The Applicature team never stops surprising its admirers by holding new events. The most recent to draw the attention of visitors was meetup #4: Consensus and Blockchain Economics.
“Consensus and Blockchain Economics” was held on July 18, 2018 at BC Gulliver in Kyiv, Ukraine.
This event gathered business analysts, IT consultants, entrepreneurs/business owners, startup founders, and blockchain enthusiasts to introduce consensus and blockchain economics.
Stanislav Sheliakin, Head of Blockchain Consulting at Applicature, has strong experience in the efficient running of blockchain-based projects, which he acquired working as a DLT business architect: BC S&D at ClinTex Ltd, and BC S&D at ReMoneta. During his speech, consensus and token economics issues were covered.
“To create solid and efficient solution empowered by blockchain, it is crucial to understand how to match business needs with robust technology in private and public chains. A lot of answers are hidden in the consensus of each blockchain, so it is important to know all the pros and cons. But for the public blockchain solution, it is just a part of the answer, as you need a public token. Business models will hardly rely on token economics within the public network, so it is better to know how to design it to avoid the “dead coins” problem,” Stanislav shared in his insights.
Types of Consensus
First, guests had the chance to learn about consensus, its usage in decentralized systems, and the utilization of its main types. Everyone was provided with the chance to get useful theoretical knowledge about the following terms, which undoubtedly have helpful practical meaning in businesses running in any field:
Enterprise-level consensus types:
- Proof of Authority
- practical Byzantine Fault Tolerance
- reputational Proof of Stake
- delegated Byzantine Fault Tolerance
Public blockchain consensus types:
- delegated Proof-of-Stake
- Proof of Stake
- Proof of Work
Distributed non-blockchain consensus types:
- graph-based systems
- federated Byzantine Agreement
Sheliakin taught attendees how to use consensus correctly — not just to start a business, but to run it successfully over the long term. He also provided information on how to choose the correct configuration of consensus solutions.
The next topic Stanislav presented was token economics, which is one of the most popular aspects of any project structure. Token economics is the study of tokenized ecosystems and the different economic models they present.
He described the major theoretical concept behind cryptocurrencies and key takeaways from the Vernon Smith experiment. Also, Stanislav presented two approaches to token economics: micro- and macro-economics, and explained the difference between them. At the end of his speech, he gave some helpful advice about how to design micro-token economics.
Token economics is difficult enough, so there is the potential for a high number of mistakes during its development.
“Many companies are trying to run a successful cryptocurrency and create a value token, but they do not understand the meaning of each term and its unique features, and accordingly, they can not find the right approach to their implementation. There are some projects which, despite their promise, have been closed because of dead coins,” explained Stanislav.
Therefore, it was essential to talk about the basics of cryptocurrency and tokens, how to build them, and what to do to present them in a serious manner.
Case of Consensus on the Example of EmerCoin Group
Kostiantyn Bigus, the representer of the at Emercoin Group – a public blockchain-based project that is specialized in scaling tech adoption, marketing, community and investors relations, acted as panel moderator at the event. He gave the insights on the working concept of Emercoin Group, Emercoin technology stack and SDKs.
The main ideas are as follows:
– what is Emercoin and how works its public net
– Emercoin ecosystem of SDKs and abilities for integration
– cases of enterprise applications of Emercoin
He also shared the unlimited applications of multiple blockchain services and presented the benefits that any related project can benefit from the blockchain technology.
Moreover, everyone can watch the video from the meeting.
Remember to check the Facebook account to be always aware of upcoming meetings, conferences, and events.
Hope to see all of you soon!