Open-sourceowy design and cryptocurrency Holo they look like an army of people has been doing this for 100 for years. The project is amazingly refined and thought out in detail. It is impossible to raise all issues in one article. I tried to extract the most important information, I would like to point out that this is not a complete picture and provides for further articles on Holochain in the future. Let me start with my little summary: if we accept that BTC is the 1 cryptocurrency, Ethereum 2-Generation a IOTA 3 generation is Holo (HOT), which after swap with erc-20 will be based on copyright Holochain he will be firmly crypto-valued 4-or even 5-generation.
1. Proof of Work, 2. Proof of Stake, 3. Holochain!
What is Holo? What are the main assumptions of the Holochain project and Holo cryptocurrencies
What is Holo?
Holo it is cryptocurrency, behind which is the project of a decentralized hosting platform. This project is developed based on proprietary technology Holochain, this technology is a completely new solution on the cryptocurrency market. In the project itself for the word Holo we can alternatively use one of three definitions depending on the context
- Holo is an organization operating as an infrastructure provider for the Holochain network and the main reserve account for the Holo ecosystem
- Holo is a technology created to provide shared hosting services as the main goal of the network Holochain
- Holo is cryptocurrency (Currently still based on the Ethereum network), which in the future will enable the purchase of shared hosting services in the ecosystem Holo
The Holo project itself has two main assumptions:
- Introduce for general use in full decentralized applications (not just smart contracty), acting in the current internet network.
- Ensure in Fully scalable billing infrastructure for hosting and managing decentralized applications on a global scale.
The developers of Holo quite reasonably perceive problems related to the implementation of technology blockchain on a wider scale so far.
Two common problems are considered to be:
- energy consumption of cryptocurrency network infrastructure ("cryptocurrency mines" devour more and more electricity, various statistics say that only the BTC network consumes as much electricity as a small state),
- scalability and hence the number of available transactions per second, i.e. tx / s rate (for BTC is about 3-5 tx / s while the payment operator VISA supports about 2000 tx / sa boasts that it will even support 56 000 tx / s)
- in case of cryptocurrency PoS (Ang. Proof-of-Stake - proof of possessed share) the main problem is the requirement to establish uniform principles of consensus for the whole network, which leads mostly to establishing rules that prefer the so-called EA (Ang. Early Adopters- early user).
How has it been so far?
In commonly accepted projects, cryptocurrencies currently available on the market we have two approaches: one thing PoW (Ang. Proof-of-Work proof of the work done) or so-called digging cryptocurrency hardwarewhich is currently very energy intensive. The second is PoS czyli mining using the owned coins (shares) in a given network. Kicking off the cryptocurren is done here using some algorithm adopted as the main rule in a given network. The algorithm then has the task of separating coins between network users contributing to its maintenance. In order to become a network node that will be responsible for its maintenance, it is enough to have the appropriate application enabled, which is also usually the portfolio of a given cryptocurrency. The user with the most coins gets the most - the oldest economic problem is consolidated here: the rich get richer and the poor have no chance to catch up with them, which makes them poorer. In such a model, it was usually enough to buy the right amount of coins of a given project in its early phase and as EA you can only cut off coupons later.
For a regular user using the network, applications or SC (Ang. SMart Contract - intelligent contract) it probably does not matter how the network works. The user pays a very small amount, which is a commission for a transfer / transaction in a given network. The commission for the transaction is just a reward for the "miners" who maintain the given network. Both single and second solutions (PoW and PoS) were created with the scalability, speed and stability of the network in mind, Users participating in maintaining the network infrastructure do not want to do it for free, hence the need to use PoW or PoS to fairly reward you for your contribution to network maintenance.
In the meantime, when blockchain technology developed into the best various cryptocurrency projects such as Cardano (ADA) or Lisk (LSK) they introduced their ideas to improve the PoS method. Ideas rely, among other things, on the need to cast votes for delegates or exhort the leader of the so-called stake poola. Some solutions are better, others are worse. Unfortunately, no PoS is completely fair and always favors a group from broadcasting. If we know the algorithm of operation of such PoSa, with appropriate measures, we can build an infrastructure that will allow us to benefit from such an algorithm. In this way, the need to build a consensus makes us dependent on others in the network
Both in the PoW and PoS methods, the network may become a victim of the influence of a group of people with a sufficiently large capital. Of course, in the case of PoW, this means a so-called attack. 51% of the network power, where hypothetically 51% "excavators" creating the network infrastructure at a given moment can "take over" this network. In the case of PoS, such an attack is impossible, however, as I mentioned above, when we know the operation of the consensus algorithm, we can coordinate our actions to receive the largest part of the prize from the network, set votes over important aspects of the future of the project, etc.
