Cryptocurrencies are digital assets recorded in a distributed database called blockchain. What truly distinguishes and governs these networks are the consensus protocols.
What is a Consensus Protocol?
A consensus protocol is a set of rules that all participants (nodes) in a blockchain network must follow to ensure proper functionality. It determines how new coins are created and how records are stored. For example:
Proof of Work (PoW): Used by Bitcoin, where participants solve complex equations.
Proof of Stake (PoS): Used by Ethereum, where validators lock up ETH to participate.
What are Nodes?
Nodes are regular users running blockchain software on their computers. They maintain an updated copy of the blockchain and independently validate transactions. When a new data record is sent, nodes work to reach consensus, and if all agree, the record is added to the blockchain.
How Consensus Protocols Work
Consensus protocols rely on nodes maintaining an updated copy of the blockchain and validating transactions according to the same rules. This ensures that malicious attempts, such as creating extra coins or double-spending, are rejected by other participants.
Importance of Consensus in Blockchain
Consensus ensures that all participants agree on the current state of the blockchain, which is vital for the integrity and security of the network. Blocks in the blockchain contain a verifier code (hash) that depends on the previous block, creating a chain that guarantees data integrity.
Examples of Consensus Protocols
Proof of Work (PoW): Digital mining competition.
Proof of Stake (PoS): Users deposit coins as collateral for validation.
Proof of History (PoH): Uses cryptography to prove that events occurred at specific times, used by Solana.
Proof of Authority (PoA): Trusted validators create new blocks.
Proof of Capacity (PoC): Utilizes local disk space to store potential solutions.
Future of Consensus Mechanisms
The future of consensus mechanisms in cryptocurrencies is expected to evolve with layer 2 solutions to improve scalability and efficiency. Quantum computing presents a significant threat, necessitating the development of quantum-resistant algorithms to ensure security.
A percentage of transaction fees from manual arbitration operations, in addition to the full amounts from License purchases for operations in the automatic arbitration system, will be used to burn Clash Hub Coin tokens. This will accelerate burning, decrease supply, and increase scarcity of the token.
100% of tokens converted to USDT during withdrawals from the staking system, arbitrage system and flash loans will be burned, promoting a continuous decrease in the total supply.
OBJECTIVE OF BURNING
Reduce 90% of the total supply over 1 year through periodic burning and conversions of staking rewards and token affiliate system into USDT. 90% of the supply will be burned, equivalent to 900 million tokens at a price of $0.01, corresponding to 9 million dollars in transaction volume. Then the current model of the affiliate system will conclude and the token will be launched in the public sale phase after the full burning of 90% of the supply.
90%
Total supply of tokens will be burned and released on DEX`s for public sale at a price of $0.02, doubling the capital of Clash Hub Coin Token holders.
