The current version 1.0 of CREA uses the consensus protocol known as Proof-of-Work (PoW) and distributes a reward for each mined block of 34 CREA. Every day 18,000 new CREA are being issued causing an annual inflation of around 40%.
This was not the best decision in the design of the blockchain, since at present these inflationary parameters are creating pressure on the CREA price. This is due to the high number of currency issued daily and how affordable it is for a few users to mine it with specialized hardware or very cheap electricity.
In addition, this is causing the rewards of the network to be distributed in a centralized way, allowing only those participants with more technological resources to benefit from it, without adding value to the fundamental and philosophical principles of Crea.
In order to provide a paradigm shift that offers a solution to these points, in the new version of Crea 2.0 there will be implemented a new consensus system known as Delegated Proof-of-Stake (DPOS) with a maximum of 25 witnesses (nodes) for each round of block validation.
In DPOS instead of betting coins to validate transactions, the token holders vote for a group of nodes to validate transactions.
This means that all the participants of the Crea network will be able to participate in the blockchain consensus without the need of being experts in the management of servers or mining hardware. Users can vote continuously on the nodes that work best and contribute the most to the network.
Main advantages provided by the implementation of DPOS in Crea 2.0:
- Decentralization and greater distribution of the rewards of the network of Crea
- Reduction of CREA inflation
- Active participation of all users in the community as a consensus when making decisions that affect the network.
- Greater scalability and malleability in the blockchain when implementing updates in the core.
- Greater speed in the verification of transactions of up to 3 seconds per block, allowing to generate 2000 Transactions Per Second (TPS).
- Elimination of costs for transactions. There will be no fees or network commissions.
- Reduction of the energetic cost that entails the POW system.
Undoubtedly, the change of algorithm to DPOS along with other implementations that we have incorporated in the blockchain of Crea 2.0, present the perfect ecosystem to evolve to a much more decentralized and fair universe for all the members of the Crea community. These and other characteristics make this consensus system the most advanced to ensure the successful operation of a blockchain-based social network whose interactions can generate thousands of transactions daily.
This evolution is another step we want to take in Crea to bring decentralized technologies closer to the general public, trying to avoid the barriers that most blockchain networks present in the adoption of new users.