Rise of the Machines: control through the blockchain (DASH)
Since people began to interact with each other, governments have appeared. Whether it is local tribes, in which leaders emerged to interact with other tribes and to make internal decisions, or huge state formations, such as the USSR and the USA ... In any case, governments are part of our lives.
Nowadays, governments tend to become more intrusive and “controlling”. Technology has helped to make this reality both easy to achieve and very effective - governments can now penetrate almost every aspect of every person’s life. Moreover, technology provides opportunities for smaller groups of people to control an increasing number of people.
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But what about the fact that technology can act as an antidote to centralized state control? And what if it can lead to a decentralized system of power that will give people more freedoms and well-being?
Introduction of control mechanisms in the blockchain
A fascinating experiment that answers these questions is happening right now in the world of cryptocurrencies. Dash , an alternative cryptocurrency created in 2014 on the basis of Bitcoin, recently introduced a decentralized control mechanism directly in its blockchain.
To understand this mechanism, one should start from a distance in order to understand how new monetary units are created in cryptocurrency. Like other currencies based on the Bitcoin code, Dash generates new coins (also called “block reward”) on a regular basis, using mathematical algorithms to determine exactly who will receive these coins. In Bitcoin, all 100% rewards for new blocks go to miners, i.e. those whose computers perform complex mathematical calculations to ensure the safety of the blockchain. But in Dash, the reward for blocks is divided into three separate groups:
Thus, 55% of new coins that appear as a result of the generation of new blocks are intended to support the operation of the payment network and its development. First of all, we are talking about the Masternoda Dash . The heart of any decentralized cryptocurrency is its network nodes - computers that store a copy of the blockchain and send transactions over the network. In Bitcoin, nodes do not receive rewards for their work, despite the fact that they play an important role in the operation of the system. In contrast, Dash has a 2nd level of the node network (Masternod), and they are compensated for doing their part of the job. As mentioned above, the amount of compensation for them is 45% of all manufactured new coins. Masternody provide important functions such as InstantX (instant payments) and DarkSend (anonymization of funds). Anyone can start their Masternode, but for this you have to confirm that you have the amount of 1000 DASH. This “security” always remains under the full control of its owner, but in order for Masternoda to remain active, these funds should not be wasted.
In addition to performing important technical tasks, Masternods are also a key element of the Decentralized Finance and Management System - in the Dash Budgeting System (Dash Budget System - DBS). DBS determines how those 10% of the reward for the new blocks will be spent - during the voting, on new budget initiatives.
The DBS system accepts offers from anyone who is willing to spend 5 DASH - that is how much (to protect against SPAM) it is worth making a proposal for consideration. After submission of the proposal, these 5 DASH “burn down” (destroyed). After the proposal has been submitted, all Masternode owners can vote on it, at the rate of “1 vote from each Masternoda”. In order for the proposal to be approved and paid for in the next monthly budget, two basic conditions must be met.
The first - the total number of "pure votes" (the difference between the votes "Yes" and "No") should exceed 10% of the number of all masternodes. Since at the moment there are about 3500 Masternodes, this “threshold of approval” is 350 “pure votes”.
The second is that in the accepted general budget there should be enough funds for your proposal. For example, for example, in the budget under discussion, 8,000 DASH is provided for the implementation of all proposals, but the total budget requested for all applications that received more than 10% of the votes is 9,000 DASH. Proposals in this case will be sorted by the number of "pure votes". Those with more votes will receive a higher priority. The system simply pays for all offers, starting with the highest number of votes down the list, until the funds run out. Offers receive only full funding, or do not receive funding at all. Partial payments are not provided. Consider the following example:
In this situation, the proposals â„–1, 2, 5 will be approved, but the proposals â„–3 and 4 - no. Proposal # 3 will not receive approval, as it received less than the required 10% of the vote.
Since the total current budget of 8000 DASH is not enough to pay for offer # 4, it cannot be approved. In this situation, only proposals totaling 7,500 DASH will be approved for funding, and the remaining 500 DASH in the budget are simply not created.
Here is a screenshot of a recent vote on current funding proposals (screenshot of DashVoteTracker.com ):
Thus, the Dash budgeting system is a decentralized, self-financing and self-governing mechanism.
