Bitcoin (BTC) is a decentralized cryptocurrency. It is an open code; identified by encrypted and anonymous codes. Since it uses peer to peer (P2P) technology, it enables all kinds of financial transactions to be recorded easily between peers in a secure environment.
In order to understand the functioning of Bitcoin, it is necessary to know the concept of decentralized finance first. The decentralized finance structure is independent from the authorities and not open to manipulation. All transactions are transparent, transfer costs are low, and reliability is high. In addition, since the transactions are not under the control of anyone, they are never closed and there is no limitation on the amount of transfers. In addition, transactions within the network can be observed by everyone.
What is PulseChain and How Does It Work ?
"PulseChain is a fast, open-source, public blockchain and a cost-effective hard fork of the Ethereum. It is the first hard fork to contain the complete state of the Ethereum blockchain, meaning that it holds records of every transaction, user account, and smart contract interaction on Ethereum.While the rollout of Ethereum 2.0 reaches its final stages, the programmable blockchain space is becoming home to several Ethereum competitors. PulseChain aims to solve the issues around Ethereum’s scalability by providing a low-cost alternative to the number-one smart contract blockchain network.Ethereum gas fees can spike dramatically during periods of network congestion. When this occurs, transactions take longer to finalize, and the entire network slows down. PluseChain solves this by enhancing Ethereum’s speed and efficiency. Ethereum has a block time of 15 seconds. However, PulseChain has a block time of three seconds, making it much faster and more scalable.
Furthermore, PulseChain uses a fork of the Binance Smart Chain (BSC) Proof-of-Stake consensus mechanism, Parlia. However, the project has since moved toward a new Proof of Staked Authority (PoSA) consensus mechanism, which introduces native validator staking, rotation, and reward-slashing contracts. PoSA combines Proof-of-Stake (PoS) and Proof-of-Authority (PoA) to offer a next-generation hybrid consensus model that overcomes many of the inefficiencies of legacy consensus mechanisms.
While the Proof-of-Work (PoW) consensus model promotes decentralization, it is often inefficient at preventing attacks for smaller networks. Also, PoW uses a lot of energy and has a large environmental footprint. PoA uses much less electricity than PoW and offers protection against 51% attacks. However, it is often criticized for inhibiting decentralization. Delegated Proof-of-Stake (DPoS) is a variation of the classic PoS consensus mechanism used by prominent blockchains like BSC’s Parlia DPoS mechanism. DPoS is energy efficient and promotes decentralization by allowing token holders to elect validators. PulseChain’s PoSA model shares these properties.
Additionally, PulseChain’s PoSA model uses a validator rotation system to ensure the equitable distribution of activity among nodes. The PulseChain community can replace validators every 24 hours according to the number of PLS tokens staked, which creates additional incentives for staking and securing the network. At the time of writing, PulseChain has 33 validator nodes throughout the network. Anyone can become a validator by staking 5000,000 PLS tokens. Validators earn a share of transaction fees from across the network. However, this initial staking deposit is non-refundable.
Interoperability is an essential component of the Web3 landscape. In the past, blockchain networks and their communities have been segregated. However, interoperability allows blockchain development communities to collaborate and expedite innovation. Moreover, interoperability helps decentralized finance (DeFi) protocols access better liquidity and provide a better user experience for the users of all kinds of Web3 protocols.