Month: August 2018

Posted on

Nexus

What is Nexus?

Nexus is a decentralized computer network created in 2014 to help improve security, scalability, and blockchain protocols accessibility. The Nexus idea is derived from the term Nexus which implies connecting two or more things. Nexus also has its own native coin referred to as Nexus (NXS). The founder of Nexus is Colin Cantrell, the son of Jim Cantrell of Space X fame.

Unlike other cryptocurrencies such as Bitcoin and Ethereum that have fixed coin supply, Nexus is different. There is no cap on the total NXS to be minted. Instead, Nexus is following a ten-year distribution plan where 78 million NXS will be distributed.

The ten year period ends on 23rd September 2024. Once this time lapses, the NXS supply will inflate annually by a maximum of 3% via the holding channel and additional 1% via the hashing and prime channels.

What is the problem that Nexus Solves?

The society is fast gravitating towards decentralized types of governance. This type of operation was demonstrated to be possible by the first blockchains network, Bitcoin by Satoshi Nakamoto. While the idea is noble and has been demonstrated to solve many issues that had refused to go away such as big data, it has been held hostage by serious bottlenecks. Here are some of the main issues that most blockchain networks face and that Nexus was designed to address.

  • Scalability: As more people come to the blockchain systems to reap associated benefits, most of the networks are easily getting overwhelmed. This has resulted in massive inefficiencies and even rising cost of transactions. At Bitcoin, the system can only handle one block every ten minutes which translates to about 60 transactions per second. Even the second highest placed blockchain network, Ethereum, can only handle about 15 transactions per second. These figures are dwarfed so much by financial transaction leaders such as Visa that can handle up to 45,000 transactions per second.
  • Security: Every person joining the blockchain industry rarely feels completely secure. Some blockchains such as Ethereum and Bitcoin Gold have been victims of attacks and huge losses as hackers up their games. Other security issues include sole reliance on a public ledger, the risk of 51% attacks especially for those using POW (Proof of Work) consensus, and politics of execution.
  • Protocols accessibility: Even as blockchain technology gains speed, accessibility, especially for people away from major cities, is a big issue. The poor accessibility now acts as a serious bottleneck threatening adoption, application, and success of blockchain technology.

How does Nexus Solve the problem?

To address the outlined problems and help with faster adoption of blockchain network, Nexus uses quantum resistant 3D blockchain with space satellites.

When this is combined with the native Nexus coin (NXS), the Nexus founder, Colin Cantrell and his development team, want to decentralize the decentralization (taking decentralization completely free from mining pool monopolies and governments).

  1. Three-dimensional chains

Nexus employs not one or two, but three consensus mechanism to create and drive its unique three-dimensional blockchain. This system helps reduce the issue of mining centralization and promote on-chain scaling.

  • The prime channel: This is a proof-of-work channel where miners are required to search for 308-digit Dense Prime Clusters. This form of mining is more ASIC resistant compared to traditional hashing models. It implies that even those with strong CPUs can still mine Nexus.
  • The hashing channel: This is another proof-of-work channel that utilizes Hashcash as opposed to Dense Prime Clusters. It closely resembles the mining used in Bitcoin but differs slightly because miners look for Nsha-3 (with Skein) while those in Bitcoin look for SHA-256. The Nexus block hashes are better because it is 4 times the block hashes of Bitcoin. Users can use GPU to mine this channel.
  • Proof-of-Holding: This protocol is used as a method of securing the network. It is the same as proof-of-stake such as the one used at NEO. What this implies is that you earn some Nexus coins by simply holding a stake in the network. What will determine the amount of the reward for staking Nexus include interest rate, block weight, trust weight, and stake weight.

To further decentralize the operations, Nexus uses a three-pronged distributed telecommunication system.

