🐯 Learning With Neko Week 41.
Hola, Necats, happy weekend today we'll talk about Nominated Proof of Stake (NPoS)
What Is Nominated Proof of Stake (NPoS)?
Nominated Proof of Stake is a variation of the Proof-of-Stake consensus mechanism that aims to be more democratic, and therefore more fair, than its predecessor. Put simply, it allows token holders to nominate validators to represent them in the block validation process. Only nominated validators can participate in block formation and each individual nominator can nominate a specific number of validators.
To follow, these networks automatically distribute the stake among the participating validators evenly with penalization mechanisms for both validators and nominators in case of malicious activities. Polkadot was the first blockchain to create and use the Nominated Proof of Stake system, supporting its core mission of interoperability and decentralization.
#NekoLearn @OriNeko
Hola, Necats, happy weekend today we'll talk about Nominated Proof of Stake (NPoS)
What Is Nominated Proof of Stake (NPoS)?
Nominated Proof of Stake is a variation of the Proof-of-Stake consensus mechanism that aims to be more democratic, and therefore more fair, than its predecessor. Put simply, it allows token holders to nominate validators to represent them in the block validation process. Only nominated validators can participate in block formation and each individual nominator can nominate a specific number of validators.
To follow, these networks automatically distribute the stake among the participating validators evenly with penalization mechanisms for both validators and nominators in case of malicious activities. Polkadot was the first blockchain to create and use the Nominated Proof of Stake system, supporting its core mission of interoperability and decentralization.
#NekoLearn @OriNeko
How Does Nominated Proof-of-Stake (NPoS) Work?
Nominated Proof-of-Stake combines the traditional Proof-of-Stake mechanism with stakeholder voting by dividing the network into two participants: validators and nominators. The NPoS voting mechanism follows the sequential Phragmen election technique focusing on fair representation. While that may sound complex, let’s break down what it means.
each block is processed by an active validator set. This is a group of validators chosen by the nominators. Nominators can nominate a specific number of validator nodes. Next, validators receive slots in the validator set relative to the stake backing them.
The validators which receive the most nominations, and thus have a higher stake backing them, become the validator set for that block. This changes every “era”, a predefined amount of time, ranging from 4 hours to 24 hours. Once the active set is finalized, the network distributes the stake between all chosen validators to keep the process fair.
#NekoLearn @OriNeko
Nominated Proof-of-Stake combines the traditional Proof-of-Stake mechanism with stakeholder voting by dividing the network into two participants: validators and nominators. The NPoS voting mechanism follows the sequential Phragmen election technique focusing on fair representation. While that may sound complex, let’s break down what it means.
each block is processed by an active validator set. This is a group of validators chosen by the nominators. Nominators can nominate a specific number of validator nodes. Next, validators receive slots in the validator set relative to the stake backing them.
The validators which receive the most nominations, and thus have a higher stake backing them, become the validator set for that block. This changes every “era”, a predefined amount of time, ranging from 4 hours to 24 hours. Once the active set is finalized, the network distributes the stake between all chosen validators to keep the process fair.
#NekoLearn @OriNeko
NPoS Vs DPoS: What’s the Difference?
If you know anything about delegated proof-of-stake, you may have noticed these two consensus mechanisms behave quite similarly. Despite their similarities, they are not identical.
Validation in both NPoS and DPoS blockchains both revolve around two different network users, one with the power to vote the other in. However, these voters are named delegators in DPoS and nominators in NPoS.
But there’s also another key difference. With NPoS, both nominators and validators put up a stake as collateral. This means that both nominators and validators may be punished for bad behavior via slashing. On the other hand, in DPoS, only validators receive punishment for bad behavior. Meaning in a DPoS system, delegators are not punished for the actions of malicious validators, ususally that is. Today, some DPoS mechanisms do include ways to punish delegators too. So in fact, the line between these two mechanisms can sometimes be blurred.
#NekoLearn @OriNeko
If you know anything about delegated proof-of-stake, you may have noticed these two consensus mechanisms behave quite similarly. Despite their similarities, they are not identical.
Validation in both NPoS and DPoS blockchains both revolve around two different network users, one with the power to vote the other in. However, these voters are named delegators in DPoS and nominators in NPoS.
But there’s also another key difference. With NPoS, both nominators and validators put up a stake as collateral. This means that both nominators and validators may be punished for bad behavior via slashing. On the other hand, in DPoS, only validators receive punishment for bad behavior. Meaning in a DPoS system, delegators are not punished for the actions of malicious validators, ususally that is. Today, some DPoS mechanisms do include ways to punish delegators too. So in fact, the line between these two mechanisms can sometimes be blurred.
#NekoLearn @OriNeko
Reef is set to launch its first product on June 26th. Refer to the official tweet by REEF
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Binance freezes $5 million in funds looted from BtcTurk after alleged $54 million hack of Turkish exchange
Turkish cryptocurrency exchange BtcTurk announced that a cyberattack affected the cryptocurrency stored in ten of its hot wallets following reports of suspicious transfers of Avalanche tokens on Saturday. The exchange noted that its cold wallets, which contain the vast majority of its assets, remain secure and the company remains solvent, according to the company's announcement.
