Two Birds with One Stone: How 5ireChain Prohibits Cartelization of Cryptocurrencies
Cryptocurrencies were originally designed as a fully-functional financial system to replace the traditional financial system. In describing current trends in DeFi, author Joel Khalili describes the ambitions of the original architects of cryptocurrencies to “build a fully-fledged financial system controlled by no single entity.” Crypto architects hoped to do away with the traditional financial system’s bureaucracy, inefficiency, and singular focus on making money for the stakeholders.
In tandem with these goals, we are witnessing a fifth industrial revolution (5IR), the movement towards the humanization and personalization of technology. While the fourth industrial revolution (4IR) was inclined toward dehumanization, the focus of 5IR is directing technology towards the service of humanity.
Meanwhile, the skyrocketing use of electricity to power mining operations for cryptocurrencies is greatly undermining the critical global need for conservation and adopting a more sustainable lifestyle.
5ire and its blockchain 5ireChain are a bridge facilitating the world’s shift from 4IR to 5IR and directly addresses environmental sustainability at its core. 5ireChain’s primary goal is to be a user-centric, sustainable ecosystem.
One rapidly adopted solution for more sustainable ecosystems uses the Proof of Stake (PoS) consensus algorithm. PoS was created to reduce the negative impact of mining inflicted by cryptocurrency’s Proof of Work (PoW) protocol by verifying transactions via stakes, or holdings, instead of the computations used in PoW. . PoS is fundamentally biased towards stakers with higher holdings. With the formation of groups with the largest stakes favoring each other in forming cartels that will take over the consensus. The experts are sounding alarms about the algorithm’s tilt favoring wealthy stakers at the expense of those holding fewer coins.
As Bitsonline puts it, “There also exists another insidious activity enabled by Proof of Stake. Under this algorithm, changes to protocol code is not determined by miner consensus, but by a vote from staking wallets. Additionally, the protocol weighs votes based on the holdings of staking wallets. So whoever has the most money has the most influence over a vote.”
Brand New and More Democratic Consensus Algorithm:
With its newly-developed Sustainability Proof of Stake (SPoS), 5ireChain provides a multifactor consensus protocol where a node is assigned weights based on stake, reliability, randomized voting, sustainability score (Environmental, Social & Governance), and previous nomination. This allows for both, staking of coins, as stake represents a 50% weight when the chain is choosing the nodes that will validate the transaction while balancing out the power of the monetary stake. Including the factors such as sustainability score helps ensure a democratic, decentralized system, one in service to humanity.
In a nod to ensure that sustainability is at its core, 5ireChain’s consensus algorithm is equipped with off-chain validators and governance mechanisms to empower working groups and decentralized organizations that work toward sustainability and the implementation of the 2030 Sustainability Agenda, thus bringing a shift from a for-profit to a for-benefit paradigm.
By creating a blockchain with a paradigm shift of fundamental concepts, 5ireChain leverages the true power of blockchain as a source of truth and equity, multi-layered oracles as the tools to bridge the divide.
More information about 5ireChain can be found by clicking on the following links:
Website: https://5ire.org
White paper: https://bit.ly/5ireWP
LinkedIn : https://www.linkedin.com/company/5ireChain
Twitter : https://twitter.com/5irechain
Discord : https://discord.gg/h5gY4B6mFY
Telegram : https://t.me/OfficialFireChain