  • The Mesh Networks: Since Nexus utilizes 3 different mining systems, it implies that almost any person in the globe can indeed run a node and help in securing the network. The nodes in the entire network work together to help solve every block as opposed to competing. Nexus is also working on producing antennas that can help nodes run locally based networks.
  • Cube satellites: Nexus partnered with Vector Space Systems to design LEO (Low Earth Orbit) satellite network of nodes. These, together with the ground mesh network will host the mesh network and the decentralized applications (DApps).
  • The Ground Stations: These stations connect with the Nexus mesh networks and run the downlink/uplink operations. These are things such as address endpoint route defining and caching. The ground stations also operate own instances of Daemon.

What makes Nexus better than it’s competitors?

Nexus is one of the most ambitious blockchain projects in the market today. Its design and operations have set it far apart from peers. Most technologies such as the use of side-chains and decentralized applications that are considered latest additions by other networks had already been figured out by Nexus team back in 2014. Here are other things that make it better than competitors.

  • The growth of Nexus has defied myriads of factors in the industry to deliver huge ROI (return on investment) to investors. For example, a person who invested in Nexus June 2015 when the price was $0.001 enjoyed a mammoth growth of more than 249,000% early June 2018. Most of the other cryptocurrencies reported negative growth or very limited ROI during the same period.
  • Unlike other cryptocurrencies such as Bitcoin, Ethereum, and Bitcoin Cash among others that have a fixed quantity of tokens, Nexus will continue releasing new coins even after the initial 78 million NXS enter the circulation. This will help the network to cater for losses from people who lose their tokens and others who drop off without returning the coins to the network.
  • The platform has a clear system of reaching every user across the globe. By employing various mining models, and the Nexus hardware, it implies that more people including those with standard CPUs can now mine the network and participate in its governance.
  • The Nexus transaction requires a total of 6 confirmations. This sets it apart from most blockchain networks that only require one confirmation before funds or other transactions are completed on the network.
  • Though the Nexus platform charges a fee, they have indicated that sending value on the network will be free once the initial ten years after launch are completed. This will make it even easier for users to send funds across the globe.

How can Nexus be categorized?

Nexus can be categorized as a truly decentralized network that will define the next generation blockchain application. While the value of NXS has not grown fast enough to rival Bitcoin or even Ethereum, the underlying technology tells a different story. But it is its focus on decentralization that has made more people keep trooping to there. Here are the main things that make Nexus the most decentralized network in the market.

  • The three channels chain model makes it easy for anyone with interest in blockchain to join and participate in consensus building.
  • By including the proof-of-holding protocol, it implies that even those who do not want to get involved in complex computational mathematics can still get rewarded by simply holding some stake.
  • The design of Nexus makes it a perfect model for empowering the nodes. For example, the ground stations allow nodes on the network to even run their own instances of Daemon.

Nexus’s vision on Security?

One of the primary concerns for the Nexus team was how to guarantee optimal security for users in the network. Being launched at a time when huge losses via attacks on Mt.Gox and Silk Scandal among others were shaking the blockchain network, a reliable solution had to be sought. The Nexus adopted the following methods of securing the network.

(i)    Use of larger keys to address the risk of brute force attacks

One thing that Nexus team appreciated when working on the platform was that most algorithms in the blockchain network can be violated by brute force attacks. In most of the networks, the minimum recommended key length is 224 bits for the Standard Elliptic Curve algorithm. For example, Bitcoin uses 256 key length which is longer than the 224 bits requirement. Now, Nexus has opted for different elliptic curve parameters as well as varied hashing algorithms. Longer keys that are twice as the recommended length imply that a quantum computer will require four times longer to find. Here is the comparison of a Bitcoin and Nexus private keys.

  • Bitcoin private keys:

5Kb8kLf9zgWQnogidDA76MzPL6TsZZY36hWXMssSzNydYXYB9KF

  • Nexus private keys: 6Wuiv513R18o5cRpwNSCfT7xs9tniHHN5Lb3AMs58vkVxsQdL4atHTFVt5TNT9himnCMmnbjbCPxgxhSTDE5iAzCZ3LhJFm7L9rCFroYoqz

(ii)  Protection from side channel attacks

As indicated earlier, Bitcoin utilizes the 256-bit Secp256k1 elliptic curve domain parameters. These are outlined in the Standards for Efficient Cryptography. What this implies is that the Bitcoin Private keys can be generated following the same classical computer in less than 200 signatures (ECC already leaks private keys classically with side channel).

