Introduction to public chain

Blockchain Industry Overview and Definition

Blockchain Definition

Blockchain is a distributed ledger that cryptographically guarantees that data cannot be tampered with and cannot be forged.

Public chain definition

The public chain is an underlying architecture developed by relying on blockchain technology, with key features such as decentralization, immutability, collective maintenance, and transparent and credible rules.

Key Features of Blockchain Technology

Decentralization

The information records on the blockchain are distributed in the blocks on the network, not limited to a single server

There is no need to rely on a third party when sharing and exchanging information between blocks, and the stoppage of any node will not affect the overall operation of the system

Immutable

Each node in the blockchain has a complete database, and a single node cannot be tampered with. If a user needs to write new data, he needs to initiate a data write request and attach a private key signature. The signature will be broadcast in the network and processed. verify

Collective maintenance

The blockchain system is jointly maintained by all nodes with maintenance functions, and all nodes can query blockchain data and develop related applications through public interfaces

Rules are transparent and credible

Each event processing in the blockchain system needs to be verified according to fixed rules, sent to each node, and recorded through the consensus mechanism

Consensus mechanism

Because the blockchain has the characteristics of decentralization, that is, blockchain users can achieve rapid transactions without trusting both parties and any centralized organization. The premise of this trust is the consensus mechanism of the blockchain.

There are three common mechanisms for mainstream public chains:

POW definition:

Nodes can join or launch freely, and compete equally for the rights of special nodes. The probability of a node becoming a special node is related to the proportion of the node's computing power. Computing power refers to the computing time of CPU or GPU. The main usage scenario of POW is Bitcoin. , the miners in the Bitcoin network solve mathematical problems with their own computing power, and the first miner who finds a specific attribute hash will become a special node

Advantages: The degree of decentralization is high, and nodes can enter and exit freely, preventing some nodes from becoming special nodes for a long time, resulting in rights rent-seeking

Disadvantage: Computing power is the decisive factor for becoming a special node. The process of solving problems with computing power consumes a lot of electricity, resulting in a lot of waste of resources

POS definition:

POS determines whether the node can become a special node according to the proportion of the equity held by the node to all nodes in the network. This equity usually refers to the number of tokens in the hands of the node and the time of holding the tokens, which means that the node owns The more tokens and the longer the holding time, the greater the possibility of becoming a special node

Advantages: No need to consume computing power, more environmentally friendly, and shorten the time for consensus

Disadvantages: Running this mechanism for a long time will cause the Matthew effect, the power of the nodes holding less tokens in the early stage will gradually weaken, and the special nodes will be occupied by some nodes for a long time.

DPOS definition:

Each node holding tokens can vote to select a certain number of special nodes. If the subsequent performance of the special nodes does not meet expectations, the remaining nodes can vote again.

Advantage: The decentralization of the public chain is guaranteed because the voting rights are distributed to each currency holding node

Disadvantages: Because voting requires time, energy and skills, 90% of the nodes holding coins do not participate in voting, and the enthusiasm of nodes to vote is low

Incentives

Once a node becomes a special node, it can obtain token incentives provided by the public chain. In addition, special nodes can also get token incentives for reporting hacker addresses. The implementation of the incentive mechanism is to encourage nodes to participate in the competition to become special nodes, and to continuously maintain the safe operation of the blockchain system.

Public chain concept classification

Smart contracts, DApps series:

BSC、Heco、Polkadot、Solana、Eos、NEAR 、Algorand 、ETC、ETH、Harmony、Tezos 、Cardano、 Klaytn 、Stacks、 Flow 、Kusama、NEO、Hedera、Fantom、TRON

Polkadot series:

Polkadot、Kusama

Bitcoin system:

BTC、BCH、BSV、LTC

Ethereum system:

ETH、ETC

EVM virtual machine system:

ETH,BSC,HECO,ETC,Harmony,Fantom

Store of Value:

BTC、LTC、Ripple

Exchange public chain:

BSC、Heco、OKExChain

Sharding concept public chain:

Harmony 、NEAR、 Elrond、ETH2.0、Polkadot、Cosmos

Cross-chain concept:

Polkadot、Cosmos

Decentralized Cross-Chain Automated Market Maker (AMM):

THORChain

Algorithmic Stablecoins:

Terra

Oracle:

Chainlink

Internet computer:

DFINITY

Anonymity, Privacy Concept:

Monero、Zcash 、DASH

Internet of Things Concept:

Helium 、IOTA

Decentralized Storage Brief:

Filecoin、Arweave

Sports fans:

Chiliz