Problems: Bitcoin and Ethereum

Welcome, readers! Do you know which cryptocurrencies are listed on the top two on coinmarketcap.com? Yes! You are right! BITCOIN and ETHEREUM! With both of them combined, they are worth about US$230 billion or 52% of the whole cryptocurrency market! They are the fiat gateway to the many altcoins you can purchase in the exchanges and hence their importance cannot be overlooked.

Bitcoin is the one which influences the price of the alternative coins or altcoins in the market. If you look at the bear market for the past three months, when the Bitcoin price plunged to new lows, the altcoins followed. The Ethereum blockchain is home to many decentralized applications (Dapps) who use its blockchain for many purposes by way of using smart contracts and as such a lot of tokens, the ERC20 tokens to be precise, are being produced for users and investors to participate in the Dapps.

Bitcoin is now 9 years old and Ethereum is 3. While their seniority in the cryptocurrency market cannot be denied, they are burdened by a lot of problems. Unconfirmed transactions often beleaguered both blockchains. They simply cannot cope with the demand of transactions being made. As a result, the transaction fee became so high that it turns people off to receive and send Bitcoin and Ethereum. Furthermore, it is so slow to transact.

Bitcoin and Ethereum use a computer algorithm called Proof-Of-Work (POW). A miner makes use of a computer to mine these cryptocurrencies. Nowadays, corporations took over the mining using a lot of computer resources or ASIC hardware hence a lot of electricity is used. As a result, the mining became more and more centralized with the 51% attack becoming apparent.

Solution: Gochain

Proof of Reputation (POR)

The Gochain team immediately saw these problems and build a blockchain out from scratch based upon the improved code of Ethereum. The Gochain blockchain uses a Proof-Of Reputation (POR) algorithm which is more decentralized than POW. POR uses companies and not individuals to operate the blockchain. 50 large cap companies spread across 50 different countries will be the tenet of POR. This is the perfect philosophy of decentralization because the companies are geographically spread and its reputation at stake.

The companies will be chosen by Gochain and will be the likes of angel investors, venture-backed startups with a burn rate and VC partners. Once the 50 companies or signers are established, they will be allowed to operate the blockchain themselves. The chosen companies by Gochain will become trusted nodes where they will sign and create blocks without the mining cost. The trusted nodes can verify transactions quicker and handle increasing volume of transactions in magnitude.

Energy Consumption

The energy consumption operating this blockchain will be drastically lower than Bitcoin and Ethereum about 1000x as the trusted nodes required no mining. There will be no competition for who gets to mine a block of the cryptocurrency hence no energy wastage. A small fraction of energy is being used by trusted nodes to process transactions, run smart contracts and verify blocks. This will save the costs of the companies who will operate the blockchain.

Testnet

The Gochain blockchain can transact up to 1300 transactions per second with a maximum of up to 2400 transactions per second. The team already have a Testnet to prove this is working. The blockchain is 100x faster than Ethereum and this allows faster execution of smart contracts embedded in the blockchain. The ability to move code from the Ethereum blockchain directly to Gochain will greatly enhanced the coding process on a much faster blockchain and the existing companies using Ethereum will have more benefits as a result.

When smart contracts are finalized on the Ethereum blockchain, they cannot be changed, amended or altered in any way possible and this resulted in the contracts being attacked because they cannot be updated to resolve the security loopholes that may be present but Gochain will change the norm.

Roadmap

It is impressive that by Q2 2019, there would be a huge jump in transaction times to 13,000 transactions per second. This shows the commitment of the team to get out of the comfort zone improving transaction times on the GoChain blockchain.

For more information on this ICO, please visit the website and join me in participating this contest. Signing off! Sejuk!

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