In addition to adopting set571r1 (571 bits), Nexus has opted to implement keys with different curves. They have also committed to adding support for multiple curves in order to provide users with the opportunity to adopt multisig with many curves.

(iii) Protection from 51% attack

In networks that employ the proof-of-work (PoW) consensus algorithm such as Bitcoin, the threat of mining domination by a few individuals has become a serious security threat. Because only a few people can afford the expensive ASIC mining equipment, the danger of most tokens (51%) falling in the hands of a few entities/ mining pools is very high.

To prevent such a problem from occurring in Nexus, the founders and the development team employs three methods of generating a valid Nexus block and minting NXS. Nodes can opt for the proof-of-work channels that allow miners to look for the Dense Prime Clusters of 308 digits. The other channel, proof-of-holding requires users to have some stake in the network. The multiple channels help to guarantee even distribution of NXS to reduce the threat of 51%.

(iv) Nexus puts a lot of weight on trust

Nexus places a lot of weight on building trust. The network is based on the premise that people who can be trusted can help to protect the network. To be a trusted node, you are required to do two things; hold a significant stake in the network and be active in producing new blocks. The network attaches a key to this trust. The development team believes that the strength of the Nexus ecosystem, as well as its reliability, can grow progressively by promoting truthfulness.

Examples of Nexus’s use cases/applications.

  • You can use NXS tokens to pay for transaction fee on the native Nexus platform. You can also use the tokens to pay for transaction costs in different exchanges when trading in the markets.
  • If you want to make direct purchases with NXS, simply check for stores that accept the tokens. Once you have placed all the items on the cart, pay with Nexus. If the store only accepts other coins such as Bitcoin, you will be required to convert NXS to that coin.
  • Sending value across the network both locally and internationally. This is one of the main goals for people coming to Nexus and other cryptocurrencies. As a decentralized network, it implies that you can send NXS directly without involving third parties such as banks and credit card companies.
  • Nexus is a great investment platform. You can buy the tokens and hold them waiting for the price to appreciate. For example, those people who bought NXS in June 2015 enjoyed a mammoth growth of more than 249,000% by June 2018. You can also invest in the token today and hold them waiting for the price to grow in future.
  • Trading the tokens in the cryptocurrency markets. Like other cryptocurrencies or even fiat currencies, Nexus tokens can also be traded in the markets. This is a very profitable option that allows users to optimize on regular price changes to get more profit.

 

Posted on

Basic Attention Token

 WHAT IS BASIC ATTENTION TOKEN?

Basic Attention Token (BAT) is a token created to solve the numerous problems facing digital marketing. It is a product built on the Ethereum Blockchain Technology as well as an ERC-token and the aim of the platform is to decentralize the digital advertising marketplace, thus leaving users, publishers and advertisers to dominate by eliminating whatsoever form of a third party like the trackers, middlemen and frauds, that create a problem for the current market place.

The Basic Attention Token makes use of the Brave Browser to achieve its goal because it is built to withstand trackers and malvertisements and also to record user’s attention through its ledger system.

Aside from solving the problems associated with digital marketing, the Basic Attention Token is also used as a means of exchange i.e. a currency. This token is exchanged on the platform between the participants which would include advertisers, users and publishers. It would be used for the purchase of attention-based advertising services on the Brave Browser. The usefulness of the token is solely dependent on the attention derived from the users of the platform.

The attention of the user is monitored by the browser based on the ads and content viewed by a particular user. This way, publishers, users and advertisers are rewarded with the right amount of token they all deserve. All of these are achieved through the use of the smart contract

WHAT IS THE PROBLEM THAT BASIC ATTENTION TOKEN SOLVES?

