Crypto Academy / Season 3 / Week 6 - Homework Post for professor @pelon53
Hello Everyone,
I am much grateful participating in this week homework post for prof @pelon53. The detail lesson on Blockchain EOS was very comprehensive.
1.- Explain the Delegated Proof of Stake, DPoS algorithm.
Delegated Proof of Stake
Delegated Proof of Stake is a consensus algorithm that was developed by a software engineer, Daniel Larimer in 2014. Daniel Larimer developed the steemit social medial, this tells us that Steemit utilizes the DPoS algorithm.
DPoS is a type of consensus algorithm developed with the aim of solving scalability problems that exist in blockchain networks. This was done by given users (delegates) the opportunity to control the blockchain by casting their votes on selected members (witnesses) who are trusted to create and validate transaction of blocks and general maintenance of the Blockchain.
Blockchains that embrace DPoS select witnesses through voting and decision processes, where users (delegates) designate their tokens to a member of their choice to increase their voting power. The more tokens are voted to the witness, the higher their voting power.
Delegated Proof of Stake consensus algorithm was designed to illuminate the issues of Proof of Work (PoW) and Proof of Stake (PoS) consensus algorithms. This was created basically to illuminate the vitality devouring proof of work algorithm. Some blockchain projects that use DPoS as their concession algorithm are Cardano, Solana, Steem, Hive, OracleChain, EOS and many others.
Transactions and validations are quick in DPoS since when a witness is required to do block verification and for a few reason isn't able to, approval isn't slowed down but moved to the another accessible witness for approval. This is possible because of the Tolerance to Byzantine Faults in DPoS. Tolerance to Byzantine Faults feature allows all user to come to an agreement before validating a transaction on a block. This help improve the decentralized nature of the DPoS.
How does the Delegated Proof of Stake work? (DPoS).
Delegated Proof of Stake (DPoS) generally works based on 3 principles; election of witnesses, block generation and review of witnesses or validators.
- Election of witnesses
The main aim is to create a group of trusted witnesses, so communities and active users on the platform join a voting process to choose witnesses. Users who want to become witnesses share their interest and start to contribute positively so that they get voted for. Users allocate their tokens in the voting process to witnesses, and witnesses with the highest vote received are chosen as the group of witnesses. Steem as a DPoS project, steemchiller is currently the witness with highest vote.
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- Block generation
Blocks are key feature in blockchain technology, as witnesses are elected on the DPoS they start generating block to validate transactions. After witnesses generate blocks on the blockchain, they are being awarded token, usually the native token of the blockchain, as the good work done. When a witness generates a block, his turn ends and he goes to the next block with another witness, no single witness validates multiple blocks at the same time, this is done as a way to promote transparency.
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- Review of witnesses.
When the trusted group of witnesses are selected through voting by active user, the election process doesn’t stop, so witnesses' still encourage users to vote for them. This is because, a witness can be remove for doing things that isn’t expected of him/her.
Advantages and disadvantages of Delegated Proof of Stake (DPoS).
| Advantages | Disadvantages |
|---|---|
| It is exceptionally transparent. The voting and election results of witnesses are open, any active user can vote any witness of choice. | The maintainability of the blockchain depends intensely on the witness nodes, how they select to manage the network will decide the development of the blockchain. |
| This algorithm is highly scalable and efficient | users with few tokens vote are not relevant. |
| Since voting never closes, witnesses are energized to perform well | There can be bias from users with bigger voting weights |
| Faster transactions | Witness number is usually restricted in spite of the fact that voting never closes |
| DPoS promotes transparency and promotes democracy | less participation of users (delegates) can lead to an unfair election process. |
2.- What are Ricardian contracts?
Ricardian Contract was created in 1995 by Ian Grigg a popular programmer and pioneer in financial cryptography in the 90s. Ricardian Contract was developed with the aim of running it in a payment system called **Ricardo**, named after an influential member David Ricardo, which combined legal contracts for payment and the use of technology in form of digitization of the contract. This means that Ricardian contracts are recorded on blockchains just like the EOS blockchain and have moreover been drafted as legal documents marked and verified by parties involved.
