Hello friends, hope we had an amazing weekend. Well today i want to tell you all about GoChain, an amazing project i found about recently.
I also made some of the designs and created the video myself in this write up.
WHAT IS GOCHAIN
GoChain is a scalable, high performance, low cost, and decentralized cryptocurrency and blockchain that supports smart contracts and distributed applications for 100 times increased performance.
Now imagine ethereum, but 100 times faster, 10 times more decentralied and 1000 times greener(requires much less energy for it to operate)
Gochain decided to take it upon its self to fix ethereum in terms of transactions speed, level of decentralization and energy consumption. So i would say that it's a more polished, advanced and upgraded version of ethereum since the developers used ethereum as a starting point and have since evolved it.
| FEATURES | ETHEREUM | GOCHAIN |
|---|---|---|
| Decentralization | 72% of mining = 4 chinese companies | 50 authoritative nodes |
| Speed | 13 transactions per second | 1300 transaction per second |
| Energy consumption | could power 1 million US households | minimal |
I would like to briefly explain the features above.
Decentralization
They are 10 times more decentralized. More than 70% of mining is in China, and it is majorly ran by a few big companies. They kind of control the market. They control the aspect of the mining. Gochain forces nodes to be in different countries. They are not going to have the same problems not dependent on one major company because if they call it quits maybe one day, a lot of problems will happen. So that's why Gochain's main aim is to force nodes in different countries run by unrelated people and companiesSpeed
They are 100 times faster. Right now ethereum can only process 13 transactions per second, but Gochain is saying theirs is a hundred times more and that makes it 1300 transactions per second. If you don't think that is huge, i urge you to think againEnergy consumption
Its a 1000 times greener. We all care about less energy consumption in the world, but if you think of how much electricity ethereum or bitcoin use, you will find out that they use a lot. It is estimated that the amount of energy used by ethereum can power a million households. With that being said, being greener is a positive thing on the environment and on everybody else, hence less consumption, less money. So it is 1000 times greener, and it only uses a small fraction of the energy to run other cryptocurrencies.
I would like to give an illustration of the current state of ethereum and why Gochain is faster and better.
Now think of ethereum as 'A' and think of Gochain as 'B'
Now A has been around for a while and majority of the applications that we see now are currently built on ethereum, however its kind of slow now, there are a few bugs in there etc.
Now on the other B is a more advanced version, so anything that was built on A can cross over to B smoothly because they are so compatible, anything compatible with ethereum is also compatible with Gochain. So projects can switch from A to B very easily and that's its unique value proposition. They can deal with all the limitations of ethereum with immediacy.
Now i believe we have heard of POW (proof of work) and POS (proof of stake), ethereum switching to proof of stake, however when upgraded might be around a 100 transactions per second. Then there is POA (proof of authority), where a scientific trusted individuals will place nodes inside blocks, however GoChain have introduced what we believe to be the best solution to all the shortcomings of POW, POS, and POA
Now when it comes to mining, 70-75% of all the blocks of bitcoin and ethereum are mined in China meaning that they are at the mercy of the Chinese regulators. China is home to the world’s largest bitcoin mines, thanks to abundant and cheap electricity, and at one time it was said that 90% of daily trade for the hugely valuable cyber currency takes place in China.
Gochain uses a Proof of Reputation (PoR) consensus model that depends on the reputation of the participants to keep the network secure. A participant (a block signer) must have a reputation important enough that they would face significant financial and brand consequences if they were to attempt to cheat the system. This is a relative concept as almost all businesses would suffer significantly if they were caught attempting to be deceitful, but larger companies will typically have more to lose and thus are chosen over companies with less to use (smaller businesses).
source
Once a company proves reputation and passes the verification, they may be voted into the network as an authoritative node and at this point, it operates like a Proof of Authority network (PoA), where only authoritative nodes can sign and validate blocks.
There was something that caught my attention on the whitepaper where they used the Volkswagen emissions scandal as an example to buttress the point of why reputation is of importance.
They operated alone to deceive the public and their own customers. Once caught, it was both a financial and public relations disaster that cost them $25 Billion, a 50% drop in stock price, and their brand lost a lot of trust. Their reputation was put to the test and they paid dearly for it. Proof of Reputation relies on this risk of significant loss to enable trust in the network.
source
Imagine if Volkswagen worked with Ford, Toyota and others to validate and verify each other’s emissions tests. It is highly unlikely that Volkswagen could have gotten away with their fraudulent activities which is true because you are already working with these big companies and collaborating through security and transparency as well.
So this is pretty much the model that Gochain is using and i think it is unique so you can check it out, i have never heard of this before.
They are going to start off with 50 nodes, and then they choose other corporations that are going to come into the circle which is why it is greener and faster. If i would go into specifics, this is going to use 0.001% of all the energy that ethereum uses.
TOKENOMICS
My designs
This tells me how much risk there is, how much reward there is, it also tells me whether this will be a success or flop
Now looking at the design above,
- Token sale
50% will be sold - Team
10% will go to the team, which is the industry standard, and the token will be locked for the team for a period of 24 months (2 years) which will keep them incentivized and focused on the project - Partners/ Advisors
6% will go the Partners and Advisors of which they are 6 of them, so 1% each. - Foundation and Bounties
This is totally okay - Marketing/Legal
4% will be channeled here which is also okay - Reserve /Gochain fund
After the recent drop in market dip from 830 billion, they will need some sort of liquidity or some sort of funds to tap into to keep the project going. So for me, 10% is all good
I will also like to give a third party perspective. ICO Bench gave a rating of 4.3/5 which is quite high, ICO marks gave them a rating of 7.5/10. So they have a very score generally.
The project is live and ready to use. It is already delivering on it's promise and is able to process 1,300 transactions per second!
So personally i believe in the nearest future projects will be choosing Gochain because its unique in many ways, thinking outside the box, and it promotes mass adoption of cryptocurrencies with all its features. I really love this project and i can see a huge future for them.
For more info visit the links below
Whitepaper
Telegram
Website
Medium
gochain2018