[The Governance of the TRON Ecosystem]- Crypto Academy / S4W7- Homework Post for professor @yohan2on

in hive-108451 •  2 months ago  (edited)

Hello everyone, we're in the 7th week of Season 4, and this week we learned about the Tron Ecosystem from Professor @yohan2on. This will be my assignment post.


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Q1. Who are Super Representatives, SR partners, and SR candidates? (The Governance of the TRON Ecosystem)


The Tron Ecosystem uses the Delegated Proof of Stake (DPoS) consensus Mechanism in which there are elected delegates who are in charge of the transaction validation process and the creation of blocks. These witnesses are chosen on a voting basis by the users. But can every user have a vote in this election? NO. Only the users who have staked their Tron in the ecosystem can vote. The chosen delegates are known as the
Super Representatives which account from the 1st Position to 27th. The next in line are Super Representative Partners which are from the 28th to 127th and lastly the Super Representative Candidates


Super Representative (SR)

On the Tron Ecosystem, Super Representatives are the top 27 users which get elected by the other users on the blockchain. The Super Representatives are in charge of the validation of transactions, creating blocks, etc.


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Tronscan


Now, in this picture above is the list of the Super Representatives. Whenever any of these super representatives produce a block, they will be rewarded 16 TRX. A question arises what is the criteria that which representative will produce a block? All the 27 SRs produce a block in turns every 3 seconds.

Alongside the individual 16 TRX reward for producing a block, all the 27 SRs also get a share from the 160 TRX on every block produced. This means that the Super Representative who is creating a block will get a reward of 16 TRX and the Super Representative who is not producing a block at that time will also get a share of the reward from the 160 TRX. The latter reward is known as the Votes Reward

Rewards Breakdown

  • 16 TRX per Block (28,800 blocks in 1 day as each block is produced every 3 seconds)
  • 16 x 28,800 = 460,800 (TRX/day)
  • Above is the complete TRX reward of a day. Now for a single Super Representative:

  • Total Rewards = (460,800/27) x 20% TRX

  • where;
  • 20% TRX is the brokerage ratio for the Super Representatives.

Super Representative Partners

The Super Representative Partners are next in line to the Super Representatives. They are from number 28th to 127


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tronscan


When the top 27 Super Representatives have been voted on the Blockchain, the remaining 100 are automatically chosen as the SR Partners.

The Rewards for the SR Partners are the same as that of the SRs but there is one exception. The SR Partners do not get any block rewards as they do not create blocks.


Super Representatives Candidates

The Super Representative Candidates are the users from 128-147th position. They are also voted by the users on the Tron Blockchain who have staked their coins.


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tronscan


The voting is done every 6 hours and after the selection of the Super Representatives and Super Representative Partners respectively, the remaining are the Candidates till the next voting period.

Rewards

  • A total of 115,200 TRX are shared between the Super Representatives Candidates

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Q2. What’s the difference between DPOS and POS consensus mechanisms?


PROOF OF STAKE

The Proof of Stake Consensus Algorithm is an alternative to the Proof Of Work algorithm and it consumes comparatively less energy.

In the Proof of Stake Consensus Algorithm, the miner gets the authority of mining and validating transactions established on the fact that how many coins they have staked. So this means the more asset a user stakes, the more power/authority he gets in mining and validating transactions.

The users stake their coins and on the basis of that staking, they get the percentage of authority. For example, if user A has staked 20% of his tokens and User B has staked 50% of his tokens on the Blockchain respectively. Then the User A will have the opportunity of mining 20% of blocks while User B will have the opportunity of Mining 50% of the blocks.

  • Examples of POS

  • Blockchains like Cardano, Polkadot, etc use the POS consensus Algorithm.


DELEGATED PROOF OF STAKE

Delegated Proof of stake (DPoS) is the alternative version of Proof of stake in which a miner carries out their token balance as votes. The voting power in the DPoS is directly proportional to the number of tokens held.


The validation of the transactions on the blockchain network is done by the delegates who have been voted by the users who have the tokens of that network. Now a question arises how a delegate is chosen? The delegates are chosen by the users. They are voted by the users and as mentioned above the voting power of the user increases if they've more coins held on the network.
It is a complete democratic option of reaching a consensus.

