Whitepaper Insight – Where Eco Scores Points Over Rival Bitcoin
The 3 ECO advantages
The 3 ECO-advantages Over Bitcoin
The global currency protocol, Eco, is rightfully named so for its economical, ecological, and ecommerce advantages over Bitcoin and other digital currencies. Here’s a brief into how Eco’s global currency protocol has been designed to score points on established rivals such as Bitcoin, including insights from the design proposal.
The ECO-nomical Advantage
While the Bitcoin network assumes nodes cannot be trusted, and payment platforms such as credit card networks rely on a single trusted party to clear transactions and require trust of all nodes, Eco strikes “more of a middle ground,” between decentralization (like Bitcoin) and centralization (Visa), says Garrett Camp, founder of the Eco Foundation, which is the principal entity behind making Eco a reality. The Eco protocol is designed to create and maintain an evenly decentralized network.
In the Eco protocol, distributed nodes are run by verified organizations (or ‘nodes’) with a collective incentive to maintain the network. So, instead of having cryptocurrency “miners” compete against one another for the entire crypto-lottery prize, every time an Eco node confirms a block of financial transactions, the cryptocurrency reward is dispensed across the network to all nodes and users.
The ECO-logical Advantage
Bitcoin mining is a very energy-intensive process due to the design of the protocol. As the hash rate has increased, the Proof-of-Work algorithm has grown to consume large amounts of electricity, and a small number of entities now control the majority of mining power. In contrast, the Eco protocol provides collective incentives for optimal energy efficiency. The project aims to improve the energy consumption of mining. The Eco protocol allows only verified nodes to distribute block rewards, who are motivated to ‘provide just enough hash power to verify that transactions are valid within a collectively agreed upon level of maximum latency’, thereby leading to optimal energy efficiency.
The ECO-mmerce Advantage
Eco will start with larger block sizes and shorter block times than Bitcoin, enabled by a fast network of servers. Targeting an initial confirmation time of less than one minute, Eco will enable fast transactions with low fees. In terms of scaling, the project aims to ultimately achieve a capacity of 100,000+ transactions per second by using Transaction Sharding. This will be a crucial feature in negotiating the partnerships with service providers and merchants that make adoption possible.
While the above design does sound promising over the existing blockchain infrastructure, how the Eco project actually delivers, and whether it will be able to achieve what it as set out to, is yet to be determined. Do write to us with your thoughts on the Eco protocol in the comments section below.