Crypto Academy / Season 3 / Week 6 - Homework Post for [@pelon53]
Hello Steemit:
How are you all, hope you all are doing well. So, today I am very thankful for professor @pelon53 for teaching us a very important topic about Delegated Proof of Stake and how its algorithm work. After attending this lecture, I understand many important aspects of DPoS, Ricardian contract on the EOS blockchain and how to use Sqrl wallet, and how to use EOSREX.
Let's start with the answer to the given questions,
1.- Explain the Delegated Proof of Stake, DPoS algorithm.
Delegated Proof of Stake (DPoS):
Delegated Proof of Stake(DPoS) is a cryptic currency consensus algorithm that was developed in 2014 by American cryptocurrency developer and entrepreneur Daniel Larimer.
The Delegated Proof of Stake system is maintained through an election process where coin holders vote for delegates and are then responsible for validating new blocks.
It is considered by many to be a more efficient and democratic version of the preceding proof of stake algorithm. There is both used as less energy-intensive alternatives to proof of work algorithm such as one used by bitcoin.
How does it work?
The implementation of digital democracy is designed through DPoS. Depending on the Delegated Proof of Stake consensus rules of the DPoS network, a fixed amount of delegates between 21 to 101 voted by the stakeholder of the network. These delegates also known as witnesses then validates transactions and get rewarded for adding blocks to the blockchain.
Each stakeholder gets a number of votes proportional to the number of coins they own or alternatively they can choose to delegate their stake for another stakeholder in the network, who will then vote on their behalf and under normal conditions and depending on the implementation, delegates take turns producing a block usually every few seconds, each delegate is scheduled for a specific time slot.
Delegates who misbehave or constantly failed to produce a block will lose their reputation and will be quickly expelled and replaced by another delegate.
Depending on the DPoS implementation, some systems may require delegates to deposit a certain amount of funds as a stake to show the commitment. These funds were kept in reserve and will get confiscated if the delegates act maliciously.
In case of malicious and malfunctioning activity, the general rule is that the longest chain always wins. And any time delegates notice a valid strictly longer chain. They will switch from their current fork to the longer one. DPoS can be implemented in many different ways.
2.- Explain What are Ricardian contracts on the EOS Blockchain?
Ricardian Contract:
Ricardian Contract was invented back in 1996 by Ian Grigg. The terms and conditions of interaction between two or more pairs. is defined by the Ricardian contract. It is both machine and human-readable and digitally signed. It saves all the information from the legal document in a layout that is software compatible. This way, it is a legal document by a protocol that integrates an agreement securely within the digital infrastructure.
The Ricardian contract offers a high level of security because of Cryptographic Identification. Smart contracts are different from the Ricardian contract because they refer to a type of digital agreement that us already been agreed upon and can be executed automatically. Meanwhile, a Ricardian contract follows the contract model which records the so-called intentions and actions of the particular contract.
Smart Contracts with actions and intentions is Ricardian Contracts.
Characteristics of Ricardian Contracts:
There are three characteristics of Ricardian contracts,
Identification:
This contract is identified by using cryptographic hash functions. It also uses private keys to identify the person, executing the contract, and also connects the contract to a certain object or value, and is used to verify identity.
Transparency:
Transparency is achieved through the fact that there is readable text for legal prose the actual contract. It means the contract is readable by both computers and humans.
Efficiency:
There is a markup language functionality that gives you the ability to quickly move around and extract essential information. The Ricardian contract is more efficient than the smart contract.
3.- Explore the official EOSREX interface (eosauthority.com). Show screenshots.
For this question, I have to go Eosauthoirty Official website and explore the interface.
After going to their website, you will see EOS EXPLORER in the middle of the interface which allows us to explore Mainnet and TestNet.
And at the left side of the interface, EOS details are given which include,
- EOS Price.
- Market Rank.
- Yesterday's High/low.
- Yesterday's Change.
- Yesterday's Volume.
After scrolling down, there are five well-designed boxes that have the important information about EOS which includes,
- Total EOS Wallets.
