The Rise of Layer 2: A New Opportunity for Public Chains
The Layer 2 race has attracted droves of new projects as it gathers momentum. Although the new consensus is coming on strong, the competition among public chains essentially revolves around technology and projects. It is noteworthy that as the CSC Global Hackathon Grants goes into full swing, this remarkable contest will surely bring many outstanding projects to CSC.
In the future, the trend of development in blockchain finance is to facilitate the adoption of blockchain technology in traditional finance. In the current stage where the blockchain sector is still growing at a moderate pace, the importance of the underlying technologies has been underplayed. However, once the industry grows rapidly, the available public chain technologies will be essential.
The competition of core consensus
What is the difference between CSC, a smart contract platform, and other public chains?
To determine the core competitiveness of a public chain, besides its underlying technology, ecosystem, and statistics, the following indicators must also be considered: 1) The core consensus mechanism; 2) The threshold and number of nodes; 3) The processing speed, fees, and the means of governance; 4) Token; 5) Flexibility and scalability of the platform; 6) Security and stability of assets.
First of all, in terms of the core consensus mechanism, CSC adopted the unique CPoS consensus.
CSC’s new consensus mechanism has opened up a new path for blockchain ecosystems. More specifically, CSC has adopted PoS as the underlying consensus mechanism and PoA as the block generation mechanism. Simply put, CSC has created a new model where users can run for validators simply by staking CET.
Regarding the threshold of nodes, CSC has placed a cap on the total number of validators, that is, only the top 101 nodes by staking amount can become validators to mine blocks and enjoy rewards. In addition, CSC sets a minimum staking amount of 10,000 CET for each validator, which means that a validator will be disqualified if its staking amount is less than required.
Under this model, CSC not only achieves decentralization but also generates blocks within 3 seconds. Plus, the transaction fee is extremely low (less than 0.01 USDT at the moment).
Empower CET to capture more values
CSC’s unique consensus mechanism made it necessary to elect validators by staking. In this process, as the token used for staking, CET plays the role of preinstalled token on CSC and acts as the gas. With staking, validators can encourage users to participate in staking through incentives and rewards, thereby promoting the development of the entire ecosystem.
The CSC ecosystem has also created more scenarios in which CET can be applied. To be more specific, on CSC, CET is not only the gas fee for on-chain transactions and contract interactions but also the service fee for the deployment of smart contracts. As CSC’s native token, CET carries significant business value and circulating rights. As such, the token has brilliant commercial prospects.
In the future, CSC’s ecosystem will become increasingly sound. As the public chain attracts more projects like DeFi applications, the CSC community will grow into a DAO (decentralized autonomous organization). By then, CET, as the native token, will play an important role in community governance, voting, decision-making, etc.
An open project support fund
A city needs both good companies as well as residents to flourish. By the same token, to build an ecosystem, three core elements are often required, i.e. projects, users, and financial support.
To build CSC, a new blockchain city with open deployment, the CSC team should bring together the existing users, resources, and developers in the market as soon as possible. CSC’s $10 million support fund and the CSC Global Hackathon Grants go hand in hand. Both of them focus on cultivating projects in popular sectors (such as DeFi, NFT, insurance, and oracles) and aim to foster the CSC ecosystem through coordinated development in multiple fields. In addition to the $10 million support fund, CSC has also set up a support fund for the metaverse, which is the most popular blockchain sector at the moment. Through the metaverse fund, outstanding projects that demonstrate great prospects in the early stage can receive lump-sum funding of $200,000. Furthermore, participating developers of the CSC Global Hackathon Grants may even share the prize pool of up to $300,000 and receive the corresponding resources, such as market promotion, technical support, etc.
In 2021, major public chains have moved faster to optimize their ecosystem model. While striving to increase the ecosystem value, public chains should fully motivate all participants through more reasonable principles of distribution to promote the sustained and sound growth of their ecosystem. For instance, economic incentives should be provided for project teams and ecosystem contributors. CSC commits itself to capturing first-class projects through its technologies and incentives, in an attempt to gain the upper hand in the future competition against its peers and secure a foothold in the public chain race.