On Apr 16, 2019, Algorand, a decentralized, permission-less and public chain, announced the opening of its TestNet to the public. The Algrand protocol, designed to support participation for billions of users, was invented by Silvio Micali, MIT professor, cryptography pioneer, and winner of the prestigious Turing Award. The scalable public chain aims to solve the problem of computing power concentration that, among many other problems, has constantly confused the blockchain industry.
Although it is questionable whether Alogrand can solve the problem of computing power concentration by constructing its public chain on incentive rather than cryptos, it is a commonly accepted rule in the blockchain industry that, to become a public chain, two components are crucial – the mining mechanism and consensus algorithm.
Right now, Bitcoin amasses about 10,000 miners, the majority of computing power of Bitcoin, while Ethereum amasses about 17000 miners. It is incredibly challenging for any permission-less public chain community to gather over 10,000 miners. Meanwhile, it costs around $5 billion a year to maintain Bitcoin blockchain with an annual inflation rate of 4%. This is a problem challenging every Proof of Work public chain.
Nonetheless, Ethereum is already an improvement from Bitcoin by achieving Turing-complete. The smart contract mechanism creates a trustless machine-to-machine communication system. Compared to Bitcoin, Ethereum provides a series of standards including ERC20 and ERC721. The instant and immense success of Ethereum triggers the mass speculation and imagination, inspiring many to create a new public chain to improve the current Ethereum architecture. In fact, I read numbers of public chain white papers since 2017. Most so-called “public chain” projects are merely to add an application layer on the Ethereum, which makes the public chain excessively intricate and unnecessarily cumbersome. Indeed, it is not the role of the first layer in a blockchain architecture, i.e., a public chain, as shown in the chart below, to solve the problems that are supposed to be fixed by the applications in the second layer or third layer.
Market always makes a choice. According to a market prediction, ninety-five percent of public chain projects is estimated to withdraw from the market due to the lack of effective DApps, innovation in both global consensus algorithm and mining mechanism, two crucial components for a successful public chain. Among the remaining five percent of public chain projects, which one is going to be able to replace Bitcoin or Ethereum? Would EOS work out?
During the past year, even more than 4 billion USD all over the world has been invested into EOS. Yet, the core natures of EOS have never been improved due to the fact that the core team members of EOS are veteran software developer who have preferred the method of “limiting the number of nodes” as scrutinized by security; as we all know, lesser nodes are always vulnerable to 51% attacks and DDOS attacks. As operated by only 21 nodes, EOS prioritizes on functional speed but ignores security, which would be fatal for a public chain. EOS can be compared to a private chain or alliance chain and cannot be considered as a global consensus.
How can BOLT contribute to the blockchain architecture?
Two basic mechanisms facilitate human evolution – violence and trust. Without trust, a society degenerates into the jungle rule. The evolution of trust mechanism, i.e. the emerging blockchain technology, greatlys promote the progress of human society.
What Algorand tries to achieve and EOS fails to accomplish is to solve the problems existing in the system of blockchain, particularly Bitcoin and Ethereum, i.e. the first layer of a blockchain architecture. Yet it is not the role of the first layer in a blockchain architecture, i.e., a public chain, to solve the problems that are supposed to be fixed by the applications in the second layer or third layer. Especially, due to the fact that the cost of maintaining and running a public chain is exceptionally high, it is uneconomical for each and every participant in a blockchain architecture to swarm into the first layer of the blockchain mechanism by establishing their own public chain projects. The second-layer tool software in a blockchain architecture improves the entire ecosystem. It also sharply reduces the cost for launching an application in a traditional internet system. For these reasons, the development trend in the blockchain industry is expected to take place in the second layer of supporting tools for the blockchain mechanism. The third layer, often called the applications layer, or the DApps layer, becomes the optimal solution for launching application software programs in a blockchain architecture, including some software applications in the fields of accounting and finance.
BOLT, as a second layer scalability tool, boosts the performance of the first-layer public chain, i.e. Ethereum, in the machine-to-machine trustless environment, introducing a third-party automatic auditing. High-volume and non-critical transactions are processed with index merkle tree hash generating mechanism to achieve and progress into automatic auditing. BOLT provides a transparent cooperation mechanism based on the blockchain architecture for the third-party transactions in the daily economic life, where consensus and trust among the cooperating parties increases without downgrading the current rights and interests of each party.
For more details: https://bolt.infinitechain.io.
The essence of a blockchain is to adopt a mechanism that can provide automated audits, which functions as the basis of the technological credibility that cryptography and algorithms creates. Particularly, BOLT solves what EOS fails to achieve – the security risks caused by 21-node architecture. By extraordinarily enhancing the capability of automated auditing , BOLT, a second-layer support tool to the first-layer pubic chain, guarantees reliability and safety of a public-chain mechanism.
Meanwhile, from the automated billing system of Bitcoin to the smart contract mechanism of Ethereum to the automated audits mechanism of BOLT, the three giant steps tremendously decrease the cost of social trust in today’s society. Automated audits mechanism, a trustless machine-to-machine mechanism, guarantees the exceptionally low cost of maintaining the daily function of a blockchain architecture or community. Take the Bitcoin public chain for example, the automated audits mechanism already sharply drives down its marginal cost. However, the annual cost of maintaining the auditing system in Bitcoin still amounts to $5 billion. It is difficult to imagine to which extent the social resources could be wasted by numerous public-chain projects. After TIDEiSun launches BOLT, the cost of a public-chain function and maintenance is tremendously reduced. Through BOLT, audited hash value is sent to Ethereum 24 times per day at the cost of $24 and $8760 annually in total. A good gain for your bucks.
BOLT offers a scalable and speedy solution to Ethereum public chain where a complex, expanded but fast-running Ethereum architecture becomes possible. Particularly, as a plug-in of Ethereum, BOLT, expediates the application of Ethereum into commercial possible enterprise solutions. When BOLT is applied into an IPFS system, it guarantees data authenticity in the industrial application of Ethereum.
The world has entered a new era when public chain evolves from the basic architectures of Bitcoin to Ethereum and beyond. BOLT, underpinned by the public chain of Ethereum network, will become a cornerstone of the next phase of blockchain enterprise solution.