HBIT is a blockchain that is a 100% proof-of-stake cryptocurrency built in open-source Java. HBIT already has a unique proof-of-stake algorithm that is resistant to so-called nothing-at-stake attacks and does not rely on any implementation of the coin age notion used by other proof-of-stake cryptocurrencies. The genesis block distributed a total of 50 billion usable coins.
Smart contracts are lines of code that run automatically when a certain condition is satisfied. They are known as decentralized applications in the crypto community and are most popular on the Ethereum network. At this stage, it is critical to ask whether HBC20 is good enough to be used globally.
HBIT designed HBC20 with three main ideas in mind that inspired the blockchain’s architecture and development. They are as follows:– HBIT required the HBC20 to be a stand-alone blockchain from the HBIT Chain. The decoupling of the two blockchains insured that there would be no service outages if one of them failed. Separating the two networks also allowed HBIT to adopt new technologies that were either not previously used or had negative side effects.
Maintaining high transaction speed, decentralization, and security at the same time has been a major difficulty for blockchain inventors, dubbed the “blockchain trilemma” by Ethereum co-founder Vitalik Buterin. Scalability is essential for a blockchain network’s effectiveness as well as its overall best user experience. As a result, HBC20 prefers to create various technologies to boost network throughput and, as a result, prioritize scalability over decentralization and security.
Another incident, this time using the EOSIO network, demonstrates the pitfalls of the blockchain trilemma. On suspicion of suspected theft, EOS froze seven accounts. This action, however, was met with harsh criticism because it was undertaken by only 21 elected block producers, bringing into question the network’s decentralization. While transaction speed is vital, so is security and decentralization. After all, they constitute the foundation for the initial development of blockchain technology.