Graphite Network Launches L1 Blockchain with Entry Node Rewards
Graphite Network has launched its proprietary layer-1 (L1) blockchain, introducing an alternative designed to handle high transaction volumes with faster speeds and lower costs.
đ The moment has arrived! The Graphite Network Mainnet is officially live.
The first reputation-based blockchain that enables income generation through entry-point nodes.đ
đ https://t.co/GFjQLu7dP9
Join a platform where reputation meets innovation.
đč Reputation-based⊠pic.twitter.com/ZpGqNna95w
— Graphite Network (@GraphiteNetwork) December 11, 2024
Graphite aims to tackle the limitations of Ethereumâs mainnet, which currently handles 15-20 tps. The team behind the project claims that it can process up to 1,400 transactions per second (tps) and achieve confirmation times under 10 seconds.
Ethereum Scalability Issues
As of December 2024, Ethereum (ETH) had risen over 80% year-to-date, underperforming compared to other top cryptocurrencies like Bitcoin (BTC) and Solana (SOL), which gained 154% and 206%, respectively.
Ethereum performance in 2024 | Source: Coingecko
BTC continued to attract investor attention due to its stronger deflationary model and efficient store-of-value narrative. Solanaâs performance advantages made SOL a preferred asset among DeFi and NFT developers.
While Bitcoinâs fixed supply and meticulously regulated inflation controls positioned it as a beacon of security, stability, and predictability, Ethereumâs net issuance was curtailed by a decline in gas fee burns. CoinSharesâ latest analysis revealed that the proliferation of layer-2 networks like Arbitrum and Optimism had siphoned activity away from Ethereumâs primary layer-1 chain, reducing ETH supply burns to almost zero and diminishing the efficacy of Ethereumâs once-celebrated deflationary framework.
Moreover, competing L1 blockchains with faster transaction processing and lower fees, such as Solana, saw exponential growth in their user bases. The number of monthly active addresses on the Solana network reached 138 million in October, marking a 245% increase since August. Simultaneously, Solanaâs total value locked (TVL) surged, with year-to-date inflows capturing 2.7% of Ethereumâs TVL. Overall, the Ethereum network has experienced $6 billion in net outflows in 2024.
No. Adding some context (and data) changes the story regarding flows to Solana from other chainsđ
Over the last month, @base is #1 in terms of net flows ($463m). @solana is #2 with $197m of net flows. @SuiNetwork #3 with $120m.
If we zoom out to Year-to-Date, @arbitrum⊠https://t.co/FXd7kqJ2YD pic.twitter.com/mqqfRnGxpc
— Michael Nadeau | The DeFi Report (@JustDeauIt) October 30, 2024
Graphite Network Aims to Address ETH Scalability Issues
Graphite employs the Proof-of-Authority (PoA) consensus mechanism bolstered by the Polymer 2.0 algorithm. It leverages a network of authorized nodes for block validation. This method is believed to enhance efficiency by reducing the computational and energy demands characteristic of conventional Proof-of-Work systems.
Marko Ratkovic, the CTO at Graphite Network, told Cryptonews that their blockchain addresses common challenges to crypto adoption, including a lack of trust, fears of financial loss, and concerns about scams, ultimately increasing user confidence.
âGraphite marks a step forward by merging blockchain technology with a trust-based, inclusive financial model that enables both TradFi and Web3 users to participate securely,â he said.
Entry Node Rewards
Moreover, income generation is limited to validator nodes with substantial resources in other blockchains. Graphiteâs transaction architecture introduces a passive income opportunity for entry-point (transport) nodes. Graphite will reward transport node operators with 50% of fees passing through their nodes while allocating the remaining 50% to block sealers.
đ What are Entry-Point Nodes in #GraphiteNetwork? And why are they so important?
For the first time in blockchain history, Graphite Network allows entry-point nodes to earn income from transactions without requiring high computational resources!
Entry-point nodes are theâŠ
— Graphite Network (@GraphiteNetwork) December 13, 2024
Reputation-Based Blockchain
Another goal of Graphite is to bridge traditional finance (TradFi) with the core mechanics of Web3. Theyâve introduced the following features:
- Account activation: Before starting with Graphite, each user activates their account with a small fee, enforcing the blockchainâs âOne user, one accountâ policy to prevent multiple disposable wallets often associated with fraudulent activity.
- Multi-layered KYC verification: Graphite implements a tiered KYC system, starting with basic social media verification and expanding to higher levels in future releases. It gives users and businesses flexibility in managing their privacy without compromising transparency.
- KYC transaction filters: With Graphite, users can establish KYC transaction filters to block interactions with accounts that donât meet their verification standards. Meanwhile, businesses can create custom, reputation-driven smart contracts tailored to specific user profiles.
- Trust Score: Similar to a credit rating in TradFi, a Trust Score metric underpins all reputation-based interactions on Graphite. It shows each accountâs credibility, which relies on factors like KYC level, transaction history, etc.
In addition to that, Graphite upholds privacy by using Zero Knowledge Proof technology for data verification and conducting all KYC processes off-chain. This approach ensures that a userâs sensitive data is never published on the blockchain, with only the final KYC level of a given wallet shared with Graphite.
Moreover, the Graphite network has tagged addresses, which allow users to label wallets linked to specific entities. This functionality ensures proper fund usage while detecting any misuse on the blockchain. Graphiteâs smart contracts can automatically block transactions from that source when the address is flagged as suspicious.
Source: cryptonews.com
