Block producers have always been the backbone of Cryptocurrency projects. People believe that they make or break a project. Block producers are the people that help in the validation, recording and broadcasting of transactions on a Blockchain. For those that are new to Crypto, the Blockchain is a continuous chain of transactions and cryptographic security information which have been validated by computer nodes run by block producers on a network. Since block producers are the ones that verify that transactions are true, they are a significant part of a project. The way people view them affects their belief in a project. Since the Cryptospace is about a trustless, decentralized systems, the structure of the block producer can get pretty tricky.
One of the reasons Bitcoin took off was that Satoshi Nakamato, the inventor or inventors of Bitcoin was/were able to solve the problem of double spending by using cryptographic security information recording on the blockchain and using incentives called block rewards in the form of Bitcoin to keep block producers/miners from being malicious and so far, Bitcoin has proven that it can work.
When EOS launched, the requirement for a person to be a block producer was based mostly on votes. There were no minimum requirements for the equipment or server that the block producer used for validating transactions. A block producer cannot be replaced by a standby until after 3 hrs of not producing blocks. Since the standby block producers were paid considerably less than the main block producers, the incentive to own and maintain the right equipment and servers was not factored in. If 6 or more block producers fail to produce blocks out of the 21 block producers, the network will be paused temporarily causing confusion and chaos until the standby producers are able to step in. If the standby producers were not ready, that will make the situation worse. To get a handle on this, certain people in the EOS community have taken it upon themselves to call out the block producers that are not performing up to par as seen in the tweet below
As anyone in the space has seen, people with a lot of EOS tokens called whales were not only able to vote themselves in as block producers, but also keep their favorite people from being voted out even though that they were not performing well as block producers. EOS is working on several proposals to try to fix some of these issues. So what is Telos proposing from the launch of the Telos network?
Telos is planning to equalize pay among block producers and standbys. All BPs will be paid the same amount and all standbys will be paid 50% the BP rate. Standbys will rotate into block production for a short time on a regular basis (every 3-7 days) to earn their pay and prove that they are ready to produce. Active BPs that fail to produce 180 blocks in a row will be temporarily replaced by a standby BP (after 30 minutes vs. 3 hours under Eos rules). This model will reduce network pauses due to 6 or more BPs becoming inactive. Active BPs and standby BPs are penalized for missed blocks. Active BPs and standby BPs will have a clear minimum requirement in terms of information disclosure, practices, and hardware/connectivity – any that do not meet minimum will be prevented from serving regardless of voting. Statistics on BP/Stand-by performance will be published to empower voters towards electing more reliable BPs.
With these solutions, Telos will be one of the most resilient networks bringing great value to users and DApp developers!
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