Binance CEO Richard Teng announced on X that his company, the world's largest crypto exchange, is assisting BtcTurk with the investigation and has frozen "over $5.3 million in stolen funds so far."
#NekoNews @OriNeko
Turkish cryptocurrency exchange BtcTurk announced that a cyberattack affected the cryptocurrency stored in ten of its hot wallets following reports of suspicious transfers of Avalanche tokens on Saturday. The exchange noted that its cold wallets, which contain the vast majority of its assets, remain secure and the company remains solvent, according to the company's announcement.
Binance CEO Richard Teng announced on X that his company, the world's largest crypto exchange, is assisting BtcTurk with the investigation and has frozen "over $5.3 million in stolen funds so far."
#NekoNews @OriNeko
Hey everyone. happy weekend, I've got two options for us to talk about 2 infrasturctrue goverment Tokens . Pick the one you're interested in discussing.
Anonymous Poll
56%
ZRO
44%
W
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Okay, so according to the voting results, the majority choose ZRO, in the next post I will explain about ZRO.
Neko 🐯
Hey everyone. happy weekend, I've got two options for us to talk about 2 infrasturctrue goverment Tokens . Pick the one you're interested in discussing.
LayerZero is built on the concept of unified cross-chain development, otherwise expressed through the term “omnichain”. In essence, LayerZero wants to be the base layer for a large mesh network where any blockchain can reliably communicate and exchange data with any other chain in the ecosystem. This vision is expressed through the name “LayerZero”, which nods to it being a foundational layer for communication between blockchains, be they Layer 1 or Layer 2.
LayerZero hopes to standardize application development across all chains, much like TCP/IP standardized internet development.
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How does LayerZero work?
The key to LayerZero is that it allows blockchains to communicate without the use of expensive on-chain light nodes, or non-secure middle chains. It does this with Ultra-Light Nodes, blockchain endpoints, decentralized third-party oracles, and relayers. Let’s see how each of these features helps layer zero operate.
🎥 LayerZero Endpoint
Endpoints are how blockchains send, verify, and receive messages in LayerZero. Thus, each chain supported by the LayerZero protocol must deploy its own endpoint. LayerZero’s endpoints enable each supported blockchain to become part of a fully connected network. These endpoints act as nodes in this network, with each one having a direct connection to every other node, enabling cross-chain transactions directly with any other chain on the network.
🎥 Ultra-Light Nodes
Ultra-Light Nodes (ULNs) are the function at the heart of LayerZero, as they carry out a key role in validating transactions through LayerZero. As a result, all LayerZero endpoints run ULNs, which are generally executed via smart contracts. Essentially, ULNs make it possible to verify the transactions between blockchains on LayerZero, without having to store all of the relevant transaction data on-chain.
🎥 Oracle
A blockchain oracle is responsible for reading the block header from one chain (using the ULN) and sending it to another chain so that the receiving chain can verify the transaction. Oracles play a crucial role as they contribute half of the required information to help validate transactions.
#NekoSpotlight @OriNeko
The key to LayerZero is that it allows blockchains to communicate without the use of expensive on-chain light nodes, or non-secure middle chains. It does this with Ultra-Light Nodes, blockchain endpoints, decentralized third-party oracles, and relayers. Let’s see how each of these features helps layer zero operate.
Endpoints are how blockchains send, verify, and receive messages in LayerZero. Thus, each chain supported by the LayerZero protocol must deploy its own endpoint. LayerZero’s endpoints enable each supported blockchain to become part of a fully connected network. These endpoints act as nodes in this network, with each one having a direct connection to every other node, enabling cross-chain transactions directly with any other chain on the network.
Ultra-Light Nodes (ULNs) are the function at the heart of LayerZero, as they carry out a key role in validating transactions through LayerZero. As a result, all LayerZero endpoints run ULNs, which are generally executed via smart contracts. Essentially, ULNs make it possible to verify the transactions between blockchains on LayerZero, without having to store all of the relevant transaction data on-chain.
A blockchain oracle is responsible for reading the block header from one chain (using the ULN) and sending it to another chain so that the receiving chain can verify the transaction. Oracles play a crucial role as they contribute half of the required information to help validate transactions.
#NekoSpotlight @OriNeko
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EigenLayer enhances EigenDA security to combat Sybil attacks
EigenLayer has implemented an additional security feature for its EigenDA data availability service on the Ethereum mainnet to prevent Sybil and distributed denial of service attacks.
According to an X post from EigenDA, the whitelist security measure utilizes either an internet protocol address or Ethereum's elliptic curve digital signature algorithm (ECDSA) authentication to ensure enhanced protection and secure access to the service.
ECDSA authentication is a cryptographic method for verifying the identity of a user, device or system. It is based on the principles of public-key cryptography and uses elliptic curve cryptography to ensure secure authentication.
#NekoNews @OriNeko
EigenLayer has implemented an additional security feature for its EigenDA data availability service on the Ethereum mainnet to prevent Sybil and distributed denial of service attacks.