There are numerous challenges facing the digital marketplace and it has affected all the participant in the marketplace. The major problem is the presence of so many intermediaries between the advert and the user. These intermediaries include training desks, agencies, mobile and desktop network exchanges, demand side platforms, rich media vendors, yield optimization. All of these intermediaries lead to the high price of advertising budget.

Every participant (user, publisher and advertiser) usually bear the brunt of the fees one way and another. For instance, publishers get to pay a lot for advert servicing, fees for the campaign, monitoring and deployment. Users on the other end suffer from the various unnecessary ad which eats deep into their data plan and battery.

More so, users suffer a lot from privacy violation as a lot of their personal information is being used against them. The advertisement marketplace also suffers from fraudulent practices as hackers are able to deceive advertisers and users with malevolent bots used for the generation of fake traffic. It’s a two-way thing as advertisers suffer from fraud, users from malvertisements.

In the long run, publisher’s revenue falls as Facebook and Google more of the money and enjoy the growth process, most users employ the use of ad blockers to prevent incessant and necessary ads.

Also, publishers have been unable to make money from other value services. For users, they are continuously violated and robbed of their privacy, battery and data while advertisers are unable to be effective in what they do as they lack the right info on what they pay for and they also suffer from poor targeting giving users a greater chance of ignoring adverts.

 

HOW DOES BASIC ATTENTION TOKEN SOLVE THE PROBLEM?

All of the problems encountered in the advert marketplace is due to the fact that it operates on a centralized platform. The BAT platform aims to ameliorate these challenges by providing a decentralized advert exchange that would eliminate the presence of the numerous intermediaries in the market place thus leaving just the user, advertiser and publisher to interact and make use of the best opportunities that avail them. This is achieved through the use of an attention token built on the blockchain technology and the brave browser.

The brave browser is an open-source, fast and privacy-based browser that prevents trackers and ads that are invasive. This browser comes with a ledger that gauges the attention of users so as to recompense publishers adequately and accurately. Afterwards, the Basic Attention Token, a decentralized token for advert exchange comes into play. This token employs the use of the smart contract, a feature on the Ethereum blockchain technology to automatically carry out operations.

The user attention is gotten from the token through the engagement of the user with an advertisement. Through the browser, contents that are relevant to the viewer determines the ad that would be shown to the user. Also, external interference is impossible since its through a secured platform. Since the ads shown is what is relevant to the user, there is a 90% chance for a successful transaction. This way, users’ privacy is respected and they earn for viewing adds based on the metrics employed.

Same way, publishers would be given some token as rewards also based on the attention of a user. The more tailored an ad is, the higher the increase in revenue. Although, advertisers would not get any token, they are the mainstay of the platform. They are responsible for the provision of content that would determine the success and profit of the network.

As regards fraud, it is virtually impossible to hack into the system to create malicious bots due to the dual presence of the blockchain and brave browser.

WHAT MAKES BAT BETTER THAN ITS COMPETITORS?

There are numerous platforms around the world that stand as competitors to what the Basic Attention Token offers. One of such competitor is Reddit Gold which is a product of reddit. This product is limited to the platform and all it does is to grant its member access to features on the platform. There is no incentive for the publisher and user like is seen in the BAT platform where users are given free tokens for viewing ads.

Another edge which the BAT platform has over its competitors is the fact that they operate on the blockchain technology. Through the use of the blockchain, security through decentralization is guaranteed. There is no possibility for a hack or third-party interference. More so, through the use of the smart contract, the transaction is done speedily and effortlessly. It also ensures that the user’s data is kept away from external parties, placing priority on its user.

Also, the BAT platform does not restrict its user to a particular site or function. It gives its users liberality to interfere with whatever they want to, unlike Blendle which limits its function to stories alone. Much more than the benefits accrued to the platform, BAT places more emphasis on the user.

HOW CAN BASIC ATTENTION TOKEN BE CATEGORIZED?

