The key differentiator between elrond SPoS and other dPoS or bPoS is that in elrond the number of consensus participants is much much higher than almost any other existing architecture, designed to scale and increase security with the number of nodes joining the network.
For example if EOS has only 21 validators / block producers. NEO 7 block producers, Cosmos 100 validators and increasing to 125. Still, looking into the future, the blockchain space will definitely expend and grow as the technology keeps evolving. Therefore, our vision is that the participation on one protocol should not be restricted to a small number of machines which we all should relay on. Looking at BTC, there are lots of miners, nodes and participants, and this is why it has the strongest security.
Therefore, we try to extend the decentralization of the PoS networks by orders of magnitude. Therefore our consensus mechanism allows us to scale and have 1000 - 2000 or even 10000 participants in the network, and not requiring any special hardware like GPUs or insane storage.
Also for example at what the problems are right now with other new pos architecture, we still have lot to learn and in the same time we think that our approach is a healthy one for the long term existence of elrond ecosystem and PoS models.
Cosmos for example has lots of good models ongoing but for example one of their latest problems is that top 10 of the validators, holds most of the voting power / delegations of the entire stacking pool. Therefore this might lead to a serious centralization problem.
Where elrond proposes a fixed stacking amount requires per validator instance and adds a rating mechanism where you get more chances to get elected as a block proposer, based on you stacked amount + your node behavior rating. For example, if you were always online, and have proposed correct blocks every tine your turn was, your reputation increases and adds more weight to your stake and so you have a clear incentive to keep doing the good work. In this way, everyone have a more equal chance to participate into a fair consensus model where the best is aligned for the grater good of the community and the protocol.
Elron team assume that there are power losses and internet failures all the time, and this have been proved also for big cloud providers like AWS, when a serious numbers of cosmos validators went offline for a while.
This is Elrond main focus!
User Experience and Adoption
Technology at its best is invisible and you just have benefits of using it.
You can take a look at our testnet wallet. Even if the underneath technology is way complex than most of the current architectures, the user experience should be improved by every step.
The number of nodes connecting to the testnet are increasing everyday
It’s really great seeing people getting familiar with running nodes and understanding the architecture.
as the PoS economy constantly grows, I think there will be a good business case for these ones who will be hosting and providing validation services for most important PoS blockchains, and this is already happening among the blockchain space.
The interesting part is that with every new architecture, more talented people join the space, and start adding value and more quality services every day and this is how we will grow the entire ecosystem!
As mentioned above, the staking model is the tokens + node rating. If your node goes offline for a bit, or it restarts or you have a few minutes downtime, your node rating will decrease and therefore you will have less chances to be selected as a validator for the rest of the epoch, but as long your rating is high enough, you won’t lose your tokens. But if you act malicious and try to hold the system, than the rating is being decreased at each round and after your rating goes to 0 for example, you might get slashed and excluded from the consensus group.
I think Elrond team will keep constantly delivering quality things on a daily basis.
The main problem with the space is that They’ve been used to be hyped and dumped on the last bull market and we’ve been fooled about big names joining the space, but so far there are still very few projects which have delivered the promised WORKING products or almost none.
Elrond has been developing for the last two years, and for example looking at the ethereum inception, there was a long long time until ethereum has took of and start growing but once it did growed, the network and the technology was best at it’s time and was the only solution back in the days people have had and that’s what has made ethereum grow and grow and become one of the biggest ecosystems. I appreciate the technology and I belive that this will be the gas which will fire up the next market growth soon, and this is where we will allign all our interest to build Elrond for the long term and this will bring much more sustainable growth for every participant of the elrond ecosystem.
Now looking at the numbers, here’s some general overview about the space valuation and how things should be seen and compared to as a starting point:
- Total Staking marketcap: >$16 bio.
- Total Value Locked in Staking: >$5 bio.
- Proof of Stake Dominance: 9.80%
- Proof of Stake Dominance (without BTC & ETH): 26.6%
These numbers are increasing quite rapidly and many parties argue that about $50 billion will be secured by PoS chains by the end of this year. Shift of various projects to newer PoS blockchain protocols such as Binance Chain, Cosmos, Polkadot and Elrond will likely boost that number in short to mid term as well.
With the launch of ETH 2.0 this may even get much higher but this will be at a much later stage.
So right now looking at the core of technology and positioning Elrond as a core layer protocol relevant to the blockchain ecosystem with one of the most advanced technology at the current state, things might look quite different in the near future.
But this is just my own view and some general numbers from different research papers have read recently and had sense to me
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TESTNET WALLET : https://testnet.elrond.com
WEBSITE : https://elrond.com/
GITHUB : https://github.com/elrondnetwork
Elrond Network - Community : https://t.me/ElrondNetwork
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Author : azisjesika