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Credits: The New Blockchain Platform for Miners

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On August 27, Credits Blockchain Platform announced the start date for the partial swap. A partial swap involves the migration of tokens from the Ethereum protocol to the Credits protocol, which will allow the company’s token holders to launch the Credits platform software and become full-scale participants of the network.

The swap is scheduled for September 5th. The swap will be carried out from a minimum of 50,000 tokens which is the required number of coins to join the network consensus and to take advantage of the opportunity of receiving rewards for transaction processing. 

By September 2, 2019, Credits has already received over 200 applications, which suggests that over 200 nodes will be joining the network in the near future.

Credits Consensus Algorithm

Node operation is the basis for the majority of blockchains working on consensus algorithms with full decentralization. By delegating the transaction validation process to node operators and establishing clear rules of commission charges, node-based Credits blockchain allow their network operators to earn passive income without sacrificing high energy costs associated with coin mining.

The Credits Consensus Algorithm is Proof-of-Agreement (PoA). It incorporates features that are characteristic of DPoS (Delegated Proof-of-Stake) and BFT (Byzantine Fault Tolerance) and has 3 stages:

  • Selection of nodes for decision-making. A necessary amount of nodes — a minimum of 4 nodes and a maximum of 201 nodes with currently valid states selected for consensus via the algorithm of a random selection of nodes from the received hashes of all network nodes at current states after the elimination of nodes with insufficient staking amounts. 
  • Voting on the current pool of transactions and making a decision about transactions to be added in the block for subsequent addition to the storage.
  • Adding the block to the storage of trusted nodes and its subsequent distribution throughout the network.

Within a network, every node has the same chance to become a validator and to get rewards for processed operations.

Staking on Credits Platform

Staking, in terms of Credits protocol, requires storing 50,000 Credits Coins on the user’s wallet. This is the required number of coins for a node to participate in a consensus mechanism and get rewards. The amount of stake doesn’t affect the frequency of node participation in the consensus protocol.

Rewards are formed on the basis of fees collected as a result of the following operations:

  • Transfer of Credits coins between the platform participants;
  • Deployment and execution of a smart contract;
  • Transfer of Credits blockchain-based tokens;
  • Purchase of information from third-party sources for services within the system.

To date, the daily number of transactions on the platform has exceeded the 100,000 mark and is continuing to grow due to the increasing number of dApps based on Credits protocol. Today, there are more than 20 dApps that generate transactions within the network daily. The average reward for each node operating participant of the network varies from 500 to 5000 Credits (CS) coins per month.

Prospects

The launch of the partial swap is a clear indication that the full public swap of the company tokens is drawing near. The open public swap will lead to further expansion of the company’s infrastructure by attracting partners seeking to take advantage of the company’s product offering.

The increasing adoption and application of Credits software solutions in real business models is certain to increase the number of network transactions. The rise in Credits’ network activity will undoubtedly have a direct impact on the commissions being charged per transaction on the Credits blockchain, thus giving node operators the opportunity to increase their earnings.

About the Author: The author of this article is Martin Goldmann. 
Martin is a freelance writer with a background in journalism and publishing. 
He is a former managing editor of a cryptocurrency news outlet. He has been 
involved in the cryptocurrency industry for over two years and fully believes 
in its capacity to change the world.

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