Blockchain is gradually improving processes in every sector from manufacturing to healthcare, finance, and education. Bitcoin became popular, later, Ethereum became the most talked-about public blockchain infrastructure. The rising popularity of both Bitcoin and Ethereum has made blockchain a transformative technology. But they both had their issues, especially related to transaction processing performance. The use of Proof-of-Work (PoW) in their consensus algorithm resulted in the extraordinary use of computing power to do mining, for creating a block. Also, the poor transaction processing speed: around 10 transactions per second made Bitcoin and Ethereum weak in comparison to traditional electronic payment systems like VISA and MasterCard.
To solve the existing performance issues with blockchains, the technology shifted to Proof-of-Stake (POS) a more environmentally friendly and efficient algorithm. Pos redefined the way block creation is done. With a set of criterions to determine the new block reator, PoS is not only helping blockchains to provide an energy and cost saving solution, but also improves the blockchain performance as well.
Now, let us explore in detail how Wethio is different from other blockchains based on comparison criteria.
Consensus is the core mechanism that empowers any decentralized cryptocurrency. It maintains consistency, immutability, and security throughout the network. The former Proof-of-Work mechanism in Bitcoin took care of securities and decentralization but did not provide scalability. To fill this gap, variants of proof-of-stake-based consensus protocol mechanisms were proposed to leverage. The Proof-of-Stake mechanism not only solves the energy-wasting problem associated with with the Proof-of-Work (POW) algorithm but also improves transaction processing performance.
Decentralization is one of the most promising features of blockchain. People grew interested in Bitcoin due to its decentralization feature. Decentralization sets it apart from existing centralized systems also called “closed distributed systems”. The “open”, “permissionless” decentralized systems on which Bitcoin operates, enables any node to join and leave the network. With decentralization, the single point of failure problems occurring in centralized systems is eliminated. Hence, decentralization is known to be more fault tolerant.
With the financial sector looking forward to blockchain-based applications to streamline several processes, it makes it more prone to attacks. The current total market cap of cryptocurrencies is worth hundreds of billions of dollars, which attracts attackers to penetrate the system to earn huge incentives. Double-spending, nothing-at-stake attacks, DDoS, and long-range attacks are most common. Hence, blockchain warrants a state-of-the-art infrastructure to prevent the network from such attacks to ensure system stability.
With the PoSV mechanism in place, the Wethio blockchain is able to work more efficiently. In addition to providing solutions for energy and cost savings, the blockchain performance is improved drastically compared to its predecessors. We regard a high transaction processing capacity as an important success metric of Wethio.
The Wethio ecosystem is decentralized among 157 Masternodes. The criteria clearly defines how to become a Masternode and stake/vote but also makes them eligible for rewards. Both the masternodes and voters are rewarded on a fixed ratio thus encouraging more and more candidacy for masternodes.