Limited scalability leads to the fact that the network "clogs" when busy. On the example of the BTC network, it looks like this: the customer wants to make a transaction, there are thousands of such clients in a given 100 second, while the BTC network can handle according to various estimates up to 4-7 transactions per second so we can imagine what the end result is. Impatient users set a larger commission for the transfer to encourage the excavator to dig it up and speed up the confirmation of his transaction. There are hundreds or thousands of such impatient users after a while so as a result the network speed does not increase because it is constant and only the commission for the transaction increases, the "miners" are happy and the users swear. At the peak of BTC's popularity during the last bubble in 2017, individual transactions could cost over $ 100 !. At such moments, the man appreciates his old, decent payment card VISA and begins to think about the sense of this whole blockchain and thinks where he is Satoshi Nakamoto? Why will not he do anything about it?
Comparison of Holochain and other systems based on a distributed registry:
|The possibility of building decentralized applications:||YES||YES||NO||YES||NO (they plan in the future)||YES|
|The consensus model:||Based on network hosts and network users||PoW||PoW||Gossip protocol - based on user transaction graphs and time stamps||PoW (small scale)||The original Tempo algorithm|
|currency amount and value:||Based on the value of the entire Asset-Backed network||The amount determined by the current token resources in the network. The price of tokens depends on the adoption and popularity of technology. No security.||The amount determined by the current token resources in the network. The price of tokens depends on the adoption and popularity of technology. No security.||classified||The amount determined by the current token resources in the network. The price of tokens depends on the adoption and popularity of technology. No security.||classified|
|Scalable model without any form of centralization||YES||NO||NO||NO||YES (but requires a central node for network security)||NO|
|Uses a standard blockchain||NO||YES||YES||NO||NO||NO|
|Current version||ALPHA 2.0||Main Net in use ver. 1.8.17 (in plans for the 2.0 version from shardingiem - dividing the book into smaller parts)||During development||No roadmap missing, information about development||Main Net in use||Main Net plan on Q4-2018|
Holochain went one step further ...
Holochain I do not want to waste energy on confirming transactions, I do not want to introduce a new one consensus algorithm because both solutions at the global scale absorb some computing power, which is irretrievably lost and unproductive. Consensus, on the other hand, is always a solution that favors one of the user groups, that is, it will never be fully fair and may lead to such a crypto-cursed murder.
So how can you protect the network, maintain its stability, speed and to ensure total decentralization and independence?
Holo solves this problem through a new approach to blockchain technology. Articulate about IOTY I presented how DAG (Ang. DDirectly Acrylic Graph – directed acyclic graph) realizes the action IOTy blockchain. Let me remind you in brief: in the IOTA project, each user confirms two other transactions from the blockchain. In this way, the network is "light" and fast. However, it has a major disadvantage: it is vulnerable to attacks that resemble in its operation DDoS attacks on websites. This means that to properly secure the IOTA network you need a central node that constantly checks all network elements and is able to detect and prevent such an attack. This solution has been safe so far, but in this way the IOTA network loses such an important aspect of decentralization.
The Holochain network resembles DAG but there is no single blockchain. Each node or user has its own hash chain (not to be confused with the blockchain!). The hash chain is similar to a blockchain - both use a cryptographic hash function to create a connection between nodes. However, blockchain (used by Bitcoin and other cryptocurrencies) additionally supports the consensus around the public transaction book and contains a set of rules for data processing. In Holochain zi am trying to manage a global consensus for every change in a huge blockchain book, each participant has his own signed hash string (countersigned for transactions with others). After saving the data to local networks, it is made available in DHT (Data Hash Table)in which each node runs the same validation rules (just like blockchain nodes have the same validation rules). If someone breaks these rules, DHT rejects their data and the hash string from such a node is rejected.
What are the advantages of Holochain over Blockchain?