  • Rewarding

The platform rewards both the publishers, the user and the advertiser. The publisher and user get BAT tokens for providing ads and viewing ads respectively while advertisers enjoy higher conversion. This serves as an incentive to want to participate more in the activities of the platform in question. This gives room for a coordinated operational model and would increase the effectiveness of digital marketing.  More than solving the problems that the digital marketplace suffers from, it also provides a steady means to uphold their system. The way rewards are distributed are systematic and based on some laid down criteria and calculations. Tokens generated on BAT platform are available to be exchanged among the participating individuals who include the publisher, advertisers and users of the advertising system.

  • Advertising

The major goal of the Basic Attention Token is to provide a more effective and focus-oriented advertising marketplace. Advertisement before has been once sided and had derived the major participants their joy. Users have been deprived of their privacy, a larger chunk of their data life suffers and there is a reduction in battery life. This leaves them with no option but to install ad blockers. This way, the advertisement is not effectively done.

Publishers therefore do not get high returns of their revenue as they get to pay a lot to the middlemen to get ads up and running while advertisers are usually unable to achieve effectiveness and are also victim to fraud. Basic Attention Token increases the efficacy of digital advertising as a result of its token development that encourages security to all parties involved as well as increases the attention of the user to the ads. High and increased revenue also ensures that advertising is well done on BAT platform.

  • Currency

The Basic Attention Token apart from being a tool for solving major problems in the digital market, it is also a means through which service and online features can be purchased. Only through the token can one become a beneficiary of the platform. The reward gotten from participation can be used to buy digital products like pictures, data, applications, games and its features, etc.

 

WHAT IS BAT’S VISION ON SECURITY?

A major and highly remarkable challenge facing digital advertisement has been that of security. The influence of middlemen and even hackers has created a huge nuisance to users, the publishers of adverts as well as the advertisers. This is why Basic Attention Token is the answer and solution to all of the challenges mentioned. It operates on a system that offers resistance to attacks poised at its platform. It has incorporated Brave, a browser that portends high immunity against pseudo adverts that could be intended to invade its platform. This high security system has been able to raise the effectiveness of advertisement on BAT blockchain. Tracking by external parties is available on BAT platform, as well as an in-built mechanism that points out the truly safe ads rather than the malicious ones.

The blockchain technology provides decentralization which reduces or totally eliminate the presence of middle men. In the centralized system where middle men were, there was a lot of hack possibility and this led to loss of huge amount of money to the hackers as they created fake bots that deceive users, generating fake traffic. This way, advertisers lose revenue to them. Using BAT eliminates the possibility of such reign, placing more focus on just the user, publisher and advertiser with other party included. Every operation is done automatically through the smart contract.

EXAMPLES OF BAT’S USE CASES/APPLICATIONS

The Basic Attention Token serve a lot of purpose of which the chief is Advertising. Now, through the use of BAT, advertising can be more specific and targeted towards a particular demography. This allows small scale businesses to participate effectively in the digital market place, as they can run their ads towards specific users at a low cost.

Some other times, publishers sometimes have content that they reserve for their subscribers alone. The BAT token could be a medium through which publishers can share these contents since users ordinarily do not really participate in having to subscribe. The content could be bought and sold for friends e.g. if the reserved content could be beneficial to known friends, the token could be used to purchase it for these friends.

BAT could be used for voting or commenting. This is a more secured and trustworthy means to determine the validity and reliability of such vote and comment. This way, one can determine actually users of the site. It also provides proof that whosoever voter or commented is real and not just some random thing like robots. The Publisher can use the platform to reduce the high rate of negative comments and cyber bullying.

Furthermore, BAT can be employed to buy goods and services on the Brave browser. Some of these goods could be pictures, data, applications etc. Normally, publishers make them available to the users through subscriptions. However, this model as not been truly effective since a lot of users find these subscription plans as very expensive. With the BAT token in utilization, users can get these features by paying a certain amount of token to the publisher.

Another possible use cases of the Bat token are its use in game platforms as provided by publishers. Although, this is not so common, there are a lot of possibilities that the token might influence its popularity. Game features, tools etc. can be purchased using the token which would give room for better enjoyment. Also, news platform could provide users with news regarding latest events for a specific amount of token.