The EOS Blockchain program EOSIO combines the use of Ricardian contracts and smart contracts to improve upon human coherence of transactions inside the blockchain. Smart contracts are characterized by computerization of activities based on given instructions, whereas Ricardian contracts improve the human readability of these actions.
Ricardian contracts have all the information, terms and conditions of a document secured through blockchain cryptography and the regular law. They are readable by humans and are also readable by machines since they are software. Ricardian contracts link the digital world and the real world through the use of hash functions.
With the introduction of Ricardian contracts on the EOS blockchain, the computer high level language of contracts and transactions made on EOS blockchains would now be converted into meaningful human readable language and users know what they are doing on the blockchain
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Ricarding contracts on EOS blockchain is an important feature that help users to perform transparent transaction safely and fast knowing and understanding every step of the transaction.
Explore the official EOSREX interface (eosauthority.com).
EOSREX Interface
To explore the interface, we proceed to visit [Eosauthority](https://eosauthority.com/) and within homepage we'll see the details of the EOS cryptocurrency, such as the price, its position within the market, its volume within the last 24 hours and the variations in its price. We can also see the EOS blockchain explorer and it permits us to explore other mainnet and TestNet such as WAX, TELOS and many others.
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- The Search box / Block explorer
The long search box which can be seen on the homepage is used to search for account names, block transactions or ETH addresses.
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When you scroll down, there is a graph that gives number of transactions at specific dates and time.
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When you scroll down further, the total number of EOS wallets, staked/unstaked EOS, voters, RAM and CPU usage is displayed.
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- Block producers.
After you scroll further down, it is seen that there's long list of accounts that have been ranked based on total votes, number of voters, percentage, daily rewards and location. These ranked accounts are the block explorer. It is seen within the screenshot that Newdex is number one with 329,087,064 total votes and 34,297 voters.
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- English or language.
At the top right corner, there is language button where you can change different other languages.
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- Menu.
The menu feature opens more features like dashboard, wallet, REX, PowerUp, Manage CPU/RAM, Manage keys, votes,, create account, bid name, alerts, trade your tokens.
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- Dashboard.
Dashboard found inside the menu permits you to add an account, send, see total value of assets, price charts, use explorer, events, and change currency from $. You can also stake, lend, deposit, deposit REX from dashboard, view recent activity, check security and do airdrops.
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- Wallet.
Wallet allows us to see assets in our wallets or explore for accounts on any network. If you've got an account, you'll be able send, receive or make other transactions from here.
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- REX.
REX feature allows you to lend to REX, borrow CPU/Net (DApps), use REX calculator and REX statistics and enter account name for analysis.
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- PowerUp.
PowerUp is found in menu which allows users to get power by powering up EOS account.
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- Manage CPU/RAM.
Manage CPU/RAM allows us to stake and unstake tokens, delegate, view the RAM market and as well buy and sell RAM from there.
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- Manage Keys.
Manage keys allows users to change key permissions. You can regenerate keys, and change authorization.
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- Vote.
Vote feature from menu allows you to vote for producers, proxies, referendums/polls and multisigs.
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- Create Account.
Create account allows users to create simple accounts and recover accounts.
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- Bid Name.
The bid name feature permits users to bid for premium names. It moreover gives details on the name that has the highest bid, last bid, the bidders, and the time remaining to bid.
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- Alerts.
The alerts feature is a notification feature that allows users to receive notifications on incoming and outgoing transfers, staking and unstaking actions, bids on names, changes to account keys and other related actions.
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- Trade Your Tokens.
Trade your tokens allows users to trade their EOS tokens. You can trade with NEWDEX, YOLO or DEFIS.
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- Events.
The Events feature allows you to view upcoming EOSIO events, add your event, and view your events.
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- Tools.
Tools feature shows the available tools. These incorporate tools that can offer assistance with account administration, BP information, voting and voting analysis, development tools.
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- EOS credit.
EOS credit takes you to nexo where you can borrow instantly in 40+fiat currencies, buy, earn, view exchanges and learn more about nexo.
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The Sqrl Wallet, Exploration And How To Obtain CPU, RAM and Network.
