A range of consensus mechanisms are being explored by various startups as a response to Bitcoin’s energy inefficient and costly solution in Proof-of-Work (PoW), and the problematic Proof-of-Stake (PoS) mechanism which favours the crypto-rich, who are made only more likely to get richer.
Bitcoin may have taken a firm grasp of the lion’s share of the cryptocurrency market, but its PoW requires mining that now sees an enormous level of energy consumption higher than whole countries. This has motivated startups in the blockchain space to explore other options.
Proof of Contribution is not one that features commonly at the moment and, beyond that, CyberVein offers a singularly unique implementation. Users have to donate work that is useful to the system and on CyberVein it is disk space. This is then turned into a secure, collective home for decentralized databases.
Storage capacity is a scarce resource, so any attack becomes infeasible due to the massive cost for the attacker and without any guarantee of success; ‘full nodes’ -- identified as users who contribute more disk space to store the entire ledger -- work as a failsafe to the chain and dismiss any bogus transactions.
The idea follows that users are given an incentive to become trusted full nodes by being offered a higher payout of CyberVein Tokens (CVT) according to how much space they contribute.
What most significantly sets a DAG-based network apart from blockchains is this fact, that network nodes do not have to store the entire network’s transaction history. Nodes only need to see and verify their neighbour nodes -- aka. the transaction thats comes before and the one that comes after.
This is a form of sharding, which is also the name of a solution proposed by Ethereum that might not be ready until 2022. Being inbuilt to a DAG architecture makes it an attractive and scalable answer to traditional blockchains that can be implemented right away.
So by having two layers of verification to the network -- the standard nodes who verify their neighbour nodes’ transactions, and full nodes who store and verify the entire network -- it is possible for the network to efficiently grow to accommodate billions of users.
In theory, CyberVein is only limited by the number of users making transactions.
Proof of Contribution promises a solution that removes redundancies and unfairly stacked odds, which are problems evident in PoW and PoS respectively. Instead, only useful actions fuel the network.
CyberVein’s unique approach means that databases can be stored across millions of user devices, who donate storage space in exchange for tokens and in the process serve to verify and process other transactions.
The beautiful simplicity of The CyberVein Model is unlike any other consensus solution in distributed ledger technology. It might just be the perfect answer to blockchain’s biggest challenges.
The CyberVein Team