- TERRA CREDIT: DIGITAL PAYMENT SOLUTION USING PROOF OF STAKE
Just now·7 min read
Cryptocurrency which is a solution to many problems that plagues the financial industry, can possibly solve the problem of many adults not having access to digital banking or owning a bank account at all, based on statistics,a big percentage of adults are unbanked, unbanked in the sense that they don not have the opportunity to enjoy benefits of modern banking, being unbanked also means things like cashing checks and paying bills are costly and time-consuming, tedious and stressfully slow and involves lots of paperwork, making crypto-currency and blockchain technology a viable option.
Satoshi Nakamoto dropped the white paper for the creation of BITCOIN, making it the first crypto-currency to be created, impressive however it had raised concerns over how it was modeled to function, speculators had foreseen the problem the king crypto would face, the name of the most widely use PROOF OF WORK (POW) model, simultaneously a host of other crypto followed suit, ETHEREUM may have added a few twist to the codes but it still suffered most of the flaws which haunts BITCOIN.
Flaws like insurmountable electricity consumption, time lagging, and the threat of a 51% attack, POW seems to dwarf in comparison to PROOF OF STAKE (POS) model, as POS boasts itself as a superior model and TERRA implements this to create it’s token CREDIT, a substitute for cash, and to un-bank the world, and serve the underserved and the un-banked.
TERRA CREDIT AND THE BRIEF HISTORY OF PROOF OF STAKE (POS)
With the use of POS, most of the problems of POW is being checked mate, as it offers an even more better alternative.
TERRA CREDIT makes use of POS, an idea that was introduced in 2012 by Sunny and Nadal with the sole intention of solving the problem of Bitcoin’s high energy consumption, which has grown considerably fast and continues to raise concerns. With the use of POS, most of the problems of POW is being checked mate, as it offers an even more better alternative.
PEERCOIN was the first to implement this idea, and since then other projects like DASH has built on the idea, also a Chinese project such as NEO (Chinese ethereum) has done pretty much well, growing by some 100,000% and also act as proof of POS efficiency.
By using the POS model, TERRA CREDIT holds some advantages over other crypto currency, and at the same time is closer to achieving it’s aim of rendering quality financial service to the underserved and unbank populace.
TERRA CREDIT POS : AND ITS ADVANTAGE OVER OTHER CRYPTO USING PROOF OF WORK (POW)
TERRA CREDIT is giving back power to the masses and in turn is truly decentralized.
The most popular block chain are running on the POW model, in order for miners to gain an edge over others, and survive the competition, high end computers are required, computers such as this do not come cheap, and neither is it’s electricity requirements, all together the cost of setting up one and maintaining it is so high, not everyone can afford to get in, this puts the work of transactions validation in the hands of a few, not very decentralized if you ask me.
TERRA CREDIT Advantage
Terra credit runs on the POS model and as such do not require high computational devices, all that is required is a minimum amount of CREDIT in users wallet, and a connection to the internet, this is a very low level of entry for everyone, irrespective of their pockets depth. TERRA CREDIT is giving back power to the masses and in turn is truly decentralized.
- ENERGY CONSUMPTION
It is estimated that mining alone consumes as much electricity as the country of Belgium
Already stated, POW runs on computers that requires huge supply of energy, this energy in the form of electricity do not come cheap, it is estimated that mining alone consumes as much electricity as the country of Belgium, that’s a rather wasteful spending on just confirming transactions, if our conscience doesn’t judge us, then we do not value our home planet, as electricity is one of the major causes of global warming, our means of payments shouldn’t be a contributing factor to this dilemma.
TERRA CREDIT Advantage
With Terra Credit, electricity bills is kept at barest minimum as all you need is your PC, we both know our PC consumes a fraction of what mining rigs gulps down in a swallow, now you can know that you are keeping the whole system running smoothly, whilst keeping a clear conscience, not forgety also the freedom from the noise that usually accompanies mining facilities.
- SECURITY THREAT
The 51% attack, a situation where 51% of the miners connive and double spend tokens, and this is not very difficult.
The consensus conundrum should be a well known term to crypto enthusiast, it’s the only thing that can (if it happens) compromise one of the very strong tenets of crypto, the problem of double spending. You must have wondered why people buy electricity junk eating computers just to confirm transactions, it is for the very purpose of checking double spending, now before a transaction happens it needs to be validated to be true by contributing miners, now what happens if the machines connive to give a false report, there you have it, the 51% attack, a situation where 51% of the miners connive and double spend tokens, and this is not very difficult.
It might be of interest to you, as at one point one mining company (name withheld), owned more than 50% of miners and later had to pledge never to let’s it’s miners pass 40%, infact the 51% attacks has been carried out on smaller tokens on the ethereum network, this might just be a warm up to bring down big ones.
TERRA CREDIT Advantage
TERRA CREDIT uses POS and as such is not susceptible to this kind of risk, CREDIT will be evenly distributed and as such one entity owning 50% of the total supply will not be possible, and if in the eventual case of it, the perpetrator stands to lose all of his tokens, it would be a stalemate move.
- TRANSACTION SPEED
In proof of stake miners do not compete directly with each other, rather than competing with other block producers, you are making sure to be available when your turn comes
In the POW model, the race is for the swiftest and the battle for the strong, the reward system for miners in the setting follows the "it’s about who did it first" principle, instead of working together, they work against each other, the end result? The miners work against time, with Bitcoin requiring 10 minutes for a block, and ethereum 16 seconds, transactions on both network are rather very slow.
TERRA CREDIT Advantage
In proof of stake miners do not compete directly with each other, rather than competing with other block producers, you are making sure to be available when your turn comes, scalability is covered up for and this in turn increases transactions speeds, as transactions are confirmed in splits of seconds, also solving the problem of liquidity as it will be listed on many exchange.
CREDIT TOKENOMICS and USABILITY
TERRA aims to serve the unbanked adult population, and the ones who are underserved, to achieve this it has created CREDIT as a digital payments solution.
It ticks all the boxes as a crypto currency, this includes being decentralized, built on the block chain, open source, aside this, to serve the unbanked, it has to act as an alternative to cash, transactions with CREDIT are almost instant, and the fees are virtually free, as everyone is a block producer.
Algorithm : Scrypt
Block type : Proof-of-Work/Proof-of-Stake
Coin name : Credit
Coin abbreviation : CREDIT
Address letter : C
RPC port : 43796
P2P port : 43795
POW Block reward : 5000 coins
Coin supply : 74800000000 coins
Premine amount : 30800000000 coins
PoS percentage : 100% per year
Last PoW block : block 10000
Min. stake age : 8 hours
Max. stake age : Unlimited
Coinbase maturity : 20 blocks
Target spacing : 60 seconds
Target timespan : 60 seconds
Transaction confirmations : 6 blocks
Node 1 : 18.104.22.168
Node 2 : 22.214.171.124
It would be right to say that the whole industry has been doing things the wrong way for too long, crypto was supposed to beat traditional banking hands down, to give everyone an equal fighting chance in the finance ring, but again the system was flawed, if it's not the problem of fees, then it's the guilt of being the cause of global warming, or perhaps impatience of long transactions, making it no more appealing to anyone as traditional banking.
With TERRA the rules of the game is going to change, a combination of advanced block chain technology that is fast, accessible to everyone, easy to use and with a low fees costs for transactions, this will not only be a proponent of success for the project but a huge solution to serving the underserved and unbanked.
- Date of publication:
- Tue, 04/06/2021 - 23:29
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