Cryptocurrencies are gaining prominence these days as the preferred medium of exchange. With so many cryptocurrencies out there, many persons and would-be users may be at crossroads as to which one precisely suits their unique preferences. This is where a candid review of this kind comes in.
In the review that follows, we are going to examine one such cryptocurrency in details. This is the RaiBlocks. We shall look at its strengths, weaknesses, and the benefits of making it your preferred medium of exchange.
For a start, a cryptocurrency is just a digital currency which employs encryption techniques to regulate the generation of its constituent units as well as to verify the transfer of funds. It operates independently of central banks and other regulatory bodies.
There are quite a number of cryptocurrencies in vogue today. These are RaiBlocks, Litecoin (LTC), Ethereum (ETH), Zcash (ZEC), Dash, Ripple (XRP), and Monero (XMR), to mention but a few!
What is RaiBlocks?
It is one of the several cryptocurrencies that are in circulation today. It is a trustless and low-latency cryptocurrency. It is transacted via the novel block-lattice architecture model. In this model, each user’s account has his own blockchain. The consensus between the various accounts in the chain is achieved through the delegated Proof-of-vote stake voting.
In all, this cryptocurrency is quite suitable for the peer-to-peer transactions. That’s because it provides costless and instant transactions as well as an unlimited range of possible outcomes or capabilities. Moreover, its network does not require extensive resources or high-power mining hardware. It can also process a higher number of transactions at a given time.
How does RaiBlocks work?
RaiBlocks differs markedly from other cryptocurrencies in its functioning. This is because it utilizes the block-lattice architecture as has already been stated. In this architecture, each account holder has his own blockchain or account chain. This account displays the outstanding balance or the balance history. It can only be updated by the owner; not a third party at all! This arrangement is not only safe but also enables the accounts to be updated instantaneously and at different times to the remaining accounts in the block-lattice architecture. It also results in comparatively faster transactions when compared to those of other cryptocurrencies.
Transactions are carried out in two phases. Phase one entails debiting the amount you intend to send from your account. Phase two entails crediting the amount to the recipient’s account. These two can only be performed by you, the owner of the account chain. Moreover, you may perform them any day, anytime even when you are not online.
What are the advantages?
Zero Transactional Fees
Unlike most other cryptocurrencies, RaiBlocks does not levy any transactional fees. This is because its protocol is fairly simpler, light in weight, and costs almost nothing to run. What’s more? Each transaction is accommodated by a single User Datagram Protocol (UDP) and is handled separately from each other. This eliminates any possibilities of constrictions in the blocks.
Great Transaction Speeds
In all, RaiBlocks perform transactions at very amazing speeds indeed. The transaction process starts off by ascertaining whether the network is secure or not. This is carried out by the wallets that pre-cache the anti-spam proof-of-work for the impending transaction. Once both nodes have given the green light for the transaction to be carried out, the money is sent out.
PS: The system deliberately creates a delay for continuous transactions to prevent spam and repeated transactions.
This refers to the ability of the RaiBlocks’ computing processes to generate a range of capabilities. The RaiBlocks transaction lookups match with the data set size logNO (that has a tree-like structure) or the 01 (if it based on the hash table concept). The nodes that are pruned are only required to maintain the latest blocks of each account-chain. This arrangement further reduces the lookup time and any strains on the system resources.
By way of illustration, if the data set were a simple binary tree that comprises 1,000 entries, it would only require 10 lookups. If it had 1,000,000 entries, it would require 20 lookups, whereas if it had 1 billion entries, it would require a paltry 30 lookups!
Can I mine RaiBlocks?
No, you cannot. This is because RaiBlocks is non-mineable. Furthermore, it has attained its maximum mineable limit of around 133,248,290 XRB. Prior to the attainment of this limit, the RaiBlocks funds were issued via the Captcha-faucet distribution system. This ended in October 2017. Anyone who purports to be mining RaiBlocks actually mines other cryptocurrencies and then exchanges them for RaiBlocks to take advantage of the zero transaction fees that are levied by it.
How does RaiBlocks achieve consensus?
To start with, consensus refers to the state of harmony that exists between the various nodes or parties within a blockchain. This consensus is crucial since no transaction may be authorized without their first and foremost being this consensus.
To achieve consensus, RaiBlocks utilizes the voting approach. In this sense, each account in the chain selects a suitable wallet address of any representative node that is online at the time. Once this node has been selected, the vote weight of that selected account is increased by the outstanding balance of the source account balance.
