Nuls is a project aiming at revolutionizing the business and enterprise arena through the employment of blockchain technology. But among 2000+ other crypto-related projects listed on CoinMarketCap, how is Nuls any different? Well, one thing is its consensus algorithm.
Unlike most of the projects that employ the proof-of-work (PoW) or proof-of-stake (PoS) algorithm, Nuls employs a modified version of the PoS, the proof-of-credit (PoC). Now in order to get know more about this algorithm, BlockPublisher got in touch with a community developer at Nuls, Josh Welham.
Talking about PoC, Josh stated:
NULS developed PoC which is very similar to that of PoS. The difference for operating nodes being that PoC will punish bad network maintainers (node operators), the punishment will be a lower reward output for the node operator and members staking on that node. Since node operators who cannot maintain a healthy node for the network get punished with a lower reward output then people will not stake on that node, causing bad nodes be removed from the network consensus. This method means all the nodes in the network must strive to be healthy and maintain a fast and robust network.
One thing that sets PoC apart is its feature of removing malfunctioning or ‘bad’ nodes from the network. As stated by Josh, a healthy, fast and robust ecosystem is maintained as a result of this framework. Lower rewards on malfunctioning nodes automatically revert people from staking on that node. Only the optimal and healthy nodes stay in the network as a result of this. Josh further added:
Most importantly about the PoC mechanism is that since NULS is designed to be modular from the ground up, PoC is what ties all the customisable modules and rules for side-chains together; Allowing everything to interact with one another.
PoC also helps Nuls maintains its modular structure. Unlike the top-notch blockchain platforms that only allow the users to solve a specific set of problems, Nuls’ modular form makes it possible for the users to focus on a variety of different problems. As a result of this, a wide range of problems can be solved incentivizing the business and enterprise giants to enter the blockchain space.
Also regarding the scalability handling on the Nuls platform, Josh stated:
NULS is resolving the scalability problem by using parallel multi-chains. What this means is NULS separates sub-chains into their own blockchain environment where they record their own business data. Each sub-chain can run parallel chains to help with recording data. A sub-chain could have 80 parallel chains allowing them to handle x80 transactions per second then their initial rate.
Scalability is one of the major reasons why blockchain technology has not been adopted widely. While different solutions are emerging out every day, Nuls aims to solve this through the employment of multiple chains. Instead of one chain bearing all the brunt of the incoming transactions, transactions are divided into separate chains, and as a result of this, scalability improves by a huge amount.
In a nutshell, the PoC consensus algorithm and scalability management through its side-chains makes Nuls one project to look out for in the long run. It remains to be seen how it tackles with trials of time from here on.