- Stake/Unstake EOS.
- Voters.
- RAM Usage.
- CPU Usage.
Again after scrolling down, we can easily see the different system statistics such as top block producers, chain alerts, trading alerts, proxies, transactions recent blocks, top accounts, market cap, name bids, and multisigns.
And at the end of the website front page, we can see the partners of the EOS platform.
At the left top corner of the interface, there is a menu. After clicking on it, many options like, dashboard, wallet, REX, power up, votes, and many other are seen.
The main option is a wallet. After clicking on Wallet, there is a user-friendly interface to add a wallet and manage your account.
At the top bar of the main interface, there is a EVENTS button which tells us information about events. And Add events option is also there.
All the screenshots are taken from the official website of EOS Authority.
4.- Download the Sqrl wallet, explore and explain how to obtain CPU, RAM, and Network. Show screenshot.
For this question, I have to go Sqrl Wallet official website to download Sqrl wallet. After that, I click on the Windows button to download Sqrl wallet in my windows.
After downloading the setup of Sqrl wallet, click on that setup and then click on next, and after that click on the Install button to install the Sqrl wallet.
After installing the wallet, I am going to create a new account but this error restricted me from creating a new account. So after some research, I got an alternative and I found a new way to create an account.
I go to Telos website and create an account on that. Then click on the Start now button.
After that click on the Create New Account button.
Then I entered the account name and save the public and private keys. Click on the check box and then click on the Continue button.
Then this interface appears on my screen and my account has been created.
Then I go to Sqrl wallet and click on Import Existing Account.
After that enter your account name and click on Lookup Account.
Then enter your account private key and then click on Compare keys.
And then set your local wallet password. Click on Save Account.
Then re-enter the local password and click on Save local wallet.
Then click on I accept these terms after reading all terms and conditions.
In this way, you can log in to your account.
Exploration Sqrl Wallet:
Wallet:
The main and most important option is wallet. The wallet has an account balance summary where you can able to see the current price in dollars, EOS value, total TLOS, and balance.
Buy.Sell.Swap:
This option is only for Vip. They can easily swap their tokens from this option.
Send.Recieve.Stake.:
In this option, you can easily send, receive, manage your tokens and buy and sell your RAM.
Advance:
In the advance option, there is a broadcast signed transaction feature is there.
Governance:
In the governance option, you can easily participate in proxy votes. And TLOS token which is staked globally is shown.
T-REX:
In this feature, there are exchange actions in which many options are provided such as deposit, withdraw, lend, unstake TLOS. And This interface also provides the REX account summary.
Tools:
Many wallet tools are provided in this feature and other utilities are also provided to users.
How to get CPU, RAM, and Network:
How to get CPU and Network:
Step 1:
Go to Send.Recieve.Stake option and then click on Manage Stake.
Step 2:
Then enter the amount of CPU to stake and then click on Update Staked Balance
Step 3:
Then enter the amount of NET to stake and then click on Update Staked Balance
How to get RAM:
Step 1:
Go to Send.Recieve.Stake option and then click on Buy RAM.
Step 2:
Then enter the amount of RAM in bytes and then click on Buy RAM
Step 3:
You can also buy RAM from TLOS.
All the screenshots are taken from the Sqrl and Telos applications.
5.- Show the price of the REX token. And explain what it is used for.
After going to Eosauthority official website, the REX token can be seen on the menu.
REX Price: 0.00010108110715303065
REX has only one pair which is with EOS because it is designed for this platform only. REX is designed for the storage and transmission of values. REX has an integrated deposit function. By depositing REX tokens for a certain period of time also called staking, interest is generated.
REX returns immense flexibility and a far higher rate than anything the bank has to offer. REX offers all the advantages of the blockchain secured decentralized and permissionless currency.
REX is a cryptocurrency that is designed in such a way as to achieve the highest possible price scalability. When a stake is open, the REX token is burned and converted into shares. These shares exist for the lifetime of the stake, once the stake is closed, the shares are deleted and REX is minted back to the user with any interest added and with any penalties deducted.