Core DAO, a decentralized autonomous organization, is aiming to address the blockchain trilemma – the trade-offs between security, scalability, and decentralization in the creation of layer-1 blockchain solutions. Typically, networks can only optimize for two of these three elements at any given time. For instance, Ethereum prioritizes security and decentralization but struggles with scalability, resulting in higher gas prices and slower transaction speeds as more users join the network.
In contrast, Core DAO utilizes its Satoshi Plus Consensus, a mechanism that bridges proof-of-work (PoW) and delegated proof-of-stake (DPoS), according to Rich Rines, an initial contributor at Core DAO. Relayers, who run on-chain light clients for Bitcoin, transmit Bitcoin block headers to a Bitcoin light client. Miners securing the Bitcoin network can opt to have their hash power the Satoshi Plus consensus by delegating their hash to a validator run by themselves or a third party.
This delegation process repurposes miners’ work without requiring them to choose between securing two different networks. As a result, the network can maintain decentralization through Bitcoin’s computing power and scalability through DPoS. Rines emphasizes that Core DAO’s solution retains and even increases Bitcoin’s security without additional energy expenditure, while still achieving all three aspects of the blockchain trilemma in a layer-1 solution.
In addition to developing the Satoshi Plus Consensus, Core DAO has recently launched a $200 million ecosystem fund. This fund aims to grow projects in the ecosystem, support marketing efforts, and fund research and recruiting programs. Rines notes that unlike other projects, Core DAO prioritizes the user experience and constantly seeks ways to enhance it, creating a different approach to blockchain development.
While the blockchain trilemma remains a prominent challenge in the development and implementation of decentralized networks, Core DAO’s unique approach might prove to be a successful solution by leveraging Bitcoin’s decentralization and delegated proof-of-stake. This strategy could potentially reshape the way blockchain networks are built and optimized in the future, offering greater accessibility for more users without compromising on security or scalability.
Source: Blockworks
