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Design

and architecture

Design

Decisions made at an early stage can have tremendous repercussions later. The choice of algorithms, architecture, type of blockchain, programming environment, data structure – the list goes on. One cannot afford the luxury of mistakes.

There are numerous architectural nuances when it comes to blockchain implementation. Here are a few.

  • Proof of Work vs Proof of Stake, and hybrid designs
  • Consensus protocols
  • Permissioned or permissionless

Closely tied to the chosen architecture of the blockchain, a cryptotoken or cryptocurrency (depending on your viewpoint) can have various features to meet the overall design goals.

Blockchains can be built to communicate, or a type of “middleware” can be created to effect communications, and even transfer of tokens between them. This is called Cross Chain capability.

A Distributed Application executes in close conjunction with its home blockchain, and is built using a computer script or language. The constraints of the script and the blockchain must be taken into account.

Ethereum Basics

Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.

What is a DApp?

DApps (pronounced Dee-apps) are a new model for building successful and massively scalable applications. Bitcoin led the way with its open-source, peer-to-peer nature, cryptographically-stored records (block chain), and limited number of tokens that power the use of its features.

  1. The application must be completely open-source, it must operate autonomously, and with no entity controlling the majority of its tokens. The application may adapt its protocol in response to proposed improvements and market feedback but all changes must be decided by consensus of its users.
  2. The application's data and records of operation must be cryptographically stored in a public, decentralizedblockchain in order to avoid any central points of failure.
  3. The application must use a cryptographic token which is necessary for access to the application and any contribution of value from (miners / farmers) should be rewarded in the application’s tokens.
  4. The application must generate tokens according to a standard crytptographic algorithm acting as a proof of the value nodes are contributing to the application (Proof of Work or Proof of Stake Algorithms).
What is a DAO?

A decentralized autonomous organization (DAO), fully automated business entity (FAB), or distributed autonomous corporation/company (DAC) is a decentralized network of narrow-AI autonomous agents which perform an output-maximizing production function and which divides its labor into computationally intractable tasks.

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