Blockchain self-financing
One of the major problems of decentralized open source projects is the issue of financing. Who will pay for development, marketing, legal services, etc.? Historically, such projects were based on the efforts of volunteers or on corporate funding. Both of these options, however, have their drawbacks. In the first case, the project depends on loyalty and the availability of resources from a small group of supporters. But they, too, “want to eat,” like all other people ... What happens when their devotion or money runs out? In the second case, corporate sponsorship also has its drawbacks: a decentralized system is subject to the whims of shareholders and centralized corporations. Their vision of the development of the project may differ from the vision of most users of the system.
In the Dash system - the project literally finances itself! Currently, there are approved budget proposals that pay salaries to the system development team. Thus, every month, as long as the network approves of this, the Dash protocol produces a certain amount of DASH coins that are being paid to developers. In practice, this is a much more revolutionary solution than it might seem at first glance. We are dealing with a technology that pays for its own development! Dash developers are actually hired computer protocol workers!
Projects that are not directly related to the development of the system can also be funded under this model. A viable cryptocurrency ecosystem includes many related elements and services. In the end, if there were no mobile wallets, then, for example, using Bitcoin would not be as attractive, right? Using DBS, community members can offer any projects for funding. One example of this kind of project was the creation of a Dash Soda Dispenser, called “ Dash N 'Drink ”, which was first presented at the North American Bitcoin conference in 2016. This project allowed us to demonstrate the function of instant transactions Dash (the so-called “InstantX”) and to show the work of the retail outlet concept using a real example. The project was partially funded through DBS.
The Dash N 'Drink Soda Machine
The scope of possible proposals for development is limitless: marketing, the creation of new wallets, points of trade and much more can now be financed directly from the Dash blockchain. To achieve success, the project no longer needs to rely on the altruism of volunteers or (often to the detriment of users) to seek sympathy from corporate investors. The Dash project is now a kind of “living thing” with an innate ability to protect and grow naturally.
Self-government via blockchain
DBS goes far beyond the regular financing of new developments and projects. This system can also predetermine the overall direction of the project. In any decentralized open source project, the issue of management becomes more complex. Who is responsible for the changes? Who determines the general direction of development? Some projects, such as Linux and Bitcoin, in the first years of their existence, had a system of the so-called “benevolent dictator” in which the founders Linus Torvalds and Satoshi Nakamoto respectively made all the final decisions regarding the development. But such a structure is not adapted for long-term existence. In the end, either the founder leaves the project, or the users no longer agree with his views. When such fundamental questions arise as the vision of the future development of a project, decision making can cause rather heated debates and discussions. See what is happening now in the world of Bitcoin. Some questions are beginning to take a threatening character: what is the purpose of the bitcoin blockchain? Should it become only the highest level of global consensus among all network participants, or should it fulfill the role of a transaction network, i.e. process through the blockchain literally every ongoing transaction? This debate threatens to split users into two opposing sides.
In the Dash project, such controversial issues can be promptly resolved using DBS. The decision can be made not only with respect to financing issues, but also with respect to project management issues, including with regard to the areas of development. For example, in January, Evan Duffield (Evan Duffield), the creator of Dash, asked the network to increase the blockchain block size to 2 MB (in fact, he asked Masternody to vote on the question: should the block size be increased to 2 MB?). Within just a few hours, the required number of votes “FOR” was received, thus a change in the Dash system was approved, the analogue of which the Bitcoin community has been desperately debating for more than a year without any clear result.
The management, built directly on the blockchain, allowed the Dash cryptocurrency to accomplish another revolution in decentralization - Dash is not only self-funded, but also becomes truly self-governing.
Ochlocracy (crowd power)
But there are a number of concerns about the stability of such a control system. In particular, a voting system such as DBS raises concerns about the effectiveness of “crowd power”. In any governance structure, there are a number of incentives and actors involved that may hinder the achievement of consensus on controversial issues. And very often “the loudest speakers” become more noticeable in disputes, and not those who have invested more or understand the project better. Fortunately, DBS is not really a true democracy, it is a meritocracy, in which it is Dash's large investors who are able to have a decisive influence on the direction of development of the project. And since they are large investors (i.e., “put at stake” the most), they are naturally interested in making the most favorable decisions for the project. Of course, it is impossible to completely exclude the conduct of “undercover political games” by them, because this is so characteristic of human nature. But more importantly, the same incentives apply to all users who have access to voting.