According to an X post from EigenDA, the whitelist security measure utilizes either an internet protocol address or Ethereum's elliptic curve digital signature algorithm (ECDSA) authentication to ensure enhanced protection and secure access to the service.
ECDSA authentication is a cryptographic method for verifying the identity of a user, device or system. It is based on the principles of public-key cryptography and uses elliptic curve cryptography to ensure secure authentication.
#NekoNews @OriNeko
Saylor Highlights Bitcoin’s Dominance Over Other Assets
MicroStrategy co-founder Michael Saylor recently took to X (formerly Twitter) to highlight Bitcoin's dominance over every other asset class. The chart shows that Bitcoin's cumulative returns have reached 21,372,237% since 2011. The nascent cryptocurrency dwarfs the returns of gold, tech stocks, and other assets. Bitcoin has also outperformed every other asset class on an annualized basis, with average returns of 148%.
Bitcoin is currently down 12.73% from its record high, and it is unclear whether it will be able to reclaim its current peak in the near future due to the lack of bullish catalysts. The cryptocurrency is failing to revive its bullish momentum due to the double-whammy of significant outflows from cryptocurrency investment products and persistent inflation that is preventing further rate hikes.
#NekoNews @OriNeko
MicroStrategy co-founder Michael Saylor recently took to X (formerly Twitter) to highlight Bitcoin's dominance over every other asset class. The chart shows that Bitcoin's cumulative returns have reached 21,372,237% since 2011. The nascent cryptocurrency dwarfs the returns of gold, tech stocks, and other assets. Bitcoin has also outperformed every other asset class on an annualized basis, with average returns of 148%.
Bitcoin is currently down 12.73% from its record high, and it is unclear whether it will be able to reclaim its current peak in the near future due to the lack of bullish catalysts. The cryptocurrency is failing to revive its bullish momentum due to the double-whammy of significant outflows from cryptocurrency investment products and persistent inflation that is preventing further rate hikes.
#NekoNews @OriNeko
Storj to Participate in Media Tech Sustainability Summit on June
Storj is scheduled to speak at the Media Tech Sustainability Summit on June 25th. The event is focused on sustainability in media. Storj will be participating alongside partners Ad-Signal and Shadow Magic Studios. Refer to the official tweet by STORJ
📈 Neko Forecasting $STORJ for short-term correction and bounce from current marked demand zone for buy position.
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Storj is scheduled to speak at the Media Tech Sustainability Summit on June 25th. The event is focused on sustainability in media. Storj will be participating alongside partners Ad-Signal and Shadow Magic Studios. Refer to the official tweet by STORJ
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Light Protocol and Helius Labs introduce ‘ZK Compression’ to further scale Solana apps
Solana-based developers Light Protocol and Helius Labs have launched a new way for applications on Solana to scale using a technology dubbed "ZK Compression," the two firms announced.
ZK Compression works through a process known as state compression, allowing developers to store certain types of data using Solana's cheaper ledger space rather than its more expensive account space. A "hash" or fingerprint of off-chain data is stored on-chain for verification using "sparse state trees," according to ZK Compression's documentation.
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Solana-based developers Light Protocol and Helius Labs have launched a new way for applications on Solana to scale using a technology dubbed "ZK Compression," the two firms announced.
ZK Compression works through a process known as state compression, allowing developers to store certain types of data using Solana's cheaper ledger space rather than its more expensive account space. A "hash" or fingerprint of off-chain data is stored on-chain for verification using "sparse state trees," according to ZK Compression's documentation.
#NekoNews @OriNeko
AltLayer (ALT) will unlock token on 25 june
On June 25, AltLayer is set to unlock over 100 million ALT tokens. These tokens are allocated for treasury, community, and ecosystem development.
📈 Neko Forecasting $YGG for short-term correction and bounce from current marked demand zone for buy position.
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On June 25, AltLayer is set to unlock over 100 million ALT tokens. These tokens are allocated for treasury, community, and ecosystem development.
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Yield Guild Games (YGG) will unlock token on 27 june
In a few days, YGG will unlock a significant portion of its tokens. These tokens will be distributed among the community, developers, investors, and the treasury, further supporting the guild’s growth and ecosystem development.
📈 Neko Forecasting $YGG for short-term correction and bounce from current marked demand zone for buy position.
#NekoChart @OriNeko
In a few days, YGG will unlock a significant portion of its tokens. These tokens will be distributed among the community, developers, investors, and the treasury, further supporting the guild’s growth and ecosystem development.
#NekoChart @OriNeko
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Digital asset investment products experienced significant outflows for the second consecutive week, totaling $584m:
🎥 Bitcoin saw $630m in outflows, but short positions also decreased by $1.2m
🎥 Ethereum faced $58m in outflows, reflecting negative sentiment
🎥 Multi-asset products had $98m in inflows, indicating investor interest in altcoins
🎥 The US led with $475m in outflows, while Switzerland and Brazil saw inflows of $39m and $48.5m, respectively
#NekoNews @OriNeko
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