- Lightness of the network - you do not have to store a heavy transaction book in each node, you do not need to save the network status from the previous block for the entire network. It is assumed that the network is as fast as its weakest node. If one node is able to execute only 4 transactions per second, then the entire network will be able to execute only that amount of transactions per second. In the holochain, this problem does not occur, transactions can be carried out independently of each other and this means that:
- Not all network nodes must see all transactions as they do in a blockchain network. This solution makes that scalability can grow with the increase of users (nodes) of the network exactly the same as it happens in Tangle IOTA. The correctness and security of the transaction is supervised DHT that is, a scattered hash table (the hash table is very small compared to the blockchain transaction book, besides it is stored in the form shredded that is, pieces scattered throughout the network), a solution that has been working well so far, among others in P2P networks such as BitTorrent
- No standard PoS, no standard PoW, which forces the network to some kind of consensus. Each user confirms the transactions of other nodes from "his" environment on his own hash chain.
- The number of transactions can theoretically exceed 56 000 tx / s, which means that it will break the record set by VISA
The main function of Holo is hosting space and power on the web!
How does Holo fall out from the competition? I will present a small comparison taken from Green Paper Holo to bring the possibilities closer Holochainu compared to Ethereum (2 blockchain generation from SC) and clouds Amazon (technology commonly used currently for such solutions):
|Ethereum (ETH)||Holo (HOT)||Amazon Web Services|
|Architecture:||Distributed register - Blockchain||Linked hashs with entries to the hash table||Centralized database server|
|System complexity:||High by which the system is slow you can accept the notation pattern O:
O (n * m) plus
O - notation
n - the amount of all transactions
m - the number of all nodes
|Low by what the system works faster, you can take the notation pattern O:
O (n log m)
O - notation
n - the amount of all transactions
m - the number of all nodes
|Low by what the system works faster, you can take the notation pattern O:
O - notation
n - the amount of all transactions
|The cost of hash calculations (energy consumption):||Very high||Medium - borne by all users||Low|
|Exposure level:||High - public||Medium - access to data is determined individually||Low - private data|
|Flexibility for changes / improvements:||A fixed contract||Possible code replacement||Dynamic code|
|Interoperability (accessibility for platforms):||High between contracts based on the Ethereum network||High between decentralized applications based on holochain||Niska|
As you can see, the currently developed Amazon technology still has many advantages over both Ethereum and Holochain, but unfortunately it does not provide decentralization and thus condemns the dependence on the Amazon company. Regarding the notation record, we can analyze this on a simple example where we have 1000 nodes and 1000 transactions to implement:
In the case of Ethereum, the execution time will be: 1000 * 1000 = 1 000 000 hypothetical time units.
In the case of Holochain, the execution time will be: 1000 log 1000 = 1000 * 3 = 3000 hypothetical units of time, which means that Holochain is able to perform 333 transactions faster than the Ethereum blockchain. It must be remembered that this is not an absolute value in transactions per second but a relative value that can be calculated in relation to another solution. This does not mean that if the ETH blockchain has 15tx / s, then Holo will have 4995 tx / s, on the contrary Holochain can have a tx / s value much higher.
In the case of amazon clouds, the execution time will be: 1000 of the hypothetical units of time which gives us the fastest ratio. You have to remember that Amazon services are centralized and depend only on that company.
The main actors of the holochain:
In the standard blockchainie such as Bitcoin network we have basically two types of system actors: "miners" and users. Users perform the transaction, pay a commission (or not pay as in the case of IOTA) and have different types of wallets installed with the book blockchain. "Miners" is it PoS or PoW ensure network operation and transaction confirmation. In the holochain we can distinguish a greater number of types of actors are them:
User - as in the ordinary blockchain it is the final participant of the holochain system and all related applications, transactions, etc. Unlike blockhcain, the end user does not have to be fully aware that he uses a holochain based application because such an application can function in the browser on any website, it can be made available free of charge (if its creator expresses such a desire). Users wishing to use paid applications and services offered by holochain should have a positive token balance Holo Fuel (currently ERC-20 Holo token (HOT) on Ethereum blockchain), which in the future is to be used for all settlements in the Holochain system.
Host - ensure computing power and a place for decentralized applications. Host can share any machine: computer, server has no restrictions. The Holo organization sells ready-made products machines for hosting computing power and disk space called Holoportami. Interestingly, each host can set its priorities (filters) for hosted applications. Each host will be able to provide, for example, free computing power and a network place for the application or a larger enterprise of its choice - it will be possible, for example, to "give away" computing power for a selected scientific project, ie SETI, P2P Wikipedia, etc. There is no algortymu nor mechanism which tells hosts to support all or selected applications on the network Holochain. Each host can set its own price for "resale" of computing power and disk space according to its own price and utility preferences. In practice, however, it will be available autopilot functionwhich, when activated in an automated manner, will select the applications to be supported by the given host. Automation will be useful for large hosts with the highest computing power and disk space on the network because it will help them manage their infrastructure in a profitable way. Each Host after 3 months of operation will begin to receive a prize in the form of Holo Fuel. They are also the only actors in the system who are able to exchange Holo Fuel through Holo reserves. Why? I explain later in the article.
