With all the drama in the Bitcoin Cash camp over the past few weeks it is good to know that there is a project that is focussed on providing a practical solution and not worried about egos, infighting and hash wars.
The team at Dolla have been working hard to develop a blockchain that is fast and affordable.
In the BCH ABC and BCH SV standoff we saw the illusion of decentralisation evaporate as each faction made a peacock like show of their hashing power and we saw bitcoin.com temporarily direct all of their hashing power toward the ABC side of the fork.
This experience taught us a few lessons:
- A small minority control the hashing power, the consensus mechanism – this demonstrates the need for alternative options.
- There are some big hearts as well as big egos in the crypto sphere – Satoshi Nakamoto gracefully bowed out early in the evolution of Bitcoin with what seems an optimistic hope of how her project would evolve – her act of benevolence is an example of the true spirit of Bitcoin. Given the behaviour of the advocates of BCH ABC & BCH SV I am convinced, now more than ever, that Satoshi is Female.
- Bitcoin doesn’t change human nature – I believe we are in a phase of transition, where people are becoming kinder, more enlightened and more compassionate – this is an evolution and unfortunately not a quantum leap. This new technology attracts the best and worst of human nature – those who want to control and those who want to decentralise.
- Some projects are focusing inwards and not on what the end user needs
With those lessons in mind it is great to see a project like Dolla coming to the fore.
Fortunately Dolla has anticipated this kind of behaviour and has built their blockchain to eliminate the possibility of 51% attacks and greatly reduce the likelihood of dDoS (Distributed Denial of Service) attacks like the ones threatened in the BCH hash war.
The absence of forks in the design of the Dolla blockchain, and the immediate finality of transactions (1 second block confirmations) means that there is no possibility of double-spending. On the Dolla blockchain it is always possible to determine clearly what money is spent and what money is unspent – there is no option to select the longest chain as the viable truth.
In terms of a dDoS attack where the attacker floods the network with packets of data from multiple sources, Dolla’s decentralised nature means that an attacker must hit many consensus nodes at once in order to achieve any effect. If the attack is successful, the cryptocurrency is guaranteed to only be slowed down, not to become unsafe.
Built into Dolla’s design is the ability to scale up individual consensus nodes to multiple machines easily, which allows node operators to match an attacker’s resources and since Dolla is not a Proof-of-Work or Proof-of-Stake blockchain, the risk of 51% attacks has been eliminated and dDoS attacks has dealt with at inception.
Dolla is a decentralised consortium, which means the greatest threat to the network would be from an attacker managing to make sufficient number of nodes collude, and this risk has been evaluated and minimised by selecting the initial consortium in such a way that collusion is unlikely and enforcing a degree of transparency so high that collusion is likely to be detected.
The governance model includes ensuring the consortium is made up of a decentralised network of serious, independent participants that operate transparently and under public scrutiny. This means that the network Node Operators will undergo Know Your Customer procedures and will be publicly identifiable.
Network Node Operators will be geographically dispersed to ensure a distributed global user base and to reduce the risk of being controlled by a single jurisdiction, political agenda, or fiscal plan.
And the diversity of types of consensus members will be broad and include large commercial corporations, small businesses, nonprofits, educational institutions, individual experts etc. this is another implementation to reduce the risk of collusion.
The network will also be deployed across many different hosting solutions including private servers, cloud services, etc. and technology stacks to reduce the risk of technical outages.
Consortium members agree to uphold the goals of Dolla that are outlined in the white paper and the penalties for collusion are severe, and include risking their stake and having their node operator status revoked.
With these factors addressed Dolla can get on with the mission of delivering a fast and affordable payment system for merchants worldwide and leave the drama behind!