GSC from PoW to ADPoS, from the consensus mechanism to see the

future of cryptocurrency

In the world of cryptocurrency, the "consensus mechanism" is the

foundation of a public chain, which directly determines the development

and success of the public blockchain. From the PoW model of the

earliest bitcoin to the PoS mechanism, to the controversial DPoS

mechanism, how to build a safe and efficient consensus mechanism to

make the project runs stably is becoming the focus of investors pay

attention to. Today, the GSC takes everyone to look at the four

mainstream consensus mechanisms in the cryptocurrency market and

the differences between these mechanisms.

What is the consensus mechanism?

The cryptocurrency is decentralized. The basis of decentralization is that

there are many P2P nodes. So what incentives are there to attract users to join

the network to become nodes? At the same time, the focus of development is

to let multiple nodes maintain a database, then how to decide which node to

write? When to write? Once written, how to guarantee that it will not be

changed by other nodes (irreversible)? The answer to these questions is the

consensus mechanism.

POW-power consensus which was created by Bitcoin

PoW (Proof of Work), the workload proof mechanism, is the first

generation of consensus mechanism and the basis of Bitcoin. In short, it is

“rewarding by work” you will be paid by how much you work . In the

online world, the labor here is the computing service you provide for the

network (computing power × duration), the process of providing this service

is "mining."

Advantages:
1. Incentive model encourages multi-participation

Through the constant amount of Bitcoin, the calculation of

"mining", the automatic adjustment of the mining difficulty, and the

gradual halving of block rewards, etc., it can attract more people to

participate.

2. The “mining” mechanism is relatively fair

This kind of mechanism can attract many users to participate in it.

In particular, the earlier the participation, the more the acquisition will

lead to the rapid development of the initial stage of cryptocurrency and

the rapid expansion of the node network. In the era of CPU mining,

Bitcoin attracted a lot of people to participate in "mining", which is a

good proof. It is relatively fair to issue new coins through “mining”

and distribute bitcoin to individuals.

Disadvantages:
1.Huge Consumption

The computing power is provided by computer hardware (CPU,

GPU, etc.). It consumes electricity and is directly consumed by energy.

It is contrary to the concept of human beings pursuing energy

conservation, cleanliness and environmental protection.

2. Monopoly power

This mechanism has developed to the present day, users from the

personal mining development to large mining pools, mines,

concentration of power is becoming more and more obvious. This runs

counter to the direction of decentralization, and the security of the

network is gradually threatened.

3. Security is getting weaker

The Bitcoin block reward will be halved every four years. When the

cost of mining is higher than the mining revenue, people's enthusiasm

for mining is reduced. It is likely that there will be a large amount of

computing power which will be reduced. The security of the future

Bitcoin network is full of uncertainty. .

PoS - a solution that benefits a few people

PoS (Proof of Stake), the equity certification mechanism, is a system for

paying interest based on how much money a user holds and the time (coin

age). The most typical example in reality is stocks or bank deposits. If the

user wants to get more money, then open the client and keep it online to

benefit from “interest” while keeping the network secure.

Advantade:

1.Energy saving
No need to mine, it will not consume a lot of electricity and energy.

2. More decentralized

Decentralization is relative. Compared to PoW-type cryptocurrencies

such as Bitcoin, the cryptocurrency of the PoS mechanism basically

doesn't have too high demand for computer hardware. Everyone can

mine (get interest) without worrying about occurrence of the

concentration of computing power(single users get 51% of the money

through purchase, the cost is higher), the network is more secure and

secure.

3. Avoid tightening

The cryptocurrency of the PoW mechanism may lead to deflation due to

various reasons such as user loss. However, the cryptocurrency of the

PoS mechanism increases the currency at a certain annual interest rate,

which can effectively avoid the occurrence of austerity and maintain

basic stability.

Disadvantage:
The cryptocurrency of pure PoS mechanism can only be issued through

IPO, which leads to “a few people” (usually developers) getting a lot of

cryptocurrency with very low cost. In the face of profits, it is difficult to

guarantee that they will not sell in large quantities. The cryptocurrency

of the PoS mechanism's credit basis is not strong enough.

DPoS - a community mechanism that relies on voting governance

DPoS (Delegated Proof of Stake): Authorized Equity Certification

Mechanism

For the cryptocurrency of the PoS mechanism, each node can create a

block and get "interest" according to the individual's shareholding ratio. The

DPoS is created by a community-trusted trusted account (trustee, here the

first 101 nodes with the number of votes) which creats block. In order to

become an official trustee, users have to go to the community to canvass and

gain the trust of enough users.

