With the anticipated mainnet’s launch of Satoshi CORE on the getting closer, proof of work (“PoW”) and proof of stake (“PoS”) will soon finally meet their optimal synthesis, upholding the vital elements that Web3 needs: Security, Scalability, and Decentralization.
Work Together, Stake Together
The first half of the Satoshi Plus equation is proof of work, as expounded upon in why Proof of Work and Hardening the Core Network. The capability of incorporating Bitcoin’s consensus mechanism hardens the decentralization of the Core network. The other half of the equation, however, is equally important. Although proof of stake by itself may trend towards centralization, when properly crafted and balanced with PoW, proof of stake brings token holders directly into the network security process and scales overall blockchain capabilities.
To briefly recap how proof of stake functions, validators that “stake” tokens as collateral are selected for confirming transactions and otherwise securing the blockchain’s immutable ledger. When validators are selected, a stick and carrot approach aligns validator incentives with those of the network’s stakeholders as a whole. If acting Byzantine or engaging in other misconduct, validators can be excluded from participating in consensus activities and may have their staked tokens slashed. When validators properly validate transactions as they are incentivized, they receive rewards.
Satoshi Plus’ implementation of delegated proof of stake (“DPoS”) takes PoS a step further. Traditional PoS requires a minimum amount of tokens to qualify and run a validator. DPoS enables any token holder to simply delegate their staked tokens to validators, thus making the staking process far more accessible and secure. By removing the need to run one’s own validator or pooling one’s stake with a centralized validator, delegation democratizes consensus. Furthermore, Core’s staking rewards process carefully incentivizes delegators to themselves decentralize their stake allocation so that no validator receives an outsized share of staking power. Delegation, democratization, decentralization.
With Core being predicated on the democratization of the consensus process, additional measures are being considered by the DAO to make delegating as accessible and rewarding as possible. Strategic partnerships offer the opportunity to bring Web2 simplicity to the very Web3 experience of securing the Core network. Future announcements by the @Coredao_Org will provide more details of these partnerships.
Satoshi Plus Symbiosis
Staking on Core is a direct and active way to support Core’s aspirations. In this way, proof of stake is also proof of principles, conviction and optimism. It is an expression of philosophical alignment. It is actively proclaiming that Web3 deserves a truly secure, scalable, and decentralized future. With early skin in the game, Core’s original stakers get to be part of the founding of a new era in the blockchain world.
Given the importance of staking to the network’s overall health, stakers receive the chance to earn CORE token rewards. When stakers delegate to a validator that succeeds in verifying transactions, they participate in the work required to operate the chain and consequently receive part of that validator’s CORE rewards. Once stake is delegated, no additional work is needed. Put simply, the network is better secured and the stakers are the beneficiaries.
Given the benefits both philosophically and to the broader utility of the chain, staking CORE presents undeniable benefits to the community. For CORE holders and true believers, staking is the best way to both advance and participate in Core’s long-term success. And the earlier, the better. Mainnet is almost here! The time to stake is approaching fast! – First published on CoreDAO’s Medium page.
We recommend that Satoshi CORE participants worldwide, join our Telegram Group, the Announcement Channel for vital updates with regards to the upcoming mainnet launch, Delegating of CORE, DEX Swapping, Listings on Exchanges, and other events on CORE.