CORE entered the crypto market through a groundbreaking airdrop on February 8, 2023. Since then, it has made a name for itself in the crypto market, being one of the few projects that has both its own ecosystem and a self-sustaining blockchain mechanism.
The world is starting to understand more about how web3 will improve our systems as blockchain technology is deployed in supply chains, national currencies, and entertainment. However, the blockchains we currently use face other challenges as they encounter specific barriers to widespread adoption.
What is Core?
Core is one of the newest blockchains in the cryptocurrency space, and its native coin is CORE. Many popular decentralized networks face the so-called “Blockchain Trilemma,” where they have to choose to give up one of three factors in order to achieve either decentralization, security, or fast and efficient scalability.
Core, an evolution of the Geth (Go-Ethereum) codebase, is designed to serve as the ultimate blockchain network that is fully decentralized, secure, and scalable. Notably, Core has learned from the operating models of Bitcoin, Ethereum, Polygon, Solana, and the Binance Smart Chain networks. In terms of scalability, Core is comparable to the Polygon network, Solana chain, and Binance Smart Chain networks. Its security is comparable to Bitcoin and Ethereum, and the protocol aims to achieve a level of decentralization similar to the Bitcoin network.
To keep the Core network running, the protocol team adjusts governance parameters, block rewards, and validators. Currently, the development team plays a major role in the Core DAO. But the protocol is working to expand its DAO to achieve a higher level of decentralization over time.
How does Core work?
Core uses the Proof of Work consensus algorithm and a modified version of the Proof of Stake algorithm called Delegated Proof of Stake. The Core blockchain is powered by a new mechanism called Satoshi Plus.
Proof of Work
The Core blockchain is inspired by the Proof of Work consensus mechanism implemented by Bitcoin and Dogecoin. PoW is a decentralised mechanism that allows anyone with computing power to participate in mining. Core relayers transmit each Bitcoin block as a transaction to the Core chain. This relay mechanism allows Satoshi Plus to trustlessly validate delegated hashing power while also benefiting from the Bitcoin network’s robust security model to protect Core.
Delegated Proof of Stake
The Proof of Stake consensus mechanism involves staking cryptocurrency to secure the network. Ethereum is the largest blockchain network that currently uses this validation model. Notably, Delegated Proof of Stake (DPoS) is an improved version of the Proof of Stake mechanism. The DPoS mechanism was created to allow smaller stakers to vote or elect validators. The Core Protocol combines the DPoS validation model with the Proof of Work model.
Satoshi Plus Consensus Mechanism
The working principle of the Satoshi Plus mechanism that the Core network adopts is that it leverages Bitcoin’s Proof of Work consensus mechanism and the Delegated Proof of Stake mechanism, while ensuring EVM compatibility.
The Satoshi Plus consensus mechanism is unique in that it combines the hash power generated by Bitcoin miners and Delegated Proof of Stake. This improves decentralization and security while enhancing scalability, making it superior to the proof of work mechanism. The Satoshi Plus mechanism creates a bridge for developers who want to create applications that integrate well with web3 and promote true decentralization.
This system is unique, so let’s look at its parts in more detail to understand how it works. First, here are the participants in the ecosystem.
Components of the ecosystem
- Validators: The role of validators in the chain is to confirm transactions and also create new blocks.
- Delegators: Users who cannot become validators can still participate in the chain by selecting validators and then staking some of their Core tokens with that validator. These users are called delegators. They also have to pay the validator a certain commission rate because the validator helps them interact directly with the chain.
- BTC miners: In the description of how the Satoshi mechanism works, it is mentioned that hash power is taken from Bitcoin miners and transferred to validators.
- Verifiers: Validators report bad players in the network. A validator engaging in malicious activities may be penalized by having their rewards or stake reduced or even being removed from the validator list.
Other components involved in the chain include:
- Validators’ election: The top validators are selected in this way to form the validator set. A validator is “selected” in each round based on their hybrid score. The live validators are refreshed every 200 blocks (transactions per second) to ensure a more reliable TPS. TPS represents the throughput of a network.
- Hybrid Scores: Validators are selected by Core’s protocol function based on their final score, which is determined based on CORE’s authorization and BTC hashing power.
- Round: The period in which the Core adjusts the validator consensus and distributes rewards is set to 1 day. The top validators are selected to join the validator set after each day and are responsible for creating blocks for 1 round. All accumulated rewards are distributed after each round. The validator quorum is also decided after each round.
- Slot: Each round is divided into slots, which are 3-second intervals. A validator creates a block in a slot (or fails to create one). Validators build blocks using this time division, giving each validator a chance to create a block.
- Epoch: To maintain a relatively stable TPS within a round, the system periodically checks the status of each validator. This process removes captive validators from the quorum, preventing them from participating in consensus. By removing captive validators, the system ensures that only active and valid validators participate in the consensus process, helping to maintain TPS stability in the network. The current system validates 200 slots every 10 minutes.
History of CORE
Core’s innovation is enabled by the blockchain triad. The blockchain triad is a theory based on the three main pillars of blockchain – scalability, security, and decentralization. The theory states that every public blockchain must have a weakness in one of these three pillars.
For example, the Bitcoin network, which is solid in terms of decentralization and security, has limited scalability. On the other hand, blockchain protocols that use the proof-of-stake consensus mechanism are more scalable and secure but not as decentralized as proof-of-work blockchains. The pros and cons of existing blockchains like Bitcoin and Ethereum led to the creation of Core.
The idea is to leverage the functionality that works in the consensus mechanism of Bitcoin and Ethereum. Then develop a better mechanism to answer the big question of the blockchain world – the blockchain triad.
Core’s mainnet was finally launched on January 14, 2023. Since the launch of the Core network, the protocol has attracted many users and investors. Three months after the mainnet launch, there were over 30 million transactions recorded with over 4 million unique wallet addresses.
