Network utility


#1

So, my understanding is that this variant of the Ethereum network uses Proof-of-Authority, thus only allowing validated miners in. That means that the number of nodes is governed by the democratic process of validators being voted in to join the network.

In the typical crypto ecosystem, more miners means more competition and thus less profit. On the other hand, compute power of the Ethereum network is a function of the number of nodes on that network. Is this also true with Oracles network?

The key point I’m trying to figure out is: What promotes existing miners to add more miners? They don’t want more competition, but they do want more transactions on the network to create blocks. No usage, no transactions, no blocks, no coins. How do you see this economical balance playing out long-term? Will contention on network’s compute power be the forcing function to bring in additional validators?

Thanks, Michael


#2

Hi Michael,

In the typical crypto ecosystem, more miners means more competition and thus less profit. On the other hand, compute power of the Ethereum network is a function of the number of nodes on that network. Is this also true with Oracles network?

More miners in Oracles network means less profit for each individual validator.
In the main ethereum network compute power of the network is a function of hashrate not numbers of nodes. All nodes execute the same code each block. E.g. 2 nodes or 1000 nodes execute the same amount of instructions each block.

What promotes existing miners to add more miners? They don’t want more competition, but they do want more transactions on the network to create blocks.

We will setup 12 validators for the main network with a hard cap of 50. You will be able to vote to add or remove validators. More validators will make network more secure and increase a price of the token.


#3

Security being proportional to number of validations makes sense. This being an Ethereum network, able to run smart contracts, on which nodes do these contracts execute?

My understanding is that there are two compute powers involved - that of crypto-hashing validations and that of executing the distributed EVM bytecode. Former I’d expect to be more secure the higher the hashrate, latter I’d expect to be more powerful the more nodes.

I assume the price of the token is a function of its desirability on the secondary markets. Security certainly is one factor, and it looks like that factor is presently bound by a hard cap of 50 validators. What are the other factors that might regulate the price of the token?

Thanks, Michael


#4

Hi Michael,

on which nodes do these contracts execute?

Each full node connected to the network runs all smart contracts. Light clients don’t run contracts at all.

What are the other factors that might regulate the price of the token?

When developers start to build on top of Oracles Network, it will affect the price. At the moment, most Ethereum forks are only cryptocurrencies with small internal developer’s communities.

Our plan to growth developers base:

  • build DApps which can be used on different networks, e.g. ICO Wizard or Proof of Identity
  • participate in inter ledgers (Polkadot)
  • facilitate launch of new networks, based on Oracles Network ceremony and governance

#5

I didn’t realize each node fully replicates compute. That’s a significant bottleneck. Fastest node will finish soonest, but since it has to be confirmed, you need lots of very fast nodes to complete the smart contracts, and as the network workload increases, I expect smart contracts execution to become a bottleneck. Any thoughts on how to best address that?


#6

All nodes will execute all transactions while they will sync the chain. You can not sync the chain without running all transaction. Think about it as a required part of the consensus.

There are several ways to speed up blockchain performance and I hope we will meet this lack of performance. :grinning: