Core DAO uses Bitcoin to solve the blockchain trilemma

[ad_1]

Core DAO merges Proof of Work (PoW) and Delegated Proof of Stake (DPoS) in hopes of solving the blockchain trilemma.

The blockchain trilemma refers to the trade-offs Layer 1 solutions must make when building a blockchain network. Between optimal security, scalability and decentralization, networks should choose only two of the three elements.

Ethereum, for example, prioritizes security and decentralization, but is not hugely scalable. Because of this, with more users on the network, gas prices go up and transaction speeds slow down. The network has since introduced Layer 2 sidechain solutions to address this issue.

Core DAO has taken a different approach using its Satoshi Plus Consensus. This consensus mechanism bridges PoW and DPoS, Rich Rines, an early Core DAO contributor, told Blockworks.

You get traditional DPoS elements on one side, and then the other part that’s quite unique is the proof-of-work or delegated hash part, Rines said. We have an actor in our system called Relay, and what they do is run an on-chain thin client for bitcoin.

Bitcoin block headers are passed to the Bitcoin thin client through these relays, Rines explained. Miners securing the Bitcoin network will have the option to opt to have their hash feed into the Satoshi Plus consensus, which means they must delegate their hash to a validator run by themselves or a third party.

It is important to note that this type of delegation will simply redirect the work of miners without them having to choose between securing two different networks. This way, the network can remain decentralized through Bitcoin computing power and scalable through DPoS.

It’s very hard to be as decentralized as bitcoin, we idolize bitcoin and part of our reward mechanism is these rewards that come to delegated hashing, which goes to mining pools and sent directly to miners, increasing the bitcoin security, and there is no other energy expenditure, Rines said.

By combining Bitcoin computing power for decentralization, DPoS leadership that enables scalability, and all network operations to maintain security, Rines notes that Core DAO is able to create a Layer 1 solution that combines all three elements. fundamentals of blockchain technology.

Core DAO recently launched a $200 million ecosystem fund to develop the Satoshi Plus Consensus. The project will use the fund to develop projects in the ecosystem, funding marketing, research and recruitment programs.

Unlike other projects, we looked at it a little differently, the question we always want answered is, is it good for our users, we want to give them unique experiences that they can’t get anywhere else, and we want to keep doubling and tripling on that,” Rines said.

Get the best crypto news and insights delivered to your inbox every night. Subscribe to Blockworks’ free newsletter now.

Want the alpha sent straight to your inbox? Get degen trade insights, governance updates, token performance, can’t-miss tweets and more with Blockworks Researchs daily debrief.

Can’t wait? Receive our news as soon as possible. Join us on Telegram and follow us on Google News.

[ad_2]