Major achievement for IOST
On 20th December, 2018 in San Francisco, the $40M VC-backed IOST announced their node election process while releasing their final testnet (mainnet in Q1 2019): two big milestones in a bear market. Backed by Sequoia China and listed on 10+ major exchanges, IOST wants to execute the best blockchain — replacing ETH with better speed and scale. They’ve designed major improvements to DPoS while avoiding the power consolidation that effectively ruined EOS. By aligning incentives so that voters are motivated to choose legitimate candidates, IOST has the potential to emerge as one of the true challengers to ETH in 2019.
Terry Wang, CTO of IOST said, “To increase the number of nodes and speed of the IOST network, we’re inviting organizations and individuals to apply to be Servi Node candidates. projects like EOS have suffered because a small number of ‘super nodes’ control the network. We’ve designed a unique voting system that combats the centralization of power, where the rich get richer. The election of our nodes is based on our proprietary Proof of Believability (PoB) mechanism. This means hundreds of different nodes may be selected to participate in the committee every day. This results in a highly decentralized version of DPoS. Instead of a fixed, small number of ‘super nodes’ who control the network, hundreds, if not thousands of different nodes on the IOST network will be producing and validating blocks. The system becomes even more dynamic as a result of voting changes.”
A host of interesting features
Key features of the system include that the committee rotates once every 10 minutes in the IOST network. Due to the Servi clearing mechanism, hundreds of different nodes may be selected to participate in the committee every day. While this design ensures decentralization of the block production process and fairness throughout the network, it does not compromise the benefits of a DPoS system that enables high scalability and throughput speeds. This next generation consensus mechanism solves the biggest challenges of current blockchain systems with regards to centralization and power consumption.
Benefits of becoming a node candidate include Servi node rewards. Servi nodes get a share of the yearly IOST reward pool. Invitation rewards. After becoming a candidate, you may get 30% of fees incurred by the users you invite into the network. This includes account creation, iRAM, and iGAS. Estimated cost of running a node is around $10K USD per year.