, and FLETA with its improved algorithm called PoF (Proof-of-Formulation), derived from the dPoS principle.

FLETA has tested a maximum of 20,000 TPS with CPU 6 core in beta phases. Its mainnet is expected to be launched at the end of July 2019 and for now, they project, according to their official channels, to maximize scalability thanks to their technology which can offer up to 15000 TPS in practice.

Sharding Paralle of FLETA.

Regarding the governance of FLETA, they have introduced a model of Hyperformulators and Validators for their Proof of Formulation algorithm, with a pre-registration of mining that to date has a blocking of 233 million tokens of its initial circulation volume of 360 million, a 64.7%.

Innovative Blockchains.

FLETA has been innovated with its proposed algorithm of Proof-of-Formulation by opting for a redesign of the size of the block that, together with parallel sharding, allows use-cases being highly scalable with up to 15000 TPS. With the upcoming launch of the FLETA mainnet for August 2019 and the launch of its upcoming blockchain game, this project promises to break new ground in the development of Dapps which provided real-world uses-cases in industries which could benefit from blockchain solutions such as medical records.

DFINITY is moving away from the idea of building ‘alone’ another chain of high-performance blocks that points to a decentralized cloud computing platform.

DFINITY Cloud Blockchain.

The team behind Polkadot has a great experience in the construction of high quality blockchain software.

Finally, Solana is taking advantage of key innovations in multiple areas, such as data propagation and networking, as well the parallelization at run time and the data structure of the underlying ledger. Solana aims to scale a single chain of blocks (without fragmentation) And make it incredibly fast.

References

https://cosmos.network/

https://polkadot.network/

https://fleta.io/

https://dfinity.org/

https://matic.network/

https://hackernoon.com/simply-explained-blockchain-scalability-solutions-past-present-and-future-1bc4d5c309b6