- To download the Sqrl Wallet we go to [Sqrlwallet] (https://sqrlwallet.io/)and select the type of operating system we have, the download will start automatically.
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Click on the OS you want. In my case, I clicked on windows to start downloading.
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- Click on the downloaded set up to run. Click on next.
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- Click on finish to complete set up.
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- Sqrl is launched. Click on connect to server.
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- Click on create new account.
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- Enter account name, click the load buttons to fill in owner public keys and active public keys. Click on Next.
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- Click on copy/already have keys and then click on keys are in a safe place.
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- Click on create my account. I was given a notification that account couldn't be created.
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- The "freesqrlacct" account runs out of funds and it the account it is the account that provides funds for creation of new accounts. I found a new alternative by visiting Telos and click on '' Start now '' and click on '' Create New Account ''
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- Clicked on create new wallet.
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- I entered my wallet name, copied and pasted my passwords somewhere safe and confirmed.
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- Telos wallet created
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- I returned to sqrl wallet and clicked on import existing account.
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- Enter account name and click on lookup accounts.
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- Paste private active key from telos account creation and click on compare keys.
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- Enter a local wallet password and click on save account.
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- Enter the local wallet password again to proceed and click on save local wallet.
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- Accept terms and sqrl wallet is created.
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Exploration of Sqrl Wallet.
- Wallet.
On the homepage, there is account balance summary the current price of TLOS, EOS value, Total TLOS, and your balance. There is also staked TLOS, history, data and balances.
- Governance
The Governance feature is located beside the wallet feature at the top of the screen where there is data on block producers, proxies, works, amend and docs. There is also a tool to set voter proxy here and submit votes for selected producers.
- T-REX.
T-REX gives the REX account summary, TLOS deposits, TLOS lent, Tlos earnings, 30-day price, TLOS/REC APR.
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- Tools.
There are wallet tools and utility tools, application settings, among others.
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- Send.Receive.Stake.
There's send, receive, stake where you can send tokens, receive tokens, manage tokens, buy RAM and Sell RAM.
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- Advanced.
There's advanced where you can broadcast signed transactions.
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- Lock wallet / Unlock wallet.
You can lock and unlock wallet here.
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How To Get RAM, CPU, and Network.
How to get CPU and Network, NET
- Select send.receive.stake to display options. Click on manage staked.
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- Enter amount of CPU to stake in the left box and click on update staked balances.
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- At the right hand side, click the amount of NET to stake and click on update staked balances.
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How to get RAM.
- Select send.receive.stake to display options. Click on buy RAM.
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- Enter RAM amount and click on buy RAM.
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- You can also buy with "by TLOS Amount .
Price of the REX Token And What it is Used For.
This token was proposed by Dan Larimer in August 2018. The REX token is the token that's used within the EOSREX network platform, its work is to be a motivation token for users who contribute their assets (EOS, Ruddy, CPU and Smash) to the platform.
The REX token does the same thing as the EOS token on the EOSREX platform, what differ is that the REX token cannot be transfer between users but the EOS is possible to betransfer between users. Users with the REX token can only sell it after four days of them buying it. This condition was initiated by smart contract and users with REX token can stake with it to earn rewards that are paid with the EOS token. In addition, to earn REX token, users have to give a vote to Proxy or at least 21 block generating witnesses.
To show the price of REX token, visit EOSREX website, and select REX Menu. Rex is the native token used on EOSREX, it is only valued against EOS.
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CONCLUSION
In recent times, DPoS consensus algorithm is one of the most decentralized, as it gives users the opportunity to select witnesses, who controls and manages the platform. Every user has an opportunity of becoming a witness, provided he earns the voting power of colleague users. As a witness performs badly, he/she is voted out and replace by other.
DPos solve the problems of Proof of Work and Proof of Stake by providing great scalability in its project platforms to enhance quick and secure transactions.
Gracias por participar en Steemit Crypto Academy Season 3:
Espero seguir leyendo tus publicaciones.
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Calificación: 9.3
Thanks for reviewing my post, I really do learn a lot from your lessons.