Application Provider (ang. application provider) (not to be confused with the application developer!) - application providers are responsible for the service and security of the applications they publish in Holo. Suppliers deciding to use Holo infrastructure must pay hosts for publishing the application. For the purposes of such a transaction, they must pay to the Holo Fuel hosts, they will be able to obtain these credits by purchasing them from Holo Reserve Accounts (Holo Reserve). In the holochain, you will be able to keep track of whether the above hosting service fee has been paid for the Host. In the event that the fee was not and Host would remove the application, the situation is indisputable and does not arouse suspicion of users. The provider of the application will be able to set a fee for the application in Holo or any other currency, e.g. PLN, USD, etc.
Application creator application developer) these creators will create applications commissioned by the Holo organization. It is dictated by the need to speed up adoption of the holochain in the first stage. Holo claims that the number of such creators will be negligible at a later time. The developers will receive remuneration in the form of Holo Fuel credits, which can be converted into host services available in Holochain.
Infrastructure provider Infrastructure provider) Holo as an organization will be an infrastructure provider that provides a connection between the Internet and holochain. It will also provide Holo reserves (Holo reserve accounts) and correct settlement of PoServ loans from hosts. Accounts with reserve are fully transparent and everyone can trace the transactions.
Holo reserves Holo is a special type of holochain user who has an initial Holo Fuel credit limit large enough to meet the needs of both pre-sales and hosting. A special algorithm is calculated based on the size of the network, application availability, number of users, hosts, etc. current demand for Holo Fuel and adjusts its amount in the reserve.
Variable number of Holo cryptocurrencies in circulation
Yes Quantity Holo Fuel tokens in circulation it will be variable and not rigidly fixed in advance! Here we explain the mystery of a strange construction where Holo Fuel hosts can only be mentioned in Holo reserves. Hości are the only actors in the system who are able to convert Holo Fuel into another currency via the Holo Reserve. There is a simple revenue and expense ledger system for cryptocurrency technology here. Each Holo Fuel is thus covered by the real computing power of the host in the network. There are no empty, useless tokens. As the network of holochain increases and the number of applications, tokens will come in circulation, as the network of holochain and applications decreases, tokens will be lost in circulation. There is no need to send additional coins to any addresses. The amount will be regulated by itself through a simple exchange mechanism Holo Reserve -> Application Provider -> Host -> Holo Reserve. Each time the host pays the right amount of Holo Fuel on the Holo Reserve account, the right amount of coins will be removed from circulation and converted into any other currency. In this way, the negative balance on the reserves will also decrease. In the other direction, if the Application Provider or User wants to purchase Holo Fuel from Holo Reserves, the negative condition will increase on the Holo Reserve account and the amount of Holo Fuel in circulation will increase.
The following graphic taken from the Green Paper Holo presents the mechanism of operation and circulation of Holo Fuel in the Holochain ecosystem:
- The project is very polished in detail.
- The team is passionate as it is in open-source projects. You can read between the WhitePaper and GreenPaper lines that there are many specialists in the areas of: mathematics, software engineering, financial and social engineering.
- An interesting model of the holochain itself single hash chains instead of the scattered blockchain book.
- High hopes for outstanding scalability and successful adaptation of the project.
- Attitude for the whole ecosystem! Holo Krytpowaluta (now HOT on erc20 in the future Holo Fuel on Holochain) is just a tool here and it's one of many.
- Very extensive GitHub and project documentation.
- The variable number of circulation coins is an interesting and new approach when it comes to the price increase, unfortunately, even with mass adoption, the price can grow very slowly due to the increasing number of coins. Unfortunately, it is difficult to predict whether and how the token price will develop. A big plus is that the token has a real value in the form of computing power and disk space, which it guarantees Holo reserve
- Holo as an organization is older than Bitcoin, apparently the project of cryptocurrencies and the Holo ecosystem was created long ago independently of Bitcoin
If you want to buy Holo (HOT) for testing and speculation purposes then you can do it on BINANCE