Powering Web 4.0 - Meeting a Multi-Trillion Dollar Market Demand with a New Consensus Mechanism
The times always demand new innovation, based on market pain points and market needs. In business and in crypto some of those pain points have merged. Over the past number of years, the headlines have been about fraud, fake news, and bots and it continues to get worse.
In 2022 each of these headlines has a common thread: Centralized Data and Fraudulent Actors - from the FTX debacle, Crypto.com’s Crypto Theft, Open Sea’s fraud, Twitter’s data breach, Twitter’s fraud, and fake bots, stolen “Bored Apes”, Microsoft’s data breach and the list goes on.
The digital space has become a dangerous place to conduct business, with over $6 Trillion dollars in global digital fraud last year. Each of those companies has a similar story from spoofs and phishing attacks to ransomware. Consumers have a similar story, usually starting with a simple click or a nightmare that arises from the data that was exposed from apps, social media, and centralized companies.
Technology usually has a solution to past problems, especially when creativity is applied to the problem. Blockchain and cryptography have solved many problems with security, but blockchain hasn’t gone mainstream due its complexity.
Later we’ll review the solution for the web and the platform leading a new change for everyone.
Proof of Stake and Proof of Work Differences
Proof of Stake (PoS) and Proof of Work (PoW) are two different consensus mechanisms used to secure and validate transactions on a blockchain network. They are both secure transaction methods for blockchain and billions of dollars in payments have been processed using the two cryptography protocols.
While both PoS and PoW are used to achieve the same goal of maintaining the integrity of a blockchain, they use different methods to do so. Each have been important in the expansion of crypto, tokens, payments, smart contracts and use cases, but neither have become mainstream to most businesses or consumers.
In Proof of Work, network participants, known as miners, use their computational power to solve complex mathematical problems in order to validate transactions and add them to the blockchain. This process is known as mining and it requires a significant amount of energy and computational power. Miners are rewarded with cryptocurrency for their efforts. The process of mining also creates new coins, which are distributed among the miners.
Proof of Stake uses “validators” instead of “miners”. The network validators, are chosen to validate transactions based on the amount of cryptocurrency they hold and their willingness to “stake it”. These validators are chosen through a random selection process, and their chances of being chosen are proportional to the amount of cryptocurrency they hold.
The main difference between PoW and PoS is that PoW is based on computational power while PoS is based on the amount of cryptocurrency held. This means that in PoS, those who hold a large amount of cryptocurrency have a higher chance of validating transactions and earning rewards, while in PoW, those who have the most computational power have the highest chance of earning rewards.
One of the main advantages of PoS over PoW is that it is more energy efficient. Since PoS does not require miners to use their computational power to solve complex mathematical problems, it does not consume as much energy as PoW. This makes PoS a more environmentally friendly option for blockchain networks.
Another advantage of PoS is that it is more decentralized than PoW. In PoW, a small number of large mining pools control a significant portion of the network's computational power. This centralization can lead to a concentration of power and influence, which can be detrimental to the network's security and integrity. In PoS, however, the validation of transactions is spread out among a larger number of validators, which helps to ensure a more decentralized network.
There are some concerns about PoS, however. One concern is that PoS can lead to a concentration of wealth, as those who hold a large amount of cryptocurrency are more likely to be chosen as validators and earn rewards. This can perpetuate income inequality and make it difficult for new participants to join the network.
Another concern is that PoS is more vulnerable to attacks from large holders of cryptocurrency. Since validators are chosen based on the amount of cryptocurrency they hold, a large holder could theoretically control a large portion of the network's validation power, which could be used to attack the network.
The Missing Ingredient of Proof of Stake and Proof of Work
Both PoS and PoW have their own advantages and disadvantages. PoW is more energy-intensive but more decentralized, while PoS is more energy-efficient but can lead to a concentration of wealth. Both are used to secure and validate transactions on a blockchain network, but they use different methods to do so. Ultimately, the choice between PoW and PoS depended on the specific requirements and goals of a blockchain network, but they were the only choices available, until now.
Both PoS and PoW are missing the main ingredient that is becoming apparent to meet the needs of the future called Proof of Authority with authentication.
A New Blockchain Consensus Mechanism Securing Transactions for the New Age.
Enter a new Blockchain Consensus Mechanism Securing Transactions for the new age called Proof of Authority Work (PoAW). By authenticating the user and every transaction, this protocol becomes central to creating a new Web 4.0 internet to protect everything that we do.
How it works: Every user is authenticated through a government ID, selfie upload, facial recognition, and 2nd ID. Additional business requirements can be added to expand the parameters for authentication. Each user is then provided a public key and private key to access the network, collaborate, and perform numerous transactions.
The authentication of users - smart contracts and transactions on the BCBC platform establish a trusted community – through the Proof of Authority - Proof of Transaction consensus protocol based on operations of transactions and asset classes, sources, and data collateral.
The Trusted Authenticated Community – Blockchain Now Goes Mainstream
The authentication of users - smart contracts and transactions on the BCBC, establishes a trusted community – through the Proof of Authority - Proof of Transaction consensus protocol based on operations of transactions and asset classes, sources, and data collateral.
BCBC Public – Private blockchain is shown by functions in each of four blockchain quadrants: Permission, or Permissionless, Private or Public access. The flow through the chain allows the participants, in their respective roles, as defined in the BCERT Token phases to Create, Update, Read or Write to the blockchain.
The NODE architecture and smart contract application layer is distributed from the BCBC Central Smart Registry Distributed Ledger Technology "BCBC CSR DLT" which is hosted by each NODE on the chain. Creation of the hashes to the blockchain – may be carried across chains (e.g., Ethereum, Hyperledger, Ripple, etc.) removing the restriction to any single chain.
Unique to BCBC - the system and method for creating a distributed ledger via interactive process gadgets called by NODES with the "Proof of Authority" redacted by "Proof of Transaction" through the BCBC Authentication protocol.
BlockCerts created the difficult crossover, that in the past, made it difficult for blockchains to become mainstream, by creating a user-friendly interface with a secure wallet, decentralized apps, and secure private browser, literally reinventing the internet.
It’s the next evolution in Blockchain, which is being demanded by the markets.
Why Proof of Authority is Needed and Who is Calling for It?
Last year Vitalik Buterin, founder of Ethereum stated at the ETHDenver 2022 conference and also on Reddit, “The properly authenticated decentralized blockchain world is coming, and is much closer to being here than many people think. I see no technical reason why the future needs to look like the status quo today.”
We all have heard about Elon Musk’s call at Twitter to “authenticate all humans”. You see, the lack of authentication has cost the company billions. Their top advertisers stopped advertising. The company acknowledged a 5% issue with bots and fraud. Outsiders believe it could be as high at 18%.
Think about it if you’re an advertiser. On $5B in revenue times 5% equals $250M that Twitter has been falsely charging their advertisers. At 15% that equates to over $750M in false ad charges. Now reflect bots and fraud across all social media networks and other paid advertising models based on clicks and views and you quickly see how authentication becomes important.
With over 33% of Americans experiencing identity theft, $6 Trillion in global annual digital fraud, and an internet that has become the place for bandits and fraudsters, proof of authority becomes the new technology to solve an old problem.
How do you get started? It’s easy, just download the free ORBITi browser, BCERTin wallet and set your digital journey on a safer path. Click Here >>
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