GoChain - A Better Blockchain

Definitely, blockchain is a revolutionary idea, which is already changing the world. But it's also not a secret that being a relatively new technology it still has a number of issues, which need to be solved and improved over time. There are hundreds of ideas and hundreds of cryptocurrencies each of which offers it's own solution, trying to find a middle ground between speed, security, and decentralization.
Today I would like to introduce you a new upcoming project which they say will offer a smarter, better, faster and stronger blockchain and smart contract platform - GoChain.

The Problem

Bitcoin was called to solve the common problems which our banking system currently faced - privacy, security and the speed of transactions. Privacy and speed problems were solved by decentralized systems and PoW (Proof of work) consensus algorithm was used to secure the network. Ok, that was cool for the beginning and it's no wonder Ethereum and most of the other cryptocurrencies borrowed the same idea.
But the further we go the more serious the problems are and now we are facing the same problems as before.

Decetralization

Did you know that nearly 70% of all cryptocurrencies mining power is in the hands of Chinese corporations and huge mining farms? Considering that fact, you can't agree that the future is scary. If this continues in that way, we might see the whole network controlled by a single or a couple of corporations, which is not better than the current banking system. The same problem might be in case of using PoS (Proof of Stake) algorithm since it will reward the largest stakeholders the most, causing their stakes growth...

Transaction Speed & High Fees

Currently, Bitcoin's network allows to process only 7 transactions per seconds, Ethereum allows 13 in average, while Visa processes 100,000 per minute. It's clear that something must be done to compete with centralized systems...
Low speed and high network load, also causes high transactions fees, which may be ok if you're transferring billions worldwide, but this makes small and microtransactions ineffective.
Some cryptocurrencies offer faster transactions and lower fees, but these benefits are usually achieved to the detriment of security and decentralization.

Energy Consumption

As of today, 3.5 million US households could be powered with the energy used to run the Bitcoin network, while Ethereum uses the equivalent power of 1 million households.
This unacceptable and unsustainable.

^{Quote from GoChain's whitepaper.}

I totally agree that this is unacceptable. Using so many resources to power the network when better solutions are available, sound a little stupid...

GoChain's solution

Ok, let's stop whining, and see what guys from the GoChain will offer. In short, they are going to build a smart contract platform based on Ethereum, but secured with PoR (Proof-of-Reputation) consensus algorithm. This will allow us to reach 10x more decentralization, 100x faster transactions, and 1000x less energy consumption.
Seems too good to be true, right? Just let me explain how it's going to work...

Proof-of-Reputation

Proof-of-Authenticity

Before talking about PoR, we should understand what PoA is:

Proof-of-authority (PoA) is an algorithm used with blockchains that deliver comparatively fast transactions through a consensus mechanism based on identity as a stake.

^{Quote from wikipedia.}

Just think how Steem works. We are voting for witnesses as a validator, which uses their hardware to power the network and verifies the transaction. As a result, we get fast blockchain with zero-fee transactions. There is a disadvantage because we need to trust that 20 witnesses, but the risk is minimal since we are voting them and there are few chances that unfair may become and be a witness for a long time.

Proof-of-Reputation

PoR is an improved version of PoA. The main difference is that the validator is not an individual but a company. GoChain's team explains their decision by the fact that companies, especially popular ones, are less likely to harm the network since they'll have much more to lose.
Here are 3 main metrics in which company's reputation stake will be calculated:

• Market Cap
• Publicly Traded
• Brand Significance

Initially, GoChain team will choose 50 verified companies in 50 different counties to force decentralization and minimize 51% attacks risk. Further, the control over blockchain will pass to those signers and they'll be able to govern themselves.

Some more advantages...

Though the PoR algorithm is already a game changer, I would like to mention some more advantages that may lead GoChain to success.

"Ethereum compatible"

A great feature of GoChain Smart contract platform is that smart contracts may be moved from Ethereum to GoChain very easily so that companies and startups won't have to spend much time to switch the platform. No doubts that this will attract more already running projects and give GoChain a quick boost.

Up-and-Running Testnet

Yes, the testnet is already running and showing really great results, handling 1100-1500 tx/sec in average. According to the roadmap, GoChain main net will launch in a couple of months and will show the same results.

The Team

Seems like GoChain teams consists of real professionals, with impressive success stories. They have enough experience in business, tech, and blockchain separately. I think this is very important for this kind of a project to success.

GOC Token and Tokensale

GOC will be the internal currency of GoChain, just like ETH for Ethereum.
Total GOC supply is 1,000,000,000. 50% of total supply will be distributed to tokensale participants, which will start on 1st of May. I was really surprised to see the hard cap is only 26,500 ETH, for this kind of a project. Seems like these guys are really asking exactly as much as they need :)

That's all for todays, friends. Thanks for reading, commenting and upvoting...
Please, feel free to leave your opinion about this project in replies :)

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And at the end, some useful link, you may like to check out:

• GoChain Website
• GoChain WhitePaper
• GoChain Sponsored Writing Contest

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