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April 10, 2021, 12:02:52 PM |
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Hello everyone,
We've seen a surge of technological strides in the last few years in terms of how blockchain has been scaling. But as the costs of running these networks have grown, the number of volunteers to provide the open-access nodes needed to keep them decentralized has decreased. These public blockchains that are dominated by one or two operators are slowly veering towards a similar model or image as Google & Facebook are becoming permissioned networks. All of this is being solved by the technology of Saito
HOW IS POW & POS GOING TO BE REPLACED?
The Saito blockchain pays most to the nodes that run user-facing network Infrastructure. These nodes sit on the network where users connect to them and also run commercial-grade access points for other blockchains. To maximize income, nodes compete to attract users providing routing services for transaction data that run on the “Saito Stack”, an open-source JavaScript client that runs applications that can interact with whatever blockchain of their choosing. Profits to access points depend on the value to users of the infrastructure they provide. The market adjusts the provision of infrastructure revenue automatically without the need for programmers to hardcode economic variables.
Just as proof-of-work incentivizes mining and proof-of-stake incentivizes staking, Saito incentivizes the running of open network infrastructure. Importantly, the consensus mechanism keeps it honest: companies cannot compete by blocking off access to transactions because nodes that hoard transaction flow incur less money than those that share transactions freely with peers. Nodes do not earn revenue by adding transactions to the blockchain rather by sharing transactions with peers. By paying for infrastructure without rewarding cheating or monopolization, Saito helps web3 blockchains and projects scale to service users and remain true to the goals of web3 design.
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