Core (CORE): Solving the Blockchain Trilemma with PoW & DPoS

If you're interested in decentralized autonomous organizations (DAOs), Core DAO is worth checking out. The Core network aims to be one of the most secure and inclusive decentralized finance (DeFi) communities. Though it's still in the early stages, this blockchain has some very promising features. Keep reading to discover all the details.

What Is Core?

History of Core 

Core is a very new blockchain project. Its mainnet was just launched on Jan 14, 2023. Despite this, Core has already been used to manage 142K transactions. It can handle smart contracts and a variety of decentralized apps (DApps). The team is also currently in the middle of launching a new token, CORE, and has plans to bring it to major crypto exchanges in the upcoming months.

The Core network's name is inspired by its mission. The creators hope to make a system that can operate at the core of web3. They plan to pick and choose the best parts of other blockchains, such as Ethereum and Bitcoin. Other sources of inspiration include Solana, Polygon and the BNB Chain. In the future, they also say they may choose to model some of their systems after Polkadot or Cosmos.

The system aims to be completely decentralized, so governance is entirely user-led and the Core network is not structured around any single founder or developer to maintain a sense of accessibility. Instead, the entire team maintains a DAO — the Core DAO — with plans to expand membership to other users once they have the system in place.

What Does Core Aim to Achieve?

Core’s primary goal is to solve the blockchain trilemma. This is a commonly-discussed technological challenge. The blockchain trilemma refers to the fact that it is almost impossible to create a secure, scalable and decentralized blockchain. Theoretically, every developer has to sacrifice one of the three features when creating a blockchain. For example, Bitcoin is both secure and decentralized, but it's not extremely scalable.

In an attempt to solve this problem, the Core network operates on the Satoshi Plus consensus. Their unique consensus mechanism allows Core to simultaneously use the mechanisms from multiple different blockchains at once. It achieves decentralization by using the Bitcoin computing power with its PoW model. At the same time, a DPoS system provides scalability and the consensus mechanism of the whole network helps the blockchain maintain optimal security.

How Does Core Work?

The secret to Core’s success is its patented Satoshi Plus consensus. This starts with the efficient PoW algorithm that Bitcoin uses. Each transaction is validated by having miners delegate all of their hash power to a preferred validator. Not only does it create a decentralized network that doesn't rely on any single validator, but it also helps create a secure and reliable ledger.

The other essential mechanism is the DPoS system. Every CORE token holder can delegate their tokens to a validator, so even those with a small number of tokens can vote to validate transactions. This enhances decentralization and makes the system much more scalable.

To combine PoW and DPoS, Core starts with a pool of validators who have both hash power and staked tokens. They then pick a blend of these validators with an algorithm that is designed to select an efficient mix of both mechanisms. The result is a high transaction rate that can maintain optimal security and decentralization.

Features of Core 

The Core blockchain system comes with various components that will be highly useful. Here are the most noteworthy details you need to be aware of.

Satoshi Plus Consensus

As mentioned, Core uses a blend of both PoW and DPoS to validate tokens and transactions. The consensus mechanism means that each block that users add to the blockchain requires both computing power and validation from a current CORE holder. This uses a little less energy and time than standard PoW systems, but the requirement for computing power helps keep various components more secure and ensures no single entity has too much power over the crypto.

EVM-Compatibility

Bitcoin and Ethereum are two of the biggest inspirations behind the Core network, so it's no surprise to hear that Ethereum Virtual Machine (EVM) compatibility was a priority. EVM is one of the most popular environments for managing smart contracts and DApps. By creating an EVM-compatible blockchain, the Core network ensures that its users can carry out exchanges with the main EVM. People can use the Core blockchain for its affordability, speed and flexibility, and then they can run the same functionalities on the EVM to make their DApps more accessible to the public.

