Most people don’t understand cryptoeconomics. They are often blinded by their love for one particular blockchain and claim its supremacy over others. Or sometimes they are blinded by the temporary popularity of one blockchain and hence claim it’s the future. Sometimes, people confuse popularity with success.
What’s up with EOSIO
By estimates, the EOS mainnet blockchain is currently the most popular blockchain there is. Its dapps have the most users. Fans of EOSIO are among the ones with most conviction in the industry. Only until recent with the plummet in EOS token price that has made its community raise some questions. Questions are good.
One thing people should understand is Blockchain 3.0 is about application of the protocol, not putting all applications on one chain. Block.one created the EOS protocol, we can have many chains on it. Chains give variations, and variations give adaptability for applications.
Then there’s the question of the EOS Mainnet Block Producer reward. It only gives reward to the BPs. Voters get no incentive to participate and certainly get no compensation for inflation. Also, the inflation rate does not adjust based on the activity of the network. This is an issue for the single chain cryptoeconomics.
More importantly, we are working on services for Web 3.0. It requires understanding of the issues the services aim to address and understanding of the blockchain at the same time. Such teams are very few in numbers. That’s why currently only public blockchains like Bitcoin and BCH are really useful. They were created to solve the issue of P2P digital cash and are constantly being adapted for current needs.
What’s up with blockchain
Exploration in application possibilities and the development of the infrastructure should support each other. Imagining an application to create infrastrucutre ignores the realistic needs of the application.
Meanwhile, we discover that using a public blockchain to solve issues is much more powerful than a smart contract on chain. But in the current climate of the industry, many developer teams are not familiar with blockchain development. This limits the range of applications that can be developed on blockchain technology. Shortage of talents is a practical hurdle for the application of blockchain.
Blockchain is very different from traditional Internet development. Your code is running on other’s server 7/24. Issues in this technology is not as simple as data leakage as in the case of Facebook. A lot of financial assets are involved.
Then there is also the decentralization aspect. Many people overemphasize decentralization. Decentralization is not the end. Different degrees of decentralization solve different issues.
And there is the design of cryptoeconomics. The most difficult part about blockchain is not the technology, but its economic model. The supply of the currency has the most fundamental effect on the price of the current. The rise of ICO showed us many different cryptoeconomic models. Most of them failed. We can see how difficult it is to design a good economic model.
The question of cryptoeconomics raises further questions on developer incentive and miner incentive. They exist in every blockchain project. Bitcoin is an extreme. Developers of Bitcoin do receive incentives from the network directly, and it does not have an ICO. It’s fair to every miner and token holder. But we do need to acknowledge that the developer is relevant to the interest of the blockchain. Regardless it’s POW or DPOS, someone has to execute it.
A great misunderstanding is many people in the blockchain industry liken the rise of the technology to the rise of the Internet. We see a lot of blockchain teams want to do social on blockchain & e-commerce on blockchain. Although the whole development of Web 3.0 will disrupt the traditional Internet, but it is not going to happen before a new technological model and economic model get wide enough recognition. It is foolish before then to challenge the existing Internet giants. For example, where EOSForce is in Hangzhou, China, Alibaba created Taobao.com early on. Back then retail was very powerful, and nobody cared about online shopping experience. But we see Alibaba’s full-on march into retail right now. “New Retail” is substantial in every industry. The lesson is, if Alibaba started with retail in the first place, it would not survive till now. The same story applies to Amazon.
What’s wrong with the Internet Economy
The reason why we confidently push forward the development of cryptoeconomics is as followed:
Essentially, in the age of Big Data, data are the fuel and the production materials. However, companies like Facebook and Alibaba won’t hand their data to you. Their whole business model is to make money off your data over and over. Their growth is exponential, but average consumers do not profit from it. Wealth gap will be larger as we go deeper into the Big Data age. That’s why Internet products like Craiglist and Pingduoduo are very popular in recent years. This is a reality we have to face, wealth gap is getting larger in the age of centralized Internet.
Aside from the wealth gap is data privacy. This is apparently not given as much attention as the previous subject. Earlier this month famous hotel group called Wanhao leaked data of 500 million customers to hackers. But people forgot about it quickly. Data breach on the Internet is common as it is not a secure network in itself. This problem needs blockchain to be addressed eventually.
High trust cost and insecure network make blockchain a necessity for us in the Internet age.
About EOSForce
Next let’s talk about what EOSForce is going to do with these challenges.
EOSForce is dedicated to exploring more open cryptoeconomic infrastructure through practice. We push the applications of blockchain technology in all fields by consistently developing the EOSForce.io multichain architecture protocol. The EOSForce development team is so far the only team that’s able to develop on the fundamental level of the EOSIO code outside Block.One.
Right now we have the most active parallel mainnet that is already launched in the EOSIO ecosystem. We have innovatd unique resource model and a fair governance mechanism that developers love. Next up we will evolve to the highly scalable multichain blockchain protocol based on EOSForce.
The strong suit of our EOSForce team is not creating but engineering. We finished the research and testing of the EOSIO code and launched the mainnet in 3 months. We spent the past 6 months upgrading the EOSForce blockchain, adding onchain pseudo-random number generation to eliminate random number hacks that have cost millions of dollars in contract breaches.
EOSForce & BCH Community
EOSForce was launched as planned in the EOSIO timeline. We went through a tough time with the boycott from EOS communities under the original 30 vote cap model. Similar to Bitcoin Cash, we had a lot of resistance in early stages.
The point here is not to complain about the fights between communities. It is about the thorns we encounter along the road of innovation.
Take the example of BCH and EOSForce. Different developers have different opinions, but communities don’t have an open, transparent voting system. This forced the ones that see things different to fork. But before the real boom of blockchain, conservatives are always right.
