Blockchain

Introduction

Blockchain is a decentralized system for storing and transmitting information, where data is encrypted, grouped into blocks, and stored on multiple users’ computers across the network.

In 2008, Satoshi Nakamoto introduced the concept of blockchain and proposed the Bitcoin algorithm, the first system that allowed users to send and receive digital money without intermediaries. This led to the creation of the first cryptocurrency - Bitcoin.

Blockchain is a sequential chain of blocks. Each block consists of a header and a list of transactions. A hash - an encrypted set of unique characters containing transaction data - is used to link blocks and ensure data integrity. Each block contains its own hash and the hash of the previous block, making any data modification immediately detectable and disrupting the entire chain.

To interact with blockchain, cryptocurrency wallets are used. When you register, we automatically generate a wallet for you, securely encrypting your private key.

Gnosis Chain

Our project is a decentralized application based on smart contracts executed within the Gnosis Chain blockchain.

Gnosis Chain is a fully decentralized blockchain built on Ethereum, offering higher speed and minimal transaction costs.

The blockchain is secured by more than 300,000 validators worldwide. The transaction cost on Gnosis is typically less than $0.001, making it a significant advantage.

Additionally, Gnosis Chain uses a reliable and fully decentralized stablecoin, xDAI, which is pegged 1:1 to the DAI token on Ethereum and maintains a stable value of $1.

Consensus

A consensus algorithm is a mechanism that allows blockchain participants to agree on all changes within the network.

Proof-of-Work (PoW) - the first consensus algorithm used in Bitcoin. In PoW, miners compete for the right to add the next block by solving complex computational puzzles. However, high energy consumption and environmental impact led to the development of alternative algorithms.
Proof-of-Stake (PoS) - based on staking. The system selects validators for creating new blocks and confirming transactions from users who lock up their cryptocurrency. The selection is influenced by the amount of cryptocurrency held. Validators earn rewards in the form of transaction fees.

Gnosis Chain operates on Delegated Proof-of-Stake (DPoS), an improved PoS algorithm that enhances network efficiency.