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Impossible Triangle in blockchain was solved by Liberum

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Impossible Triangle in blockchain was solved by Liberum

January 03
00:07 2020

What is the “impossible triangle”?

The so-called “impossible triangle” means that in the blockchain public chain, it is difficult to achieve both good “decentralization” and good “security” of the system. “Transaction Processing Performance.” The “transaction processing performance” is often referred to as TPS (Transactions Processing Per Second).

In fact, the “impossible triangle” is not a rigorous conclusion. It is just a summary of the actual operating status of each public chain in the industry. That is to say, it is not necessarily that the public chain cannot do well in the three aspects of “decentralization”, “security” and “transaction processing performance”, but it has not done well in these three aspects at the moment.

Public chain. How is other public chains?

At present, the most famous public chain projects are BTC, ETH, and EOS.

First of all, let’s study the Bitcoin – BTC.

BTC uses a consensus mechanism based on Proof of Work (POW). In the early days of BTC development, an ordinary computer could participate in mining. But later, with the skyrocketing currency price, mining became profitable, so graphics card mining appeared, and later ASIC mining machines with stronger computing power appeared, and eventually unified the rivers and lakes. The mining of ordinary computers and graphics cards is completely history. At present, the manufacturing and production of ASIC mining machines are almost monopolized by Bitmain, and the computing power of BTC’s entire network is almost monopolized by several large mining pools. Therefore, the “decentralization” of BTC seems to be inaccurate to many people.

In terms of “transaction processing performance”, BTC’s TPS is only about 7 transactions per second, which is completely unsuitable for daily high-frequency and small-value transfers. It is this low transaction performance that has caused the BTC community to be divided over the future development of BTC. This disagreement was not properly settled, eventually leading to a hard fork of BTC cash in 2017.

In terms of security, compared with several other public chains, BTC is still the best. On the one hand, the computing power of the entire network is continuously improved with the upgrading of the ASIC mining machine itself, and on the other hand, new mining machines are continuously added to continue to enhance the computing power of the entire network. According to estimates, the current cost of attacking BTC is the highest of all POW public chains.

Next, we explain blockchain 2.0 Ethereum – ETH. Although ETH is also a consensus mechanism based on proof of work. But it can still use graphics card mining, so the situation of computing power monopoly is not as serious as that of BTC. In addition, the recent overall overall shift to POS consensus to solve the problem of computing power monopoly, so it is better than BTC in terms of decentralization.

ETH has a slightly higher TPS than BTC, but because ETH is a smart contract platform, its application scenarios are more complex and congestion is more likely to occur than BTC. As a result, the performance issues that ETH has exploded have received more attention. Because of this, EOS, which was later highly anticipated and concerned, was born.

In terms of security, ETH is second only to BTC.

Let’s take a look at EOS that was so much expected. When EOS first came out, TPS was its biggest selling point. In reality, the EOS of the once-proclaimed million-level TPS has long since changed, because in fact, the TPS of EOS is only a few hundred. But this does not prevent it from ranking highest in terms of transaction processing speed of the three major public chains.

However, in order to achieve such a TPS, EOS has made huge sacrifices in the degree of decentralization. Compared to the 10,000 nodes on the entire network of BTC and ETH, it has only 21 nodes on the entire network. Therefore, it is the most questioned of the three major public chains in terms of “decentralization”.

From a security perspective, because EOS has only 21 nodes in the entire network, it is relatively easier for hackers to attack 21 nodes than to attack thousands of nodes in BTC or ETH. Therefore, EOS is also the worst of the three in terms of security.

Earlier we analyzed the advantages of some public chains and their performance in the “impossible triangle”, which is basically the current status of public chains. But when it comes to the most promising public chain technology in recent years, Liberum must be mentioned.

At present, the basic principle of blockchain technology is the development logic of “low-level public chain → solution → project application”. Therefore, even by 2020, the main focus of the blockchain is still the competition of the underlying public chain projects. It is obviously promoting the development of the entire blockchain industry.

Liberum uses HWD-PoW as the core algorithm, while ensuring the decentralization of the public chain, it still effectively prevents 51% attacks. By separating transactions and smart contracts and designing a fixed block generation algorithm, the block production speed, success rate, latency, server cost, and scalability cost of the Liberum main network have all broken the past technical barriers, greatly surpassing the same underlying public market on the market chain.

Facing the impossible triangle, Liberum adopts the unique HWD-PoW innovative consensus mechanism to try to optimize the balance between security and transaction processing speed while maintaining a high degree of decentralization.

We selected three real Ethereum mainnet scenarios for experiments, and the results were consistent with the official claims. Using the HWD-PoW solution can indeed increase the attack cost by more than 100 times.

In addition, one of the reasons for the inefficiency of existing blockchain solutions is that all nodes need to process the same task multiple times. The sharding technology provides more powerful processing power proportional to the number of nodes in the network by sharding the nodes. Through sharding technology and groundbreaking improvements that separate transactions from smart contracts, Liberum’s advanced hierarchical group chain system has greatly improved the overall transaction processing speed. In theory, TPS can reach tens of millions. However, it is understood that, because Liberum is still in the early stages of development, in order to reduce development pressure and reduce waste of resources, the core team currently has some restrictions. Liberum’s transaction processing speed is temporarily stable at around 20,000 TPS. But even so, this ultra-high TPS has thrown EOS, ETH and BTC far away.

According to the overall analysis, Liberum has an unparalleled high speed in the overall transaction processing speed of the current public chain on the market, while its unique HWD-PoW innovative consensus mechanism maintains a high degree of decentralization while successfully attacking the attacker to double spend. The cost of attacks and 51% attacks has also risen to a level that cannot be surpassed by other public chains. It is no wonder that after the new of Liberum mainnet will launch soon came out recently, there are many technology enthusiasts on the market who highly respect this underlying public chain that broke the “processing speed-security-centralization” impossible triangle.

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