Read the human node project Humanode in one article

This article comes from Humanode, the original author: Humanode Core, compiled by Odaily translator Katie Ku.

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Introduction to Humanode

According to news, Humanode has recently completed a $2 million seed round of financing, led by Republic Capital, Tribe Capital, Avalanche, Wintermute, Shima Capital, Genblock Capital, GravityX Capital, AU21 and StaFi and other institutions, as well as individual investors such as Heslin from Supraoracles And Polygon co-founders Jaynti and Sandeep participated in the investment.

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Background of the project

Background of the project

One of the most difficult things in the world is to face the uncertainty of something new, to find a breakthrough answer, to break the rules and change everything. Humanode is different from other blockchain projects and cryptocurrencies.

The entire philosophy behind Humanode was conceived out of some simple but fundamental questions plaguing the entire crypto world and decentralized finance. For example, is there a better way to run a consensus mechanism that doesn't depend on using expensive electricity and isn't based on a system where money is the power? How do we protect privacy? How to build a global, truly decentralized and sustainable financial system? How do we deal with high and volatile transaction fees? How do we build a system of governance that is transparent, sustainable, and truly egalitarian, while fighting populism and voter apathy?

Today, we want to briefly answer some frequently asked questions, hoping to help all readers who are new to Humanode, or even crypto or decentralized projects.

Question 1: What does "consensus mechanism" mean?

Unlike most nationalized financial systems that use a central bank or government-controlled central financial system, a decentralized financial system that runs on a blockchain does not run on a central computer system controlled by a government or group of people. Therefore, to ensure that the information in the ledger is correct, and that the computers agree on what is being recorded, a blockchain system uses a "consensus mechanism."

Technically speaking, a consensus mechanism is a fault-tolerant mechanism used in blockchains to reach agreement among distributed nodes on a single state of the network. In other words, it is a process that ensures that at least 51% of the computers/nodes in the blockchain network agree that what is written in the ledger (in the form of blocks) is correct, valid, and free from intentional (or unintentional) wrong system. This includes a mechanism that will punish those who try to tamper with the system, and a security mechanism that reduces the probability of controlling the system by 51%.

The two most common mechanisms are Proof of Work (PoW), which Bitcoin operates on, and Proof of Stake (PoS), which Ethereum is moving towards.

Question 2: Is there any difference between PoW and PoS?

In a proof-of-work network, "miners" compete to create new blocks filled with processed transactions. They use pools of high-speed computers to calculate an equation (or "mathematical puzzle too difficult for most human brains"), and the first node to answer the question correctly will be the winner. The winner shares the new block with the rest of the network and earns newly generated cryptocurrency. This node uses electricity and computing power to answer this question, which is the "proof of work". Of course, in order to gain 51% control of the system, you need full control over 51% of the computers, which is not worth it in most cases. The only problem here is that the bigger the network and the faster the computers, the more competition there is for new coins to be issued and the more electricity is used.

For Bitcoin, according to a study by MoneySuperMarket, the electricity consumed in one transaction is said to be 1173 kilowatt-hours (K/Wh), which is roughly equivalent to $175. That's roughly equivalent to 1.5 to 3 months' worth of electricity bills for an average household in the US or Europe. And it's just a deal. There are more than 105 billion bitcoin transactions per year, which means 123 terawatt hours (T/Wh), which means that bitcoin uses more energy than 185 countries, which is equivalent to the annual energy consumption of Norway. This is just the power consumed to keep the network running. Considering that half of electricity comes from coal-fired power plants, the environmental impact of mining is devastating.

On the one hand, proof-of-stake-based networks don't fight over who solves the equation first, so they consume about 90% to 99% of the energy. Instead, users "stake" their coins for the chance to create blocks and earn commissions. If you own 30% of the staked currency in the system, you have a 30% chance of earning commissions. If you own 0.0001% of your staked currency, your chance of getting a return is also 0.0001%. Your voting power in the system is also equal to the percentage of currency you own or represent. In other words, the more money you have, the more rewards you get and the louder your voice, which means most users have no choice but to follow the powerful rich who keep getting richer. person (or group). On the other hand, you need to hold 51% of the currency in the system to gain full control, which is not realistic in most cases.

