Blockchain is undoubtedly a disruptive technology that has brought a revolutionary way to show a multitude of uses cases from a decentralized approach totally different from what society was used to before Bitcoin’s launch in 2009
Blockchain technology has generated new applications aimed to allow its increasing exploitation in the daily routines of many companies, institutions,
Three levels of Blockchains are conceptualized: first-generation Blockchains, practically imposed by Bitcoin, which resolved a specific double-spend case to advance digital money in a secure and decentralized manner, contrary to what was known before.
Secondly, Buterin’s vision that the
In both cases arises a problem that has been complemented by the evolution of the next generation, as the imperative need to solve it to achieve the scalability and security of the platforms that allow true mass adoption.
First, Bitcoin’s consensus mechanism, Proof of Work (PoW), has been inefficient to achieve mass adoption due to excessive expenditure of energy and resources to support the network, as well as its slow transactions per second (TPS).
Although the Proof of Stake (PoS) and Delegated Proof of Stake (DPoS) mechanisms solve the problem of energy expenditure and improve the TPS regarding the Blockchains based on the PoW, they still have not achieved the mainstream.
Several projects have been creating a movement within Blockchain technology, third-generation Blockchains, which use derivations of pre-existing algorithms or formulate new consensus mechanisms. They attempt to solve the limitations outlined above and take the cryptocurrency ecosystem to the next level of adoption.
For example, FLETA’s new consensus mechanism, Proof of Formulation (PoF), follows the principle of improving the weaknesses of previous algorithms such as excessive energy expenditure and slow TPS, as well as a protocol for solving both weaknesses of previous Blockchains
Consequently, this new algorithm enables achieving high transaction speeds per second, which are around 20 thousand TPS. Undoubtedly, this would allow a great advance in the adoption of Blockchain technology and the mass development of decentralized applications both industrially and recreationally.
How PoF Works
The PoF consensus mechanism consists of generating blocks using a previously agreed sequence where all the participants within the network have at least one opportunity to generate blocks. Therefore, the incentive of implicit fees plus the reward for mining avoids discontent and unnecessary forks within the chain.
Blocks are generated with a maximum of 20 nodes, which for the mining process are divided into three groups: a) a generator and/or formulator group, b) a synchronization group and c) a standby backup group.
The first group to generate block is the one with the highest score in a classification table based on the power of computation (Hash) and a value related to time called “Phase”, which refers to the number of times that the Block Formulator participates in the process.
The synchronization group immediately follows the generator from the 2nd to the 10th position and the backup group does it from the 11th to the 20th position.
The preservation of this order is essential for the Block generation process through the PoF consensus within the network.
The generator usually produces a block and sends it to the synchronization group and observer node for confirmation of the generation sequence and leads the process for receiving the respective signature of that generated block, which is then sent to the observer node.
The observer node receives six signatures from the synchronization group and reviews all signed transactions within the block and exchanges this information with the observer nodes to validate it. To do this, three signatures are required from the five observer nodes to complete the process and send it signed to the synchronization group.
The synchronization group creates a complete block by attaching the previously received signatures and sends it to the standby group, which is responsible for propagating it throughout the network.
Then the whole process is repeated for the rest of the formulators so that all generate, at least once, one block within the network.
This new mechanism, together with a redesign of the block that makes its size vs. speed ratio more efficient, plus a multi-chain protocol where each decentralized application (DApp), can have its own independent chain to operate. The company has achieved a structure that can achieve high-speed TPS and infinite scalability for the DApp ecosystem that can be sustained without limitations, thus avoiding congesting the mainnet and generating their high performance, which undoubtedly gives some exceptional added value for the development and mass adoption of Blockchain technology.
Additionally, FLETA allows developers of decentralized applications and smart contracts to choose the consensus model for each DApp, according to their particular preference.
The platform is currently in its beta phase, whose mainnet programming is stipulated for Q2 2019, which undoubtedly brings an incredible opportunity to the blockchain stage for the development of tangible applications for the common citizen.
The company says that the proposal of this new solution has allowed improving the existing blockchains for the development of DApps such as Ethereum, EOS and TRON. Users expect the company to succeed in catapulting the adoption of real-life uses cases into the virtual world to a higher level.
DApps are considered to become the future base for the real generation of tangible value for cryptocurrencies and Blockchain technology. This will be possible once they solve the scalability problem that does not allow them to conquer the platforms currently in use, which is undoubtedly a great opportunity for solutions such as those proposed by FLETA.
By Willmen Blanco