DAO Governance

One of Core's key goals is decentralization, so it runs its various components through a DAO. The Core DAO can make proposals, suggest upgrades to the blockchain, vote on suggestions and enact these plans. It has control over everything from transaction fees to governance parameters. Just keep in mind that Core DAO is still in its early stages. Until there are enough users to create a truly decentralized governance, the Core team is overseeing the Core DAO.

Airdrop

Core comes with the capability to airdrop tokens to users. These limited-time events are an extremely efficient way to manage initial token drops. Users do not need any sort of special hardware and they do not need to attend any real-world events. In the upcoming CORE airdrop on Feb 8, 2023, 25.03% of Core’s total token supply will be distributed to the community. The remaining balance will be unlocked over a period of two years. 

Such airdrops distributed by Core will reward early users and give them the ability to participate as validators and DAO members. If you’re interested in more details regarding the airdrop, you can refer to Core’s official Twitter page to stay updated.

Satoshi Mining

Core uses a very secure form of mining called Satoshi Mining. Named after the anonymous founder of Bitcoin, Satoshi Mining involves gathering a large amount of computing power to put toward solving mathematical puzzles. Miners can pool their energy to work together on puzzles, and even simple smartphones can participate through the Satoshi Mining app. This makes it a very accessible form of mining as any Core DAO member can participate in it.

Staking

Another integral feature of Core is token staking. Because the Satoshi Plus consensus involves DPoS, users have the option of temporarily locking their tokens in a smart contract while they validate a new block. Token staking is both a scalable way of mining new blocks and a way of earning passive income. Users who make their tokens available for staking get a financial reward for their contribution. Another great thing about this feature is that it often reduces volatility. Fewer tokens are available for short-term trades, so wild dips in coin prices are less common.

Integration with 0x

0x is an open protocol that allows for decentralized token exchange. Core's integration with 0x provides a lot of benefits. It helps to ensure that people get fair prices while trading, and it reduces potential fees associated with trading. Furthermore, 0x is peer-to-peer, so it's extremely decentralized. This makes CORE trading less vulnerable to security issues.

Inclusive and Censorship-Resistant

One of the big reasons the team has focused so much on decentralization is that the members are concerned about censorship and control. They have designed their system so that it's almost impossible for a few people to take control of the platform. Instead, anyone is allowed to participate, and there are almost no rules about how you can use the platform. This creates a free, open environment for all users.

Core vs. Other Blockchains

Core shares a lot in common with other blockchains, but that doesn't mean it's a direct copy. Since the creators are trying to improve on some frequent issues with other blockchains, they've implemented a lot of very unusual features. Here are some of the ways this blockchain differs from other popular models.

Bitcoin

Bitcoin is one of Core’s leading inspirations, which is why the latter has named its consensus algorithm after Bitcoin founder Satoshi Nakamoto. Like Bitcoin, Core uses PoW mining. However, Core aims to solve Bitcoin's scalability problem. Though Bitcoin is secure and decentralized, the network can only manage around 7 transactions per second (TPS). The DPoS validation that Core introduced will hopefully increase their TPS rate far past Bitcoin. The network hasn't shared its precise TPS yet, but the founders believe it can handle more transactions than Bitcoin can.

Ethereum

Core has a lot of close connections with Ethereum. As an EVM-compatible blockchain, Core uses very similar development tools. Developers who build on Core can easily transport their designs to Ethereum. Like Ethereum, Core uses some PoS concepts. However, instead of the straightforward proof of stake system, Core uses a DPoS system. This is a more democratic process that allows people to participate even if they aren't wealthy holders who have a lot of CORE tokens.

Solana

Solana is an interesting case study because it tries to provide the same outcomes as Core, but it approaches the situation from a different angle. To enhance scalability while maintaining some decentralization, Solana uses proof of history (PoH) and sharding to manage their blockchain. Solana is one of the most scalable chains, but it has a fair amount of security setbacks. There have been several notable chain restarts and block production halts, so some are wary of using this system. In addition to being more secure than Solana, Core is also more affordable. Solana requires users to pay more for scalable performance, so its transaction fees price out a lot of newer developers.