The 101 trustees have the same rights to each other. Those who hold

cryptocurrencies can change these representatives at any time by voting. As

long as they provide unstable computing power, computer downtime, or

trying to use their rights to do evil, they will be kicked out of the system by

the voters, and the backup representative can always go up.

Advantage

1. Lower energy consumption

The DPoS mechanism further reduces the number of nodes to 101.

Under the premise of ensuring network security, the energy

consumption of the entire network is further reduced.

2. Avoid high computing monopoly

For Bitcoin, personal mining is relatively unrealistic. Bitcoin's

computing power is concentrated in the hands of several large mining

pools. Each mining pool is centralized. In this perspective, DPoS is like

a trustee, so the cryptocurrency of the DPoS mechanism can avoid

high computing monopolies like Bitcoin.

3. Faster confirmation speed

The time for each block is 10 seconds, a transaction (after getting

6-10 confirmations) is about 1 minute, and a complete 101 block cycle

takes about 16 minutes. Bitcoin (PoW mechanism) takes 10 minutes to

generate a block, and takes 1 hour after a transaction is completed

(after 6 blocks are confirmed). The Peercoin (PoS mechanism)

confirms a transaction will also take about an hour.

Disadvantage

1. The voting enthusiasm is not high

The well-known project EOS uses the DPoS mechanism. According

to the EOS campaign results, the majority of shareholders (90%) never

voted. This is because voting takes time, energy and skills, which is

what most investors lack.

2. Pan-democracy causes inferior nodes

The pan-democratic that everyone can vote will result in the

inferior quality of the selected nodes, failing to fulfill the

responsibilities that the nodes should assume, and causing the entire

ecological paralysis. There are many difficulties in dealing with these

 bad nodes. It is difficult for community elections to prevent them

from appearing in a timely and effective manner.

ADPoS - the first effective management model

ADPoS (Account Delegated Proof of Stake), was created by the GSC

based on DPoS. In order to meet the needs of high-performance trading, the

GSC has made optimization and innovation of the DPoS mechanism. The

ADPoS mechanism, created by the community-trusted account (trustee, the

top 23 votes) to creat block,meanwhile, there are 50 spare nodes, and the

GSC evaluates the value of the account by multi-dimensional value. The high

value account will be given more voting rights, and differents from DPoS

votes that everyone can votes.

Through SVN (Social Value Unit) social value measurement unit, value

evaluation for account number, SVN=PoA+PoC+PoW, PoA (Proof of

Activity) effective activity certificate, PoC (Proof of Charm) effective charm

certificate, PoW (PoW (Proof of Charm) Proof of Wealth) The proof of

effective wealth, the GSC gives the elites more voting rights through such a

value assessment mechanism.

The ADPoS mechanism is similar to the Chinese People's Congress system

and the US two-party system. Take the people's congress system as an

example. Each province and city chooses its own representatives through
elections, and then these representatives participate in the people's

congress. Such elections are more fair and more efficient.

Advantage

1. Energy consumption is lower than DPoS

GSC's ADPoS reduces the number of nodes to 23 (with 50 spare

nodes), and 23 high-performance super nodes ensure network

operation.

2. The speed of confirm is further improved

 In the GSC test network environment, it acieved that creat a block

only takes 3 seconds, and one transaction was completed in about 30

seconds. This speed is better than PoW, PoS, DPoS.

3. Higher node quality

Through the SVN model, each account is valued, making the

election vote more fair and democratic, so that the elite has more

voting rights. The selected nodes have higher quality.

Whether the blockchain project can be achieved is directly related

to the future of cryptocurrency. With the market changes, more public

chain teams are actively looking for solutions that ensure both safety

and efficiency. Voting requires time, effort, and skill. The same to

DPoS, the ADPoS mechanism has a problem of low voting enthusiasm.

However, compared with the PoW and PoS mechanisms, the ADPoS
mechanism maximally balance the fairness and efficiency, and

facilitates the large-scale application of blockchain projects. With the

development of the blockchain industry in the future, the issue of low

voting enthusiasm is also expected to be resolved. The GSC test

network was officially launched at the end of August. From the current

test situation, the ADPoS mechanism has its advantages, which brings

potential for the decentralized application of large-scale landing in the

future. Can it meet expectations in the future? let us wait and see!