The disputes between BCHABC and BCHSV will exist in every community. What people seek should not be sit down and talk things out, but a mechanism for discussion and voting. Decentralization is not chaos. Even after the chaos of the Big Bang there was order.
Pros & Cons of DPOS
Many people take issues with DPOS. Our past experience with it could help answer some of the questions. So let’s talk about the pros and cons of DPOS.
The 10 minute confirmation in Bitcoin and its block size looked fine, only in the network environment back in 2009. There are more people today using Bitcoin and blockchain. We do need high TPS. For app developers, DPOS is a very good choice.
Governance here on DPOS is not to satisfy government regulations but the own needs of community. When you private key is stolen, you will want a regulatory body. So we want a governance body in blockchain, but we want it decentralized too. The current design of DPOS is not the best, but we are making improvements on it.
Many things eventually do not work without centralization. Centralization led us out of the population trap. Now our economic growth exceeds the population growth. The collatoral is much unfairness that comes with centralization distribution. This is the reason we need fairness on distribution and governance. DPOS in this respect gives fairness that’s more effective.
Absolute decentralization does not accomplish anything. The universe is decentralized, but it does not care about the survival and death of the human civilization. So in the end, discussions on decentralization, governance and incentive models need to consider their effectivity.
What does EOSForce do — Part 1
The first improvements we made on EOSIO are as followed:
- Governance model: 1-token-1-vote, voting dividend
- Resource model: trans-fee instead of CPU & NET resources
The add universal functionalities in blockchain bottom layer during interactions with contract developers.
We also made improvements based on Polkadot during cross-chain development (IBC). We applied the effectiveness of DPOS on top of Polkadot and our relaychain that enables IBC is also based on upgraded DPOS concensus that’s fairer.
What does EOSForce do — Part 2
For future blockchain developers,we have one-click public blockchain launch setup. We will simplify and launch procedures for public blockchain and incorporate some universal needs of developers to the blockchain.This way develoeprs and communities will find blockchain really easy to use.
Also we are designing a new, non-ICO token issuance model that gives developers incentives to continue development. We have seen the rise and falls of many blockchains and games that lose momentum due to the lack of sustainable incentive source for the developer. The specifics are that the developer gets income from daily block rewards. This account is managed by the multi-sig Super Node account, which makes sure that developers cannot do whatever they want without community discussion.
Network Status
There is lot of differences in the EOSForce mainnet. One particular difference is that our voter participation rate is consistently around 90% because we have voting dividends. This is a huge improvement on a decentralized community.
Meanwhile, a large number of developers are participating in the discussions of how to develop smart contract and public blockchain.
Any current changes to the network are all governed by the Super Nodes.
Technical Architecture
- Computation Layer Parallelchain: provides custom-design high-performance public blockchain solution. Developers can quickly launch public blockchain and reach multi-million TPS with multichain architeture.
- Relaychain: Relay network is a POS blockchain. Its native token FOS rewards token holders for integrity and honesty. It provides community governance for all blockchains that dock on it.
- Vertification Layer: provides verifier, executor and multiple FOS share interest parties for parallelchain verification. Verification network shares the whole FOS community governance through Computation Layer staking FOS.
- Scalability: EOS, BTC, ETH and other blockchains can intercommunicate by docking on relaychain to achieve IBC. TPS can be adjusted dynamically by setting up different numbers of network nodes.
Current Demand Side
We now have a huge demand from wallet and decentralized exchange. Our judgement is a future service setting will have itspublic blockchain, or even one service setting has a multichain structure itself.
Take the grocery business and philanthropy. If both businesses use the same public blockchain. One business can leverage enough tokens for resources to cause the other to lose resources and revenue. It would therefore be cost-ineffective to fight for onchain resources in this case. A better scenario is if you only needed to care about your services and community governance.
Also, future POW+primary nodes will be popular in the financial area. Supporting heterogeneous blockchains then becomes super important. The reason why EOSForce chooses the relaychain is that it satisfies all cross-chain transactions.
This future is happening right now. Already many existing business developers come to us because they want to use the EOSForce protocol to launch blockchain for their services.
Roadmap
Our roadmap is relatively conservative. We are doing a new round of equity-financing to 2X our development speed.
We launched EOSForce chain in June 22, token name EOSC.
2019 Q2 will see the launch of EOSIO relaychain and multichain asset trading platform.
2019 Q3 will see the relaychain and the trading platform support BTC and ETH heterogeneous blockchain interoperability.
In 2019 Q4, other public blockchains can freely interact with EOSForce.
Above is some of the case analysis and experience that we have discovered from developing EOSForce. Hope it’s helpful.
Public blockchain and smart contract are still in early stages. New-comer developers usually encounter many issues like the contract breaches in EOS Bet. These are rudimentary mistakes.
The first breach was other people used smart contract to issue fake EOS tokens. Users received these tokens from it without the platform authenticating the token first.
The second time was even simpler. The platform directly sent back real EOS tokens to the hacker only after they told him that they had sent him some EOS tokens.
People should give 100% attention to the security of the smart contract and the blockchain.
Pioneering Blockchain Applications
For blockchain applications, we have not seen anything better than Bitcoin, although we have found out that developers in some industries are using blockchain to solve some of their issues. There is UBI, finding lost children, online education, insurance, energy trading. In fact we believe NGO and related application fields are natural for blockchain technology. By default, their organizations need decentralization, transparency, and low-cost trust. In fact, no matter it’s government and for-profit enterprises, they don’t have much time and energy to expend in this field. From the statistical standpoint, Facebook has about 2 billion users, meaning that the blockchain has the rest 4 billion user base to play out on.
How we reshape the lives of 4 billion people is how we shape the world’s future.
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