Currently ranked 69th on www.coinmarketcap.com, Nebulas has remained under the radar for many investors. With their mainnet launching at the end of March, I have a feeling that it’s soon to be their turn in the spotlight.
The founder of Nebulas co-founded NEO and also has vast experience with companies such as Google, Alibaba and various blockchain related companies. The team, now 15 strong, have developed their testnet in less than 1 year and have great ambitions for the year ahead.
So, what is Nebulas?
Often referred to as the ‘google’ of cryptocurrencies, Nebulas aims to create a search framework for smart contracts, distributed applications (dapps) and digital assets on the blockchain. The framework has various methodologies to determine value and thereby rank accordingly.
This measures the frequency and the magnitude of transactions. Large liquidity indicates economic development and popularity therefore this will be taken into consideration in their ranking algorithm.
Network and user growth is another key indicator to rank value. As blockchain projects grow in popularity, their liquidity will increase as well as their propagation and therefore place them higher in the ranking algorithm.
Nebulas aims to not only rank assets on their ecosystem but integrate all blockchain ecosystems to work in conjunction with each other. With many projects like ETH, NEO and EOS offering a platform to build decentralised applications and smart contracts, Nebulas will allow cross chain integration to benefit the mass public.
Ok, so why would developers build applications / smart contracts on Nebulas instead of ETH?
Firstly, developers can build dapps and smart contracts on the Nebulas blockchain using already existing coding language — lowering the entrance barrier for developers.
Secondly, developers are rewarded with the NAS token if their project is valuable to the ecosystem. This incentive, along with the relative ease of development gives many talented developers a reason to build on the Nebulas platform.
Proof of Devotion (POD)
Proof of work and Proof of Stake are two of the most common consensus algorithms to date, Nebulas has used a combination of POS and POI (proof of importance) to develop a new consensus algorithm called Proof of Devotion (POD).
One of the arguments against proof of stake is that the probability of reward is based on the capital holdings. The worry that they have is that ‘PoS is more likely to gain power to control the ecology and form large group monopoly, possibly damaging the interests of the ecology contributors’
In light of these concerns, Instead of weighting probability on stake holdings (POS) or computing power (POW), POD weights probability based on influence in the ecology however the key metric used to differ group monopoly is the equal chance to participate and be rewarded in NAS.
I really like the idea of proof of devotion, as projects which rank highly on the search engine (based on the factors mentioned at the start) will have equal opportunity to maintain the blockchain and be rewarded not only due to their contribution of value to the ecosystem but also with NAS tokens for book keeping. It is in the projects best interest for the NAS ecosystem to thrive, as they will be financially rewarded.
The key to the success of NAS, like most blockchain projects, is mass adoption. Developers need to create enough value on their ecosystem to attract the mass public to participate in the ecosystem.
Thanks for reading this article,