Rise of the Machines?
Those who are deeply involved in the world of technology and cryptocurrency, as a rule, are positively inclined towards a wider use of technology and are in favor of assigning technologies to an increasing role in society. But, as can be seen from the title of this article, it can be assumed that some of the operating principles of promising technologies give rise to a certain degree of fear that technologies will gain control over too many aspects of our life. For some people, the self-financing and autonomous Dash system may seem “too omnipotent”. Do we really want to make a part of our life a system that actually controls not only ourselves, but also people? Should not the prerogative of making decisions, make judgments, etc. always remain entirely and completely dominated by people, not computers?
These concerns, however, on closer examination, appear baseless: after all, the Dash project is not controlled by a “faceless blockchain”, but in fact is under the control of ordinary people who implement their management functions “through the blockchain”. This system performs 3 main tasks:
1. It correctly establishes incentives for entities involved in managing a decentralized project;
2. It protects the management system from adverse external influences, thus making potential corruption difficult to implement;
3. Management becomes open and transparent. Instead of addressing issues by a small ruling elite behind closed doors, DBS technology effectively puts power in the hands of all comers - the entrance of new members to the system is not limited.
The path to a better future
Dash budget system outlines the contours of a new futuristic world. People are employed by a technical protocol built on the basis of mathematical algorithms. The release and circulation of electronic currency takes place on the principles of self-financing, being independent and self-governing. The system works openly and transparently - everyone can see and see for themselves. Think of the potential impact that such a system could have on corporations or governments. Social media resources would be under the control of their users and worked for their benefit, instead of using people's personal information as a “marketing product”. Or search engine-driven blockchains in which you can vote to encrypt personal search queries, hiding them from the prying eyes of the powerful. Or governments of different levels, which would really be created "from the people and for the people." In such a system, there is a huge innovative potential that can completely change the future of money and power.
Read more about Dash at Habrahabr
(For fans of “minus”, I remind you that I am not the author, the article is transferable. I would be grateful for the support of the translation efforts into Russian. Thank you!)
Nowadays, governments tend to become more intrusive and “controlling”. Technology has helped to make this reality both easy to achieve and very effective - governments can now penetrate almost every aspect of every person’s life. Moreover, technology provides opportunities for smaller groups of people to control an increasing number of people.
')
But what about the fact that technology can act as an antidote to centralized state control? And what if it can lead to a decentralized system of power that will give people more freedoms and well-being?
Introduction of control mechanisms in the blockchain
A fascinating experiment that answers these questions is happening right now in the world of cryptocurrencies. Dash , an alternative cryptocurrency created in 2014 on the basis of Bitcoin, recently introduced a decentralized control mechanism directly in its blockchain.
To understand this mechanism, one should start from a distance in order to understand how new monetary units are created in cryptocurrency. Like other currencies based on the Bitcoin code, Dash generates new coins (also called “block reward”) on a regular basis, using mathematical algorithms to determine exactly who will receive these coins. In Bitcoin, all 100% rewards for new blocks go to miners, i.e. those whose computers perform complex mathematical calculations to ensure the safety of the blockchain. But in Dash, the reward for blocks is divided into three separate groups:
45% of all new coins go to Miners;
another 45% to Masternod owners;
The remaining 10% of new coins are sent to the Dash Development Finance System.
Thus, 55% of new coins that appear as a result of the generation of new blocks are intended to support the operation of the payment network and its development. First of all, we are talking about the Masternoda Dash . The heart of any decentralized cryptocurrency is its network nodes - computers that store a copy of the blockchain and send transactions over the network. In Bitcoin, nodes do not receive rewards for their work, despite the fact that they play an important role in the operation of the system. In contrast, Dash has a 2nd level of the node network (Masternod), and they are compensated for doing their part of the job. As mentioned above, the amount of compensation for them is 45% of all manufactured new coins. Masternody provide important functions such as InstantX (instant payments) and DarkSend (anonymization of funds). Anyone can start their Masternode, but for this you have to confirm that you have the amount of 1000 DASH. This “security” always remains under the full control of its owner, but in order for Masternoda to remain active, these funds should not be wasted.
