What is Happening?
Klever released its blockchain mainnet with prebuilt and ready-to-use smart contract functionalities for developers to build web3 applications. The KleverChain is secured through the Proof-of-Stake consensus mechanism composed of 21 validators that work on a randomised selection of master nodes dynamically changed every Epoch.
A user must first submit an application to be considered a contender for the position of a master node on KleverChain. The cost of 100,000 KLV is charged and destroyed during the application procedure for electing a masternode. Candidates for Klever Finance Blockchain master node must have 1,500,000 KLV in self-staking before being deemed active by KleverChain. Through self-staking and delegated-staking, master nodes must meet the barrier of 10,000,000 KLV before they can create blocks in the consensus. Masternode owners may indicate whether or not delegated staking is permitted and the maximum number of nodes that can be assigned to each entity.
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What is Klever Finance?
Klever Finance is developing blockchain solutions and crypto goods for millions of consumers across the globe. Klever has created products and services on top of the world's leading blockchain networks over the years and presently hosts 100+ blockchain nodes on top of 20+ key blockchain protocols to guarantee maximum uptime for our worldwide consumers' every crypto demand. With over 160 developers globally, Klever provides extensive knowledge of blockchain technology, cryptography, and immutability for supporting high performance, speed and security for web3 applications.
Understanding the Impact of Masternodes on the Consensus Mechanism of a Blockchain
Masternodes are very beneficial for a blockchain startup building a decentralized blockchain network. Web3 applications working on top of a blockchain network use the master node as a full node to validate transactions. Due to the proof-of-stake consensus mechanism transactions are completed more efficiently and scalable on a blockchain network as compared to proof-of-work (PoW). The transaction is verified by each and every node on a blockchain network. If one node refuses to confirm the transaction, the specific transaction is orphaned by the blockchain network.
It is critical to note that the master node network allows for scalable transactions if the number of master nodes is centralized. However, this leads to a high centralisation risk as it increases the risk of a single point of failure. Nevertheless, this can be tackled with new consensus algorithms that solve the 51% attack on PoW and PoS blockchains. Further, it is critical to think about the consensus algorithm to govern the master nodes as per the principles of decentralized governance. Klever uses Practical Byzantine Fault Tolerance (PBFT) as a method to evaluate and grant bonuses to master nodes as part of its decentralized governance framework.
Why Proof-of-Stake is the Future for Decentralized Governance
As per Cong. T Nguyen, et al, Internet-of-Vehicles networks are becoming increasingly important as Internet-of-Things (IoT) and networking technologies develop at breakneck speed. This has forced the automotive industry to develop smart vehicles that are capable of sensing and communicating, necessitating an IoV blockchain-based platform.
Vehicles and RSUs in an IoV network might share information via a blockchain-based approach which operates on a decentralized network. To tackle the governance approach, it is beneficial to use a form of Proof of Stake called Delegated Proof of Stake (DPoS), where the stake is RSUs' reputation in the blockchain network. Under this model, it is necessary for an RSU to make a deposit, which will be forfeited if the RSU engages in a malevolent activity, and for the RSU's reputation rating to exceed a certain level. Block proposers are picked among the applicants through the round-robin selection procedure to propose blocks that include data sharing records and reputation ratings for each round. The new block is subsequently added to the chain by a vote of the other candidates. This is a novel way of governing network members in a decentralized governance principles-based manner. PoS and DPOS are the future of the consensus mechanisms when it comes to developing applications for the web3 and the IoT industry.
Final Thoughts on Klever Blockchain Mainnet Release
The Klever mainnet blockchain release is a sign that the web3 ecosystem is going ahead with full force! Building the infrastructure for developing web3 applications for different economic sectors will create the next foundations of the technological revolution. In my opinion, the majority of blockchain networks such as KleverChain and Ethereum using a PoS consensus mechanism instead of PoW indicates a trend toward less energy-consuming blockchains which are secure and scalable in nature.
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Image credits: Pontus Wellgraf, Dmitry Demidko, and Pierre Borthiry.