Polygon

Polygon is a popular blockchain for those who want a more scalable version of Ethereum. This Layer 2 blockchain uses proof of stake (PoS) and side chains to increase TPS rates. Like Core, it's popular with developers who prioritize EVM compatibility. The big difference between Core and Polygon is their decentralization. Since its first testnet, Polygon hasn't changed its validator set. This leads to some security risks, and it greatly reduces decentralization. Meanwhile, Core's decentralized model allows for more user input, and the enhanced security means there is less chance of a bad-faith actor manipulating the blockchain.

CORE Crypto Tokenomics

The CORE crypto token will be the native token of the blockchain. The blockchain will have a total supply of 2.1 billion tokens. This is a hard supply cap that will not change over time. Core will also implement a burning model similar to Ethereum’s “Ultra Sound Money” model where a portion of the block rewards and transaction fees are burned.

Since the Core developers want to avoid the centralization that occurs when a few people hold all the tokens on a blockchain, Core’s tokenomics design focuses on distributing tokens as fairly as possible.

The team plans on splitting the tokens up into these six categories:

• Contributors: 15% of the tokens will be reserved for compensating both current and future members of the development team. These will fund the contributors who have spent the past several years building the system without external funding.

• Users: 25.029% of the tokens will be part of the airdrop token distribution event. These tokens will be spread among millions of users to create the initial Core DAO. 

• Node Mining: 39.995% of the tokens will be reserved for node mining. Users can get these tokens by staking their other tokens or contributing their computing power toward the mining process.

• Reserves: 10% of all tokens are held in reserve. In the future, they may be used to capitalize on the foundation or provide other services for the entire network.

• Treasury: 9.5% of tokens will be placed in a treasury for the DAO. This will provide funding for managing the blockchain's ecosystem.

• Relayer Rewards: 0.476% of tokens are set aside to compensate relayers who help maintain enhanced security. The rewards given are in the form of transaction fees.

Where To Buy CORE Crypto

The Core network hopes to release its crypto on bigger markets later in the year. For now, the main way to get these tokens is by signing up to join the community and putting yourself on the airdrop schedule. However, keep in mind that there is already a secondary market developing.

Those who like investing in new crypto have some opportunities to purchase the coin through major crypto exchanges such as Bybit. By buying CORE tokens on Bybit, you can start participating in the Core community as soon as possible. Bybit makes it fast and easy to trade crypto. Simply sign up for a Bybit account, fund it by linking a crypto wallet or credit/debit card to the account and browse the Bybit trading platform. The CORE/USDT Spot Trading pair on Bybit will be available on Feb 8, 2023 at 12PM UTC. Deposit for CORE tokens on Bybit has already opened. 

Is CORE Crypto A Good Investment?

CORE crypto is backed by a very promising project. The Core network team has put a lot of thought into solving the main problems of most crypto, and the founders have potentially come up with a solution to the blockchain trilemma. Furthermore, their focus on DAO governance is prevalent at the moment, so they're attracting a lot of positive attention from DeFi advocates.

The fact that the team's blockchain is so focused on development is also very reassuring. Crypto tokens that have a use beyond simple investment tend to be more stable. Since developers can use the blockchain for DApps, the CORE token has some inherent value. These sorts of blockchains are often less prone to inflation and volatility.

While it's understandable to get excited, it's still a good idea to maintain some caution. This is still an incredibly new company that has yet to open its DAO entirely to the public yet. Crypto markets can be somewhat unpredictable, so there is no guarantee that the company is a foolproof investment. Like any other new crypto, it's a good idea to keep your portfolio diverse and avoid overextending yourself.

Closing Thoughts

Core’s unique Satoshi Plus consensus mechanism combines PoW and DPoS mechanisms into a single, stable blockchain. This has the potential to provide an unprecedented blend of security, decentralization and scalability. With EVM compatibility and 0x integration, this blockchain is especially appealing to developers. As it releases tokens through 2023, there will be some very exciting opportunities for crypto investors.