The crypto world is brimming with Proof-of-Work and Proof-of-Stake projects, but in this post I will be talking about the unique Proof-of-Person project called Idena.
Before you start to complain that you do not want to compromise on anonymity, let me clarify that this Proof-of-Person protocol does not involve any KYC or collection of any personal data. You just need to verify that you are a human and not a bot by passing the Turing test. In case you fail the Turing test you probably have bigger issues to resolve as perhaps your monotonous job is turning you into a machine.
What is the Crypto Paradox?
Crypto Paradox is the drastic contradiction between what was the intent behind the creation of Bitcoin & crypto in general, and what is the current reality of most blockchain projects.
The anonymous person or group called Satoshi Nakamoto came up with the concept of crypto and blockchain as they were disillusioned by the rampant greed and corruption of our financial institutions which had caused widespread misery after the market crash of 2008. What makes the economic recessions worse is that the rich are not affected much by this, but the majority are left scrambling for survival.
The core objective of blockchain was to create a system which could not be corrupted by the selfish motives of a few individuals and it creates an equitable world where everyone has equal access to money irrespective of their race, class, country of origin etc.
In 2020 the ground reality of crypto is completely different from the core objectives of blockchain. Rather than create a fair and equal financial ecosystem the crypto world is getting more and more centralized. The whales are accumulating more and more wealth and the retail investors are being pushed out thanks to the rampant price manipulations. With each new innovation in crypto it seems to be getting worse. If we consider the most recent case of DeFI projects we can clearly see that the whales have pushed the ETH fees so high that the average retail investor simply can not make a profit by participating in DeFI.
How can Idena Fix this Paradox?
Idena has incorporated Fair Voting mechanism in their protocol by ensuring one person one vote system. Their blockchain assign a unique cryptoidentity to each participant irrespective of his location or how much wealth he holds. One person one vote may sound obvious to ensure a true democratic system but on close observation you will notice it is not being followed in majority of crypto projects. Look at Proof of Stake and DeFI projects, their governance assigns votes linked to the tokens you hold or stake. This gives an unfair advantage to the whale hoarding large amount of tokens. They can pass whatever change to the system which benefits them personally even if it is opposed by majority of participants holding few number of tokens.
While ensuring equal rights to every participant Idena maintains anonymity and does not harvest any personal data. To prove you are human you need to clear a Turing test to demonstrate common sense which is essential to avoid the system getting flooded by bots.
What is Flip?
Flip is very similar to CAPTCHA where you are used to select a set of pictures matching a certain criterion. The fact that Google used CAPTCHA as a means to extract free labor from users to improve google maps is probably best saved for another post.
Flip presents the same set of images in two parallel sequences where one of the sequence will indicate a logical storyline and the other would have no logical flow. Using common sense you can easily pick the one which has a story and this simple task is currently impossible for robots to crack.
Idena even organized a Flip challenge for AI experts to create a Bot which can beat flip with more than 70% accuracy and so far the prize remains unclaimed.
How will Idena reward the Participating Users?
Idena tokenomics involves a structure where advertisers need to burn a set tokens to gain visibility to the system users. The people are in turn compensated for their attention by these tokens which they can sell or exchange so the cycle can keep running.
Idena generates more than 50,000 DNA coins everyday of which 25,000 are distributed as mining rewards and 25,000 are given out as validation reward.
The Way Forward for Idena!
Idena is one the most exciting crypto project I have come across this year. What makes it special is it’s focus to create an equal world where everyone has equal rights and equal access to money, Satoshi would be super proud of this initiative.
Though this looks immaculate on paper, the implementation of the roadmap will be the real test. They have done the hard part already by laying the foundation and their token is already listed on Hotbit exchange with decent liquidity. As of writing this post they already have more than 4,500 validated nodes running. I would be closely monitoring this project over the coming months to see how it shapes up and I wish them all the luck for successfully scaling up this noble initiative.
If you are interested to learn more about the project you can access the following links:
Idena official site- https://www.idena.io/
Idena Medium page- https://medium.com/@idena.network
Cheers,
SamBTC
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Good one