Skycoin is set to showcase Skycoin Fiber, a development released by Skycoin that will look in depth at the fundamental issues with blockchain. In the past, distributed ledgers have been very difficult to maintain and operate, yet due to the innovations of blockchain technology they are quickly gaining traction, with widespread usage and utilities.
Operators, referred to as miners, run complex algorithms to solve a verify demanding mathematical equations (transactions) across a distributed network. Blockchains rely on one of several consensus protocols to validate “blocks” of information. There are several types of consensus protocols, including PBFT, PoW, PoS, and DPoS, among others.
Each method of establishing consensus comes with their own benefits and drawbacks.
Back in 2013, Co-founder of Ethereum Vitalik Buterin, along with a few other forward thinking blockchain developers, set out to create a new kind of platform, one which was not set back by the detriment of Bitcoins technology. Their team aimed to build decentralized applications on the blockchain platform. This was Ethereum, also known as “Blockchain 2.0”, Ethereum implemented a slightly better mining protocol, but more importantly added “smart contracts” to the picture. Smart contracts enable complex variables to be processed with logic and pression, then executed to the value of the contract. Rather than just basic transactions. Ethereum is the first platform for distributed applications, and hosts a long list of over 1,000 sub-chains ranging from supply chain solutions to fintech to games.
Ethereum consistently made improvements in the amount of power need to verify the transaction, one big shortcoming still exists: network congestion during increased transaction volume. Congestion is very important to consider. If the main Ethereum blockchain is congested, leading to a scalability issue, so too are the Ethereum subchains. When the network is slowed to a crawl by ERC20 tokens and dApps like CryptoKitties, certain transactions are prioritized based on the amount of Gas the user is willing to pay for the transaction verification. Participants compete to determine whose transaction will be verified soonest, based on how much they are willing to spend.
One of the biggest problems with innovation is the lack of creative thinking, and without it we would not have had the technical innovations we see today. A group of early blockchain developers from Bitcoin, Ethereum, and other well known projects had the imagination and foresight to realize that there were still glaring flaws in distributed networking and consensus present, so they created Skycoin Fiber.
The Skycoin fiber network was built with precision from the ground up to be a solid, customizable and infinitely scalable platform. The advantages of Fiber is in its protocol allows it to easily overcome the challenges not solved by Bitcoin and Ethereum. In order to eliminate the slow speed and high cost of transactions, with the Fiber network, Skycoin’s team created a whole new world of possibilities with their protocol Obelisk. The Obelisk protocol is based on a “web of trust” which relies on certificate authority, thus reducing the amount of work (cost) required for consensus.
Skycoin’s transactions are take split seconds and each ICO/dApp receives its very own blockchain, eliminating the problematic parent-chain/child relationship. Fiber created a fully integratable symbiotic selection of peer chains. Fiber is built for complete cross-chain interoperability, by atomic swaps and much more, without an impact to overall network performance.