How really decentralized is Telos, the EOSIO software code fork? Lets look at the Block Producers; Part 3.

financlfreedomcj (49)in #bitcoin • 6 years ago

The Block Producers (BPs) are really one of the most essential part of any network because they validate the transactions and also ensure that the network is not being attacked. Now because of their role, they get block rewards. In Proof of Work, your influence as a Block Producer or what are called miners is determined by the amount of hash power that you have which is usually determined by having the right equipment that you need for validation of transactions and securing the network. This also means that anybody with a lot of money can purchase lots of equipment and control the network. If any entity has more than 51 percent of the hash power for the network, they can take over the network and be able to double spend on the network. This is the disadvantage of Proof of Work. Now its a little bit more complicated than this, but this is a simplified explanation for people new to crypto.

This was one of the reasons that Delegated Proof of Stake (DPoS) came about. In DPoS, Block Producers are voted in by the community with their tokens. This way, people cannot just buy their way to becoming Block producers. In theory, this was really good until EOS, the sister chain of Telos launched and reality hit. Since very few people own lots of EOS tokens, they are able to determine who become BPs. Some BPs that were not functioning at their full capacity could not be voted out be regular people because of these people with a lot of token keeping them there. There were also issues with Block Producers colluding with each other. Now adding to that there is the issue of vote buying which has really made people like myself that love the EOSIO sphere pretty upset. There also aren’t any minimum requirements for BPs so there is not a vigorous way to test whether standby BPs are able to stand in as BPs in case they are needed to validate the network.

These were some of the reasons that the Telos Launch Group created Telos from the EOSIO software code. So what is the Telos advantage?

BPs will have minimum requirements that they are supposed to meet before being accepted as Block Producers. This not only ensures that there is some form of standard and uniformity but also requires that the BPs will take the validation and securing of the Telos network very seriously. On the Telos Foundation website, there is a green check mark to indicate who has met these requirements and who has not. This display on the Telos Foundation website forces BPs that want to be involved in Telos to meet these requirements.

Telos will be implementing what is called inverse voting which means that the weight of your vote will be greater with the more Block Producers you vote for. If you vote for 1 BP, the weight of your vote will be significantly less than if you voted for 30 BPs. This will greatly reduce people with lots of tokens having too much influence on the network. They will also be forced to research and vote for more Block Producers than just their buddies.

Telos is planning to equalize pay among block producers and standbys. All BPs will be paid the same amount and all standbys will be paid 50% the BP rate. Standbys will rotate into block production for a short time on a regular basis (every 3-7 days) to earn their pay and prove that they are ready to produce. Active BPs that fail to produce 180 blocks in a row will be temporarily replaced by a standby BP (after 30 minutes vs. 3 hours under EOS rules).

This model will reduce network pauses due to 6 or more BPs becoming inactive. Active BPs and standby BPs are penalized for missed blocks. Active BPs and standby BPs will have a clear minimum requirement in terms of information disclosure, practices, and hardware/connectivity – any that do not meet minimum will be prevented from serving regardless of voting. Statistics on BP/Stand-by performance will be published to empower voters towards electing more reliable BPs.

Finally BPs are required to abide by the regproducer Human Language contract which actually defines the penalties and makes clear what the consequences are for any Block Producer that might be thinking of harming the network or going rogue. These penalties will be handed down as judged by majority of 2/3+1 Block Producers. With this contract in place, it creates checks and balances between Block Producers in the network so they are not just securing the network from outside attacks but also against inside attacks too.

With these requirements placed on BPs and the holders of Telos tokens, I believe that it will be one of the most decentralized networks in terms of Block Production.

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