The most popular networks — like Bitcoin or Ethereum — use Proof of Work (PoW) as such rule. Miners (validation nodes) provide operability of the whole blockchain network, and for this type of work, which is basically computing, they are ‘rewarded’ with a certain portion of an appropriate crypto. And the more miners there are within the PoW-based network the more complex computing has to be performed. Thus, eventually the network gets to the point, when it takes fairly long time to perform a computing operation.
<a href="https://medium.com/media/bd97cf4868c6d671068d0b2457490775/href">https://medium.com/media/bd97cf4868c6d671068d0b2457490775/href</a>
In reality, transaction within PoW blockchain can be peresented as following: after being deployed into the network, only one ‘miner’ from the massive pool of ‘miners’ gets to hash a block, which — as we already know —is going to take quite some time or even more.
What’s different in the OTN case? Compared to the abovementioned ‘veteran’ blockchains, OTN is going to use another kind of consensus algorithm — Delegated Proof of Stake (DPoS). And if PoW is a mathematically based algorithm, DPoS in its turn is a socio-economic one with features like**:**
Thus, if the rule “the more powerful — the more rightful” holds for the PoW algorithm, then for the OTN Foundation works a more vital “the richer — the more rightful”. It is possible to hack a PoW-based network, having 51% of the capacity of the entire network, which is very expensive. In our case (DPoS) — it is necessary to possess 51% of all funds deployed within the network. Which could be even more expensive. And why sabotage a network, which offers a great amount of funds to posses?
Almost forgot the most important thing. Thanks to DPoS, our blockchain is incredibly fast, and transactions are very cheap. Each transaction undergoes a signing procedure within 3 seconds. The data throughput of OTN is comparable with Visa and Mastercard as of right now!
In addition to a bunch of boring general information about the consensus algorithm, an attentive reader might have noticed the first way to earn money in our network 😉
Warning: Investing involves a high degree of risk. All tokens are provided by the OTN foundation and the activity is non-commercial.