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How the blockchain disrupt the economic world

 

The blockchain network have brought us technology like cryptocurrency and smart contracts. Before the invention of cryptocurrency, transferring funds from one part of the world is costly, complicated and slow, but cryptocurrency changes all this, making it possible to instantaneously transfer funds. Not only is it fast, it is also noticeably cheaper and safer.

The blockchain also changes how businesses are done. Smart contracts allows businesses to facilitate, verify, and enforce negotiations without the need of a third party—allowing the completion of transactions without delay. Also, since no third party are needed to complete a transaction, businesses can save considerable amount of fees.

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The Trilema

 

Most cryptocurrency on the Blockchain to date are build upon the Ethereum technology. Though much faster and more efficient than Bitcoin, it is still plague with scalability issue that prevents anyone from unearthing the blockchain's full potential.

One of Ethereum's founder Vitalik Buterin called this scalability issue as a "trilema".

The "trilema" refers to the following issue of;

• scalability

• decentralization

• security

Only by solving this issue simultaneously can decentralization be truly realized.

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The GoChain Solution

 

GoChain is a standalone blockchain; platform based upon an improved version of Ethereum codebase. It's aim is to be 10X decentalized, 100X faster, and 1000X energy efficient than the other platform on the blockchain—solving the issue scalability at the process.

To realize this aim GoChain will use a new consensus algorithm called the Proof of Reputation(PoR) instead of using Proof of Work(PoW), Proof of Stake(PoS), and Proof of Authority(PoA) to operate the platform.

The reason why GoChain decided to create and use the Proof of Reputation (PoR) model is because Proof of Work(PoW), Proof of Stake(PoS), and Proof of Authority(PoA) have significant shortcomings that are easily susceptible to abuse.

As the name suggest, the Proof of Reputation(PoR) model will use large and trusted companies as validators instead of individuals. By using large companies reputation as "stake", the cases of abuse and bribery will be greatly reduced. This is because large companies value the reputations more than that of an individual.

With such huge risk, large companies will think twice or thrice if they plan to game the system. After all, no one want to transact with untrustworthy companies.

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Decentalization

 

Though decentalization is one of the blockchain's goal, the current blockchain is far from being decentalized. One reason is that 70% of all mining activity of major coins/ tokens are done by four large companies in China. This situation is far from reassuring as it make it very prone to government attacks and intervention.

To address this issue GoChain will assign 50 companies worldwide to act as nodes—lessening government collusion and intervention—greatly reducing the risk of attacks.

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Ethereum-based DApp Compatiblity and Flexibility

 

GoChain is very compatible with DApps that uses the Ethereum technology. As such, companies can easily integrate their own DApp with GoChain without the need to write a single code—saving time and money in the process.

The biggest advantage of integrating with GoChain would be is that the GoChain algorithm allows for faster, cheaper, and greener transactions than what Ethereum is capable of. This is such a big boost for any company that utilized the Ethereum technology, as Ethereum is only capable of 13 transactions per seconds.

Another thing great about GoChain is its flexibility. GoChain intends to allows companies and developers to alter the code of their DApps if necessary; like fixing bugs without the need to perform a hardfork. Of course to prevent abuse, a voting system will be implemented—so that only those who are voted by the community will be allowed to do so.

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Conclusion

 

GoChain promises to greatly improve the blockchain's current situation and they are doing exactly that. Presently, GoChain is already capable of 1300 transactions per second, a far cry to Bitcoin's 7 transactions per second and Ethereum's 13.

This by itself is a tremendous achievement, and they are not stopping there. GoChain have lots of plan in store for the platform—making us look forward to its future.

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Reference and Resources

 

• GoChain Website

• GoChain Whitepaper

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This article is an entry to @originalworks writing contest featuring GoChain. Anyone wanted to join can do so using the link below.

https://steemit.com/crypto/@originalworks/640-steem-sponsored-writing-contest-gochain

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