The importance of each vote is further enhanced by the outstanding account balances. This is done deliberately to encourage those who already have more funds in the system to maintain the reliability and honesty of the system. This is because any acts of dishonesty may often jeopardize the reliability of the system and render the investments worthless.
Any excess truncations do not have any impact on the overall security of the network. This is because transactions are settled individually and instantaneously irrespective of the other activities within the network.
Is it vulnerable to attacks?
YES, it is; just like any other computer network or system. Malicious parties may attempt to infiltrate or hack the system for the sake of personal gain or death of the system.
What are the long term goals?
Entrenching of the Internet Standard Protocol
The first long-term goal is to entrench the cryptocurrency as an internet standard protocol. This protocol it is hoped shall be infrequently touched. It shall also, or so it is hoped, be managed by a broad group of persons located in different geopolitical regions. They shall not be allowed to either add or interfere with the network parameters. This is purposely to avoid any unnecessary frictions.
Addition of the IPv6
The cryptocurrency also aims at incorporating the Internet Protocol version six (IPv6) multicasts to its transaction broadcasts. This shall let it announce the transactions to anyone in the world who needs it.
Enlist other Payment Providers
It seeks to also have the existing payment providers to accept the RaiBlocks cryptocurrency much the same way as they do the ordinary fiat currencies.
Win Public Trust
Finally, it aims at winning the trust and confidence of the general public. It seeks to do this by granting its access to the large population of persons who are currently excluded by the mainstream financial systems.
Differences between Bitcoin and RaiBlocks
Organization of the Transactions
The way the two cryptocurrency technologies organize their transactions differs broadly. Bitcoin organizes its transactions into blocks. Each block is assigned an average processing time of approximately 10 minutes. In order for a transaction to be effected, it has to be included in a block that has to be subsequently mined. With RaiBlocks, each transaction is considered a block in its own right. This block does not have to be queued or mined; it is processed instantly.
Speed of Processing Transactions
All factors considered, RaiBlocks is faster than Bitcoin. This is due to the fact that transacted are neither queued not placed into blocks. Moreover, once a block has been verified, it is immediately processed without the need to pile up additional blocks in the network system.
Security of the System
In all, Bitcoin network is more secure than that of RaiBlocks. This is because it is derived from computing hashes that are powered by hundreds of terawatts of electrical energy. In order to crack such a system, you will need to accumulate at least half of the system’s computational power.
RaiBlocks, on the other hand, secures its ledger by means of the delegated proof-of-stake (dPoS). Cracking such a system is slightly easier. You will only be required to amass slightly less than half of the system’s online voting power.
RaiBlocks delegated proof-of-stake (dPoS) consume way too little energy. This enables the nodes to run on inexpensive and low power hardware. Bitcoins computing hashes, on the other hand, consume plenty of electrical energy. This is subsequently passed on to the end user in form of high transaction fees.
Differences between RaiBlocks and IOTA
The two cryptocurrency technologies achieve their consensus in totally different ways. IOTA achieves consensus by proof-of-work stacking of consecutive transactions whereas that of RaiBlocks is attained by voting on the conflicting transactions.
Proof-of-work stacking requires the maximization of the continuous network hash rates. This brings along some inflated expenses which are in turn paid for by the users of the network. By reason of RaiBlocks not relying on the high-network Proof-of-work to maintain its security, it has comparatively lower operational costs.
Even though RaiBlocks’ block-lattice and IOTA’s Tangle are Directed Acyclic Graph (DAG) data structures, they differ in their operations. IOTA’s two-tip approach has to first and foremost be discovered by probabilistic algorithm e.g. Monte Carlo Random Walk. RaiBlocks’ block-lattice, on the other hand, is organized in such a way that it does not require a tip discovery.
Vision and Focus
They have different outlooks for the long-term future of cryptocurrency. IOTA’s long-term goal lies in the machine-to-machine communications, data storage, commerce, and to be the leading protocol of Internet of Things (IoT) devices. RaiBlocks’ focus, on the other hand, lies on a quick, reliable, peer-to-peer payments as well as rapid exchange transfers for arbitrage.
Differences between Ethereum and RaiBlocks
They mainly differ in their underlying concept of operations. RaiBlocks simply is mainly concerned with the effective transfer of value. Ethereum, on the other hand, requires its users to mine it. This calls for increased electricity input. This has the impact of devaluing the currency altogether.
It is our hope that you have found the review above quite satisfactory. Given the very affordable and simplistic natures of Raiblock, you are strongly encouraged to consider adopting it as a standard part and parcel of your preferred medium of exchange. You will never at all live to regret that decision.