What Is Crypto Core (CORE)?

Core is a relatively new web3 blockchain that aims to be inclusive, decentralized, secure and more efficient. This is done by combining proof of work (PoW) and delegated proof of stake (DPoS) mechanisms to achieve the Satoshi Plus consensus.

Core is an innovative network seeking to provide a solution for the much-discussed blockchain trilemma. With its Satoshi Plus consensus, Core is able to simultaneously use different mechanisms from multiple blockchains. Through this unique combination of features, Core can achieve decentralization with Bitcoin’s PoW model, scalability through DPoS and optimal security thanks to its robust consensus mechanism.

The Core network is a community-driven effort with no single founder or developer holding the reins. Instead, an entire team has come together to form a DAO known as the Core DAO. Soon, users will be able to join the growing user base in helping shape Core’s future.

How does Core work?

The Core network is a blockchain meant to maximize security, scalability, and decentralization by employing the use of its consensus mechanism called Satoshi Plus. True to its name, Satoshi Plus leverages the upsides of the PoW framework of the Bitcoin network, *plus* taking advantage of powers granted by the newer, more scalable DPoS model of network consensus. This blockchain is also what we call ‘Turing-complete’, meaning that, given enough time, it can solve any computational problem. In practice, this means developers can build more complex applications. The end result? A better ecosystem. And speaking of ecosystem, the network is also EVM (Ethereum Virtual Machine) compatible so that it can run Ethereum smart contracts and dApps. This helps developers build and port their builds with convenience.

Equally important in all of this is that Core leaves behind the shortcomings of said mechanisms. That is, PoW’s weak scaling makes it very hard for developers to build applications that go beyond Bitcoin’s store-of-value proposition; advanced Web3 applications are what builders deeply want for the space. Satoshi Plus also aims to do away with Proof of Stake (PoS) networks’ (such as Ethereum) tendency to become more centralized. On paper, a PoS framework should allow for more decentralization but in practice, centralized financial custodians (CeFi) tend to contain a high percentage of voting power on any given network.

A quick glance at Etherscan, which is a publicly viewable display of the transactions and wallets on the Ethereum blockchain, shows that 8 out of 10 of the biggest holders of ETH are exchanges like Binance, Kraken, Gemini, etc. Since the network moved to PoS with the merging of its Beacon Chain consensus engine, this means that these entities wield a considerable amount of voting power.

Satoshi Plus

Satoshi Plus is the consensus mechanism by which the Core network is secured, and leverages hash power generated by miners on the Bitcoin blockchain as well as a Decentralized Proof of Stake mechanism. Keeping in mind the concept of the blockchain trilemma, the former helps it achieve decentralization while the latter helps the network achieve a level of scalability that PoW networks might not achieve due to their low transaction throughput. Together, these two consensus mechanisms help secure Core.

This system is unique, so let’s take a closer look at its components in order to break down how exactly it works. First up, the participants that make up this whole thing:

  • Validators: pictured at the bottom of the above visual, ‘validators’ are responsible for producing blocks and validating transactions on Core. Validators must register and lock up a refundable CORE deposit which will be used in the validator set. Of course, in the interest of decentralization, anyone and everyone can participate.
  • Relayers: In the bottom left of the visual, we see our ‘relayers’, which relay BTC ‘block headers’ to the ‘BTC light client’ in the consensus engine. As with validators, relayers must register and lock up CORE in order to participate.
  • BTC Miners: These are the very same miners that secure the Bitcoin network. Miners delegate hash power to a validator. This validator can be run by them or a 3rd party. BTC miners must verify and sync identity to participate.

It should be noted that delegation hash power does not take away from that hash power securing Bitcoin. Rather, it is re-purposed.

  • $CORE holders: Consistent with other DPoS chains, $CORE holders can delegate their holdings to the validators that actively participate in the validation process.
  • Verifiers: Verifiers report malicious actors on the network. The punishment for malicious behavior could be reward or stake slashing or the jailing of validators, which are of course removed from the validator set.

Next up, we have the mechanisms through which our participants act:

  • Validator elections: This is how the top 21 validators are chosen to participate in the validator set. A validator is ‘elected’ according to their hybrid score each round. Live validators are updated every 200 blocks for a more stable TPS (transactions per second). TPS describes a network’s throughput.
  • Hybrid score: Core has a protocol function that determines validators based on their resulting score. It derives its score from BTC hash power and the amount of CORE delegated to the validator (this will be expanded on later).
  • Round: This is the cycle time, set to 1 day, in which Core updates the validator quorum and distributes rewards. At the end of each day, the top 21 validators are elected to the validator set, and therefore bear the responsibility of producing blocks for 1 round. At the end of each round, all the rewards that are accumulated are distributed. Validator quorum is also determined at the end of each round.
  • Slot: Slots are 3-second divisions of each round, and are the time in which a validator produces a block (or fails to produce). With this time division, validators produce blocks in a round robin style, meaning each of them has a chance to produce a block.
  • Epoch: The cycle length that the system has to check validator status. This allows the system to exclude jailed validators from quorum and keep TPS consistent and stable. One epoch= 200 slots, or 10 minutes.

What Is the CORE token?

$CORE, the native token of the Core network, is what helps secure it.

The token has a hard cap of 2.1 billion tokens, meaning it functions on the scarcity principle of value. Going further, a certain percentage of rewards and transaction fees, to be determined by the Core DAO, will be burned. In order to ensure the longevity of the network’s reward mechanism, participants will have their rewards paid out over a period of 81 years.

The reward distribution is tabulated at the end of each round, 90% of the total rewards going to validators, and the remaining 10% going to something called the System Reward Contract, under which verifiers and relayers are paid.

The future of Core

So, what’s on the horizon for Core? Like many other networks, the Core DAO realizes that the future of Web3 is cross-chain. There are various ways to achieve this, an L0 relay or hub chain model being two avenues that are cited in Core’s documentation.

Core is also focused on scalability which may see the network leveraging Ethereum scaling solutions such as rollups. This plan of growth also includes fostering the adoption of the chain by other projects and DAOs.

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