Question 3: What technology is Humanode based on?

Humanode decided to approach the issues of consensus, staking, and block creation from a different angle. The infrastructure of the Humanode network is based on human biometrics. Unlike PoW and PoS, Humanode utilizes a combination of proof of uniqueness and proof of existence. Combined with blockchain, it creates the first-ever human-based digital verification layer. Human nodes are created through crypto-biometric authentication, a method that combines cryptographically secure matching and liveness detection mechanisms to verify the uniqueness and existence of real human bodies. Every living person can create a node, and each node has a voting right in the system. The system doesn't care how much money you have, where you live, who you are, your race, creed, gender, class, social status, nationality, or what you look like. What the system cares about is whether you are a unique person, whether you are registered in the system, whether you are alive. Your vote and my vote have the same power.

This also means that in order to get 51% of the votes in the system, you would have to trace (or trace) 51% of the people participating in Humanode globally, basically getting them to vote within a given time frame is not realistic. If you are a malicious actor and try to trick the system, your biometrics are blacklisted and you will be punished according to the severity of the crime. In the worst case, you will lose all access to the network.

As for the energy consumption of the network? Even if the network is running with 100,000 full-time human nodes (as of March 2022, the current testnet is running on 3,000 nodes) conducting uninterrupted transactions (we just took a small example), only about 0.058 terawatt hours (T/Wh), which means that only 0.065% of the electricity required to run Bitcoin is required.

Question 4: But how does the "mining" or "validation" process work? How to make money?

There are many different answers to these questions. One is that miners do not compete for the right to write blocks, nor do they compete to earn newly minted cryptocurrency or commissions. The monetary algorithm is based on what we call Fath, a monetary policy and algorithm that targets real value growth and proportional emissions. Fath essentially controls growth-based emissions. In simple terms, the system basically calculates based on two years of data comparison. If there is a 20% increase, from one year to the next, all token holders will get an additional 20% of tokens based on how much you own. If there is a negative growth, say -10% growth, then 10% of the coins will be deducted from each user and burned evenly (don't worry, if you own 1% of the tokens in the system, after the burn you will still own 1% Token). The system ensures that the quantity and value of the currency meet market demand.

As for "commissions", all transaction fees in the network are shared equally between validator nodes (assuming your nodes are running concurrently), and all nodes in the network share the rewards for the services provided.

Question 5: What do you mean by providing a service?

The human-based digital verification layer developed by Humanode is Layer 1 technology (this layer is used as the foundation, and is the basic layer under the logical data structure of other higher-level network functions). In other words, this is the infrastructure that everything is built upon, is compatible with Ethereum, and includes an EVM stack that allows it to run Solidity smart contracts and use existing developer tools.This means that the Humanode network will be able to connect and provide private biometric processing, and provide Sybil attack resistance to dApps based on other EVM compatible chains. We have worked closely with partners such as the AIKON blockchain company to provide users with the option to use Humanode biometric authentication as a login option in addition to Google or Facebook accounts.

Across the network, and through partnerships, there are countless service use cases that leverage or use Humanode's cryptographic biometric solutions. Any profit earned from services provided or built within the system will be shared among human nodes.

Question 6: How secure is this "Auditable Anonymous Cryptographic Biometric ID" solution? Is my privacy protected?From the beginning, the challenge has been to ensure the security, privacy, and robustness against Sybil attacks so that human biometrics (the most private form of private data) can be used as a key to a public permissionless financial system. Staking, replacing capital-based demands.

We use encrypted biometrics. Encrypted biometrics are based on a combination of various technologies and exist at the intersection of mathematics, information security, network security, anti-Sybil attacks, biometrics, liveness detection, zero-knowledge proof (ZKP) technology, encryption and blockchain technology .In a nutshell, the system encrypts data from biometrics, then decrypts and matches them in a secure enclave.

This highly encrypted data is only used to see if the user is registered, and if the user is registered, to grant them access to various services related to the user. Basically you are your own password, unless someone can hijack your brain or consciousness, it is very difficult for a third party to "get your mind".

Question 7: What will governance and voting look like? How can I become a human node if I want to develop a system that uses this technology? Is there a grant system?