  • Example: EOS, STEEM, etc

DIFFERENCES BETWEEN POS AND DPOS

PoSDPoS
Stands of Proof of StakeStands for Delegated Proof of Stake
Security is through Collateral Stakingaddition of Collateral Staking, Delegation, and Voting mechanisms.
Delegates are selected randomly on the basis of their stakesdelegates are elected by votes from the users.
Slow validation speedFast validation speed
All the coin holders can participate in validationonly the delegates are chosen to validate a transaction
Any changes brought could fork the PoSThe delegates put present the changes to the protocol and cannot implement them until and unless they are approved by the users.
Comparatively high energy consumed than DPoSLess energy Consumed comparative to POS

ADVANTAGES OF POS

  • Users who have Staked coins, receive staking rewards from the Blockchain network
  • Can be carried out in your wallet. Which means you can stake coins in your wallet to get rewards.
  • Environmental friendly.
  • Does not need high energy consumption.
  • effective method in the blockchain networks which works in the favor of both; the users and the network.

DISADVANTAGES OF POS


  • POS is vulnerable to the 51% attack as if someone accumulates 51% of the token he can launch an attack.
  • the true meaning of decentralization is lost as few users can have control over a large number of coins by hoarding it

ADVANTAGES OF DPoS


  • Comparatively much environmental friendly than Proof of Stake
  • it is way faster than the POS as the block producers can validate transactions in seconds.
  • true definition of democracy as the Delegates are chosen through voting
  • consumes much less energy
  • quality control is superb in the DPoS as the delegates can be voted out if they are not up to the notch.

DISADVANTAGES OF DPoS


  • there are few selected witnesses in the DPoS which take it towards Centralizon thus losing the real essence of Decentralization.
  • need the witnesses to be in their best form as even slight mistakes from them can lead to a system dysfunctional system.

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Q3. Write a Step by Step tutorial showcasing how to stake/freeze TRX and vote for SRs


In this question, I'll be demonstrating how to freeze my TRX and how to vote for SRs. Let us begin.


  • open your Tronlink wallet and on the homepage, you will see many options. Such as the Vote, Freeze, Send Recieve, etc

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  • Now, for voting for the SRs we need to freeze our TRX first, as we learned in this lesson. So I will click on Freeze

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  • after I clicked on freeze, It opened a new tab, and on that tab, you see I already have 10 voting rights. This means I have already staked 10 TRX before, as 1 frozen TRX gives 1 Voting Right.

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  • I will now freeze 10 more TRX and this will give me 10 more voting rights. Let's see.

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  • In this screenshot, you can see that when I wrote 10 TRX in the freeze section, It showed that I will get 10 voting rights as well as energy. You can switch to bandwidth instead of Energy if you like (as shown in the screenshot)

  • now I will have to confirm the transaction and enter my password to proceed.

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  • After the confirmation of the transaction the voting rights were added to my resources.

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I had 10 voting rights before and now after the addition of 10 voting rights, I have a total of 20 voting rights


Voting for Super Representatives


  • For voting, we will use the Tronlink Pro app and on the main screen, you will see a vote option as shown in the screenshot below.

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  • When you click on it, a list of Super Representatives will open.

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  • Choose whichever Super Representative you want. In my case I chose, Poloniex.

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  • I entered my 10 votes for Poloniex which has an estimated yield of 6.56%

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  • It once again asked for my password, and when I entered my password, the voting was done.

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  • To confirm whether my vote has been done or not, I opened the Vote section again, and in there on My votes I checked that my voting was done.

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  • After voting 10, I checked my voting rights and there were 10 remaining as 10 were voted to Poloniex.

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CONCLUSION

The Tron Ecosystem has really excelled with the Delegated Proof of Stake consensus Algorithm, where the Super Representatives, Partners, and Candidates are selected through proper voting. The SRs have to validate and mine the blocks for which they get rewards as well.

This is an interesting lecture professor @yohan2on as I got to learn a lot about the Tron Ecosystem. I enjoyed making this article, hope you had a good read as well
Thank you.


Ps: all screenshots are taken from tronscan and Tronlink Pro Application while the grammar has been double-checked from grammarly


Regards,
@huzaifanaveed1

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#club5050 😀

Hi @huzifanaveed1

Thanks for participating in the Steemit Crypto Academy
Feedback

Rating criteriaScores
Quality of presentation1.5/1.5
Originality2/2
Compliance with topic1.5/1.5
Clarity of language2/2
Quality of analysis2/2
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Grand total10

Total| 10/10

This is excellent work. Thanks for taking the time to learn about the governance of the Tron ecosystem.

Thank you professor for your review.