Consensus, in the context of a distributed computing network, is a mechanism by which multiple physically separated participants can reach an agreement over something (e.g. to agree if a transaction is valid and which block to place the transaction in). Several Blockchains employ a variety of mechanisms to achieve consensus, and this article tries to break them down in as simple a language as possible.
Before we start, it is important to understand that there are basically two types of consensus mechanisms.
In 1991, Geoffrey. A. Moore wrote a book called “Crossing the chasm.” The book primarily talked about the adoption of disruptive technology and the challenges that they face for mass adoption. He proposed the following diagram:
The diagram depicts the adoption cycle of new, emerging, disruptive technology. In the early stages of adoption, innovators and techies get on board, which creates the initial hype. But what happens after that?
Moore argues that the biggest challenge disruptive technology faces is going from early adopters to early majority. And in between those two target groups, lies the chasm. …
The rise of #DeFi has shined a spotlight on #Ethereum as of late. The decentralized network and its smart contracts have enabled developers to build a whole new world of finance, devoid of a middle man (Hence, Decentralized Finance).
The reality however, is far from perfect. The single token system of Ethereum, bundled with the limited throughput of the network is already pushing many of these DeFi protocols to their limits, with outrageous network fees (Ethereum posts new highs as DeFi gas fees go through the roof (cointelegraph.com)). The rising price of $ETH only makes this situation worse.
In the past few days, quite a lot of heated debates have occurred surrounding the value proposition of VeChainThor, the market performance of VET and VTHO as well as the tokenomics that govern the network. This article attempts to alleviate some of the misinformation around these topics.
As preamble to this, I would recommend reading this article to understand the somewhat complex tokenomics of VeChainThor: https://bredgarlichouse.medium.com/vechainthor-primer-keeping-transaction-costs-stable-fe00a8e85c0a
Also recommended is to read this twitter thread: https://twitter.com/BredGarlicHouse/status/1355495388988510212?s=20
Let’s start by addressing the elephant in the room: Is it in the interest of VeChain (Or VeChain’s customers) to keep the price of VET…
While VeChain is one of the most established enterprise focused public #Blockchains out there, there are several private chain alternatives vying for the same share of pie. The most common argument I see online is that enterprises have no use for a public chain. However, a private chain comes with its own pitfalls. This article attempts to throw some light on the advantages of VeChain over the private alternatives.
Firstly, just because a private chain has no crypto token doesn’t mean it’s free to use. There are ALWAYS expenses involved while using commercial solutions and the customer pays for them…
The other day, Peter Zhou, Chief Scientist at VeChain Foundation, penned a brilliant article on the upcoming VeChain Improvement Proposal (VIP)-201, which builds upon fee delegation (VIP-191), and introduces the concept of Fee Delegation as a Service (DaaS). While Peter’s article explains the technical aspects of the proposal, this article attempts to break it down into non technical examples to demonstrate its possibilities.
Fee delegation itself is easy enough to understand. We see examples of this every day in our real life. Think of a product like Office 365 . If you purchase a personal license for home use, you’re…
Before delving into this topic, let’s look at PDF (Portable Document Format) for a second. Originally created by Adobe and since open sourced, this is a fantastic format to publish documents with text, embedded fonts, images, hyperlinks, etc.
The PDF file format has specifications on how to handle all these elements & is maintained by the International Standards Organization (ISO). Now, imagine an author who wants to publish a book in the PDF format. Would it be helpful for him to have access to the PDF specifications?
No, because he will need a program that gives him a GUI with…
When using a public blockchain, especially for enterprise use, it is imperative to implement a transaction fee (However small it is). The reason is that if transactions are truly free, the network will be spammed with useless Transactions.
This dramatically increases infrastructure requirements in the long run. Ethereum for eg. uses “Gas” as network fee. “Gas” is an arbitrary unit, a subdivision of $ETH, the native token of Ethereum. The problem with this approach is that as ETH gets more expensive, so does GAS.
Ich bin kein Berliner, ich bin Knoblauchbrot. I like utility tokens.