In addition to performing important technical tasks, Masternods are also a key element of the Decentralized Finance and Management System - in the Dash Budgeting System (Dash Budget System - DBS). DBS determines how those 10% of the reward for the new blocks will be spent - during the voting, on new budget initiatives.
The DBS system accepts offers from anyone who is willing to spend 5 DASH - that is how much (to protect against SPAM) it is worth making a proposal for consideration. After submission of the proposal, these 5 DASH “burn down” (destroyed). After the proposal has been submitted, all Masternode owners can vote on it, at the rate of “1 vote from each Masternoda”. In order for the proposal to be approved and paid for in the next monthly budget, two basic conditions must be met.
The first - the total number of "pure votes" (the difference between the votes "Yes" and "No") should exceed 10% of the number of all masternodes. Since at the moment there are about 3500 Masternodes, this “threshold of approval” is 350 “pure votes”.
The second is that in the accepted general budget there should be enough funds for your proposal. For example, for example, in the budget under discussion, 8,000 DASH is provided for the implementation of all proposals, but the total budget requested for all applications that received more than 10% of the votes is 9,000 DASH. Proposals in this case will be sorted by the number of "pure votes". Those with more votes will receive a higher priority. The system simply pays for all offers, starting with the highest number of votes down the list, until the funds run out. Offers receive only full funding, or do not receive funding at all. Partial payments are not provided. Consider the following example:
In this situation, the proposals â„–1, 2, 5 will be approved, but the proposals â„–3 and 4 - no. Proposal # 3 will not receive approval, as it received less than the required 10% of the vote.
Since the total current budget of 8000 DASH is not enough to pay for offer # 4, it cannot be approved. In this situation, only proposals totaling 7,500 DASH will be approved for funding, and the remaining 500 DASH in the budget are simply not created.
Here is a screenshot of a recent vote on current funding proposals (screenshot of DashVoteTracker.com ):
Thus, the Dash budgeting system is a decentralized, self-financing and self-governing mechanism.
Blockchain self-financing
One of the major problems of decentralized open source projects is the issue of financing. Who will pay for development, marketing, legal services, etc.? Historically, such projects were based on the efforts of volunteers or on corporate funding. Both of these options, however, have their drawbacks. In the first case, the project depends on loyalty and the availability of resources from a small group of supporters. But they, too, “want to eat,” like all other people ... What happens when their devotion or money runs out? In the second case, corporate sponsorship also has its drawbacks: a decentralized system is subject to the whims of shareholders and centralized corporations. Their vision of the development of the project may differ from the vision of most users of the system.
In the Dash system - the project literally finances itself! Currently, there are approved budget proposals that pay salaries to the system development team. Thus, every month, as long as the network approves of this, the Dash protocol produces a certain amount of DASH coins that are being paid to developers. In practice, this is a much more revolutionary solution than it might seem at first glance. We are dealing with a technology that pays for its own development! Dash developers are actually hired computer protocol workers!
Projects that are not directly related to the development of the system can also be funded under this model. A viable cryptocurrency ecosystem includes many related elements and services. In the end, if there were no mobile wallets, then, for example, using Bitcoin would not be as attractive, right? Using DBS, community members can offer any projects for funding. One example of this kind of project was the creation of a Dash Soda Dispenser, called “ Dash N 'Drink ”, which was first presented at the North American Bitcoin conference in 2016. This project allowed us to demonstrate the function of instant transactions Dash (the so-called “InstantX”) and to show the work of the retail outlet concept using a real example. The project was partially funded through DBS.
The Dash N 'Drink Soda Machine
The scope of possible proposals for development is limitless: marketing, the creation of new wallets, points of trade and much more can now be financed directly from the Dash blockchain. To achieve success, the project no longer needs to rely on the altruism of volunteers or (often to the detriment of users) to seek sympathy from corporate investors. The Dash project is now a kind of “living thing” with an innate ability to protect and grow naturally.
