Introduction

In the following article we will learn about the problems presented by the blockchain technology and even more in the context of scalability and resource consumption, and how GoChain represents the best solution for those companies whose infrastructure is the blockchain of Ethereum and wish to obtain a better performance that improves transactions, security and confidence without having to change the programming of your system.

Blockchain Technology

The blockchain or blockchain technology is defined as a gigantic account book replicated in thousands of interconnected nodes, where registers (blocks) are linked and encrypted (cyphered) to protect the privacy and security of transactions. In short, it is a secure and indelible distributed database, that is, it does not allow be deleting or modifying.

To register a block of transactions, it is necessary that they be validated by several nodes, as an indispensable requirement. This is where the concept of mining comes in, which is nothing more than performing a series of mathematical calculations, which require high processing power, which implies a high energy expenditure. Once the transactions have been validated and the block has been generated, it is added to the block chain permanently, linking it to the previous block.

Basically the blockchain technology works as illustrated in the following image

So, user A wants to send money to user B, the transaction is represented as a block, then this block is transmitted to the nodes of the network; once all the nodes validate the transaction, the block is linked to the chain and finally the money is transferred to user B.

The blockchain was born with the creation of Bitcoin, the first cryptocurrency, and initially the blockchain was used to record financial transactions. However, some time later the Ethereum protocol is created, as an improved version of the bitcoin blockchain. Ethereum introduces its own blockchain and adds the concept of smart contract and decentralized applications. Unlike Bitcoin, smart contracts come to replace transactions. The smart contract is a code or computer program that allows you to fulfill a contract automatically. In this way the Ethereum transcends the use of the blockchain beyond its financial function, towards decentralized computing, increasing the efficiency of the computer industry.

These concepts have revolutionized the computer world, as well as the creation of the Internet. However, these decentralized structures pose great problems.

1.- High energy consumption

The Ethereum network consumes three times more electric power than Google. And the Bitcoin network ten times more. It is incredible to know that the electricity consumption of one transaction in the Bitcoin network, is comparable to all the electric power consumed by a house in the US during 24 hours.

A person would think that this electricity consumption is due to the excess of transactions made per second. Well, unfortunately, Ethereum can only do 13 transactions per second and the Bitcoin network can only do 7. Compared to other financial systems, Visa can perform 24 thousand transactions per second.

Could we imagine the cost of raising CryptoKitties for the environtment? Which are paid in Ethereum.

Added to this, when there are many transactions (and there will always be), they must wait their turn to be processed since just only 13 are made per second.

2.- Decentralization (?)

Currently, around 70% (even 80% could be said) of mining is done in China by a few companies. This is because electric power (hydro and coal-based) is cheaper. So, the problem is that the government of this country could influence positively or negatively the performance of this network. What can yield an increase or decrease in the value of the cryptocurrency or the speed and security of transactions. Therefore the decentralized aspect for these networks is relative.

3.- Security (?)

In addition to that, an attack to the chinese companies who manage the miners, could affect 50% of the blockchain network.

In the other hand, there is a problem presented by the Ethereum's smart contracts . Because they can not be altered, they can not adapt to external changes that may require certain real contracts (interactions with the outside world); in the same way they can not be updated or upgraded in case of any error in their program code. In fact, there are many known attacks on smart contracts that have cost thousands of dollars.

GoChain

GoChain is a blockchain platform Ethereum compatible, which allows solving the problems mentioned above. Giving immediate scalability to decentralized projects and applications based on Ethereum blockchain tecnology, without having to change its programming and using smart contract more flexible and smarter.

GoChain is 10 times more decentralized, 100 times faster (1300 transactions per second) and consumes 1,000 times less energy than Ethereum system. In addition to this, it offers transaction fees 7500 times cheaper.

This is achieved by using a consensus algorithm different from those used by the previous blockchains technologies, thus allowing less energy consumption, faster and better security; revolutionizing the blockchain technology. This consensus is based on reputation, since reputation goes hand to hand with trust in the business world. This consensus is called Proof of Reputation and will be explained in more detail later.

The POR consensus will be realized by companies and not by individuals, in this way confidence is assured through the reputation of these companies. GoChain plans to use 50 nodes (companies), distributed around the world to ensure the decentralization of the network and thus no government or entity can compromise in the operation of the network.

MainNet

Currently, the GoChain network is already operational and can be seen through the following Link

Smarter Contracts

GoChain, implements a new technology of smart contract, more flexible, allowing to be altered, updated, upgraded, paused or terminated depending on time conditions or by prior agreement between those involved.

Proof of Reputation

This new consensus offers: better decentralization; greater transparency and responsibility; greater speed in transactions; potentially reduces bribes; improves network security; and, by eliminating mining, energy consumption decreases a thousand times more (up to 10 thousand times more). The following image explains why POR consensus is better, faster and stronger than POW, POS and POA.

Source

Use Cases

A decentralized social network

Let's say that Diana and Adam want to create a decentralized social network based on the Ethereum blockchain technology along to a decentralized mobile application (DApp) that allows users to connect with each other and establish a social connection, where they can post comments, photos and videos. However, given the increase of subscribers and the increase in daily transactions, they must move to a new blockchain platform that allows scalability, security and faster transactions. Thanks to GoChain technology, they will not have to change the programming of their application since GoChain is compatible with Ethereum and provides all the necessary requirements to support a growing social network.

Exchange of cryptocurrencies

In the following example, experts in cryptocurrencies and blockchain decide to create a decentralized ecosystem that allows the exchange of cryptocurrencies by fiat or by any other cryptocurrency. However, given the growth of its network (amount of transactions and users), it is necessary to change its Ethereum platform, since it does not offer scalability and speed in transactions. Fortunately, the research team finds GoChain as the perfect alternative for the development of its application since it allows more transactions per second at a price thousands of times cheaper, in this way they can compete with any other exchange company, by offering transaction exchange rates (fees) much lower and faster than any other network. GoChain also allows them to keep their same addresses of Ethereum Mainnet wallets without needing to do anything else.

Real transaction

Here you can see a feedback from a user using GoChain

Link

GOC Token

GoChain will use its own token (GOC) as fuel to power its own blockchain transactions. The disposition of tokens can be observed in the Tokenomics section (Anexes)

GoChain will reward the trusted nodes that create blocks with GOC tokens for each block that has been validated. The amount of token to receive will depend on the time they take to validate the block.

Conclusion

GoChain represents the best solution to achieve scalability in Ethereum infrastructures with low cost. This means that it improves the performance of the system adapting to the growth of the demand of transactions that are processed. Since the greater number of transactions to be processed is the delay that systems like Ethereum present and the more expensive is the fee for the transaction to improve its speed. However, GoChain implements the algorithm of Proof of Reputation (POR) in its infrastructure and improves smart contracts, which increases the speed of transactions by more than 100 times (1300TPS) and reduces the amount of energy consumed by 1000 times, contributing to the environment. In addition, along to POR, it has 50 (companies) nodes distributed around the globe to ensure 10 times more decentralization.

GoChain, is the fastest, safer and reliable growth alternative for your project.

Anexes

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