- April 20, 2021
- Posted by: admin
- Category: Decentralized
Community Nodes (Revolution in Staking and Yield Farming)
The Network Effect: Increasing Value On-Chain
Originating in the 20th century through Theodore Vail. The Metcalfe law popularized by the creator of the Ethernet. Mentions the value of a telecommunication network is directly proportional to the square of the number of connected users to the system.
The network effect a demand-side phenomenon by which value or utility is added by each new user to the network. This positive result is achieved through more users entering the network.
An increase in the value of all users is called the “total effect” and the motivation of non-users referred to as the marginal effect.
Examples of Direct network effects can be seen with social media networks, the effects each additional user adds to the network. The content which powers the network’s value. A positive feedback loop is added to each and new adoption.
The internet is a great example of the network effect with each additional webpage adding value through each user. Indirect users such as search engines adding value to the overall network (indirect effect).
Many companies and organizations fail to achieve critical mass in the networking effect.
This is the number of users the network requires to become self-sufficient and achieve market dominance. The adoption of Bitcoin and crypto assets a large-scale global network effect. With each user adding resources and networking power into the infrastructure.
Today we can see the significance of the network effect and see how it applies to cryptocurrencies and the telecommunication industry which GS Telecom aims to revolutionize.
Masternodes are powerful servers backed by collateral held in G999 or other crypto and are designed to provide advanced services and governance on the blockchain. They host full copies of the blockchain and provide a unique second layer of services to the network, facilitating advanced functions such as InstantSend, PrivateSend, and usernames on the blockchain.
- Yield Farming
Lending your funds to others through the magic of computer programs called smart contracts. In return for your service, you earn fees in the form of crypto.
- Decentralized Finance
A form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments.
- Staking Pools (Community Nodes)
A staking pool allows multiple stakeholders (or bagholders) to combine their computational resources as a way to increase their chances of being rewarded.
5G Complimenting Blockchain Technology
Fifth-generation technology, a new standard for data transmission within unique frequency bands. With the move from dedicated equipment to general servers, the application of a high-speed, low latency, high throughput seems almost perfect for blockchain technology.
A fully connected world demanding high-speed secure data processing and payment.
Blockchain technology has been the driving force behind blockchain technology and cryptocurrencies.
The expansion of a 5G mobile network communication infrastructure will accelerate the development of blockchain technology and its adaption in the real world.
Industries such as the internet of things, the internet of vehicles, massive machine learning all require data processing and validation which could be achieved through blockchain technology and its consensus protocols.
Now a vast world exists of interconnected networks secured by collective users. This enables an infrastructure on which to build decentralized technologies. With the speed of 5G infrastructure, the acceleration towards self-sufficiency economies will be growing.
The increased scale and intricacy of blockchain technology will require the infrastructure of 5G to enhance its transfer process. Different sectors of the economy will be able to use the advantages of blockchain technology without the need to sacrifice speed.
Network connected for change
Blockchain peer-to-peer direct transactions
Collective Holding Incentive – More Security