Self-government via blockchain
DBS goes far beyond the regular financing of new developments and projects. This system can also predetermine the overall direction of the project. In any decentralized open source project, the issue of management becomes more complex. Who is responsible for the changes? Who determines the general direction of development? Some projects, such as Linux and Bitcoin, in the first years of their existence, had a system of the so-called “benevolent dictator” in which the founders Linus Torvalds and Satoshi Nakamoto respectively made all the final decisions regarding the development. But such a structure is not adapted for long-term existence. In the end, either the founder leaves the project, or the users no longer agree with his views. When such fundamental questions arise as the vision of the future development of a project, decision making can cause rather heated debates and discussions. See what is happening now in the world of Bitcoin. Some questions are beginning to take a threatening character: what is the purpose of the bitcoin blockchain? Should it become only the highest level of global consensus among all network participants, or should it fulfill the role of a transaction network, i.e. process through the blockchain literally every ongoing transaction? This debate threatens to split users into two opposing sides.
In the Dash project, such controversial issues can be promptly resolved using DBS. The decision can be made not only with respect to financing issues, but also with respect to project management issues, including with regard to the areas of development. For example, in January, Evan Duffield (Evan Duffield), the creator of Dash, asked the network to increase the blockchain block size to 2 MB (in fact, he asked Masternody to vote on the question: should the block size be increased to 2 MB?). Within just a few hours, the required number of votes “FOR” was received, thus a change in the Dash system was approved, the analogue of which the Bitcoin community has been desperately debating for more than a year without any clear result.
The management, built directly on the blockchain, allowed the Dash cryptocurrency to accomplish another revolution in decentralization - Dash is not only self-funded, but also becomes truly self-governing.
Ochlocracy (crowd power)
But there are a number of concerns about the stability of such a control system. In particular, a voting system such as DBS raises concerns about the effectiveness of “crowd power”. In any governance structure, there are a number of incentives and actors involved that may hinder the achievement of consensus on controversial issues. And very often “the loudest speakers” become more noticeable in disputes, and not those who have invested more or understand the project better. Fortunately, DBS is not really a true democracy, it is a meritocracy, in which it is Dash's large investors who are able to have a decisive influence on the direction of development of the project. And since they are large investors (i.e., “put at stake” the most), they are naturally interested in making the most favorable decisions for the project. Of course, it is impossible to completely exclude the conduct of “undercover political games” by them, because this is so characteristic of human nature. But more importantly, the same incentives apply to all users who have access to voting.
Rise of the Machines?
Those who are deeply involved in the world of technology and cryptocurrency, as a rule, are positively inclined towards a wider use of technology and are in favor of assigning technologies to an increasing role in society. But, as can be seen from the title of this article, it can be assumed that some of the operating principles of promising technologies give rise to a certain degree of fear that technologies will gain control over too many aspects of our life. For some people, the self-financing and autonomous Dash system may seem “too omnipotent”. Do we really want to make a part of our life a system that actually controls not only ourselves, but also people? Should not the prerogative of making decisions, make judgments, etc. always remain entirely and completely dominated by people, not computers?
These concerns, however, on closer examination, appear baseless: after all, the Dash project is not controlled by a “faceless blockchain”, but in fact is under the control of ordinary people who implement their management functions “through the blockchain”. This system performs 3 main tasks:
1. It correctly establishes incentives for entities involved in managing a decentralized project;
2. It protects the management system from adverse external influences, thus making potential corruption difficult to implement;
3. Management becomes open and transparent. Instead of addressing issues by a small ruling elite behind closed doors, DBS technology effectively puts power in the hands of all comers - the entrance of new members to the system is not limited.
The path to a better future
Dash budget system outlines the contours of a new futuristic world. People are employed by a technical protocol built on the basis of mathematical algorithms. The release and circulation of electronic currency takes place on the principles of self-financing, being independent and self-governing. The system works openly and transparently - everyone can see and see for themselves. Think of the potential impact that such a system could have on corporations or governments. Social media resources would be under the control of their users and worked for their benefit, instead of using people's personal information as a “marketing product”. Or search engine-driven blockchains in which you can vote to encrypt personal search queries, hiding them from the prying eyes of the powerful. Or governments of different levels, which would really be created "from the people and for the people." In such a system, there is a huge innovative potential that can completely change the future of money and power.
Read more about Dash at Habrahabr
(For fans of “minus”, I remind you that I am not the author, the article is transferable. I would be grateful for the support of the translation efforts into Russian. Thank you!)
Source: https://habr.com/ru/post/299128/
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