VeriBlock is the first blockchain that allows any blockchain to have the same level of security as Bitcoin’s Proof-of-Work in a decentralized, trustless, transparent and permissionless (“DTTP”) way.
This layer acts as a fully DTTP adapter/aggregator between Bitcoin and other blockchains.
Veriblock launched the mainnet of its blockchain on 25 March.
VeriBlock’s basic concept is proof-of-proof (PoP). It is the additional consensus mechanism that blockchains use to integrate with VeriBlock.
VeriBlock lets a blockchain piggyback off the enormous computing power already directed at the Bitcoin network.
VeriBlock embeds data into the bitcoin blockchain using OP_RETURN. This can be done for a variety of purposes, from verifying the existence of data at one point in time to issuing new securities. All of this on the Bitcoin blockchain
According to Forbes the former Bitcoin Core developer Jeff Garzik is perhaps the most noteworthy contributor to VeriBlock.
The Proof-of-Proof Consensus algorithm
Proof-of-Proof is a new consensus protocol that allows blockchains to inherit security features from other blockchains. This creates an ecosystem in which security comes first on well-established blockchains such as Bitcoin, and then extends across other blockchains.
This ecosystem allows for indirect scaling of Bitcoin, by using it as the security mechanism in purpose-built chains.
What is Veriblock mining?
VeriBlock is mined two ways: by PoW and PoP. PoW miners create the blocks and provide the blockchain with an intermediate consensus. They also act as a first-line of defense for blockchains that inherit security from VeriBlock.
The PoP miners must publish a representation of VeriBlock’s current state (and, by extension, the blockchains that are secured by VeriBlock), to Bitcoin using DTTP.
vBlake, the Proof-of-Work hashing algorithms used on the VeriBlock Blockchain. This is a modified version of BLAKE2b that has been optimized to be used as a PoW.
PoP introduces a novel type of miner that performs periodic publication of a blockchain’s state on another blockchain. The publications can be referred to in case of potential blockchain reorganization.
PoP miners serve as the communication/transactional bridges between a SI blockchain and a SP blockchain. PoP miners can publish the latest blockchain data to the SP Blockchain as often as desired.
Veriblock Token – VBK
VeriBlock’s blockchain is a proof aggregation system, while its VeriBlock coin allows for payment of the VeriBlock PoW or PoP miner decentralized in a manner controlled by the VeriBlock protocol.
VeriBlock is a mechanism for price discovery that allows efficient distribution of scarce resources such as proof. This in turn allows all blockchains to inherit Bitcoin’s PoW security.
VeriBlock Blockchain allows for rapid adoption, wide-spread and secure PoP security in other blockchains. It enables the following:
- Spend double on attack prevention
- Protect against 51% sustained attacks
- Early detection of an attack
Justin Fisher, CEO: Justin Fisher has over 25 years of experience in Internet, web hosting, financial information and telecommunications. He also founded the Brevo Company, which provides Internet-based information transmission.
Flip Filipowski, Chairman: Graduated from Harvard University’s World No. He is a seasoned entrepreneur with more than forty years of experience in managing and founding companies. One of these was Fuel 50, one of the biggest startups in the technology industry. He currently serves as the chairman and founder of Fluree, a Blockchain Database and decentralized application.
Technology Expert Jeff Garzik: Has a bachelor’s degree in Computer Science, from the Georgia Institute of Technology. His experience in software and web programming spans over 14 years at companies like CNN, Red Hat. He spent two years at Bitpay as a Bitcoin Analyst.
Maxwell Sanchez, CTO: Maxwell Sanchez has more than five years of experience in programming software at Curecoin.
VeriBlock – Does it create problems for Bitcoin?
According to BitcoinMagazine.com estimates, the percentage of Bitcoin blockspace that VeriBlock uses can range anywhere from 20 to 45 percent. VeriBlock’s impact on the Bitcoin network may be a concern.
Sanchez stated that “this was widely reported just before VeriBlock’s testnet phase-out.” Sanchez said: “However the effects of the proof-of-proof on the Bitcoin Network are very small…. The amount of space VeriBlock takes up in Bitcoin will decrease as the demand for bitcoin increases, and the users bid higher fees.
Sanchez noted also that VeriBlock’s solution provides security, regardless of the Bitcoin transaction frequency during a particular time.
He said that the natural flow of VeriBlock transactions on Bitcoin did not adversely impact Bitcoin or VeriBlock, and neither does it affect its security.
Veriblock’s mainnet has been launched and the project now captures 18,6 percent BTC transactions. BTC also hit a high weekly of 393,000 Txn on the 27th of March. BTC has also seen its average fee jump from $0.34 per transaction to $49 per transaction. The mempool, or queue of transactions, has also risen significantly.
Jameson Lopp has observed VeriBlock’s activities on Bitcoin’s testnet for over a full year.
During an episode on HSHR8 Podcast, Lopp stated that he does not see VeriBlock as an assault on the Bitcoin Network, like some may think, but he questioned the economics behind spending millions of dollars in fees for security.
He said that if you pay the fee to have it put in the blockchain, and convince miners to do so, there could be an economic reason for it. Lopp also noted that he could see the “value of having a dataset anchor” in Bitcoin.
VeriBlock’s CEO Justin Fisher said Bitcoin Magazine: “We think that VeriBlock expands Bitcoin’s usefulness in an elegant way and without causing a burden to the network.” It increases demand for Bitcoin, and in its own unique way helps to make Bitcoin safer while maximising the utility that Bitcoin derives from its energy consumption.
Fans are not all the same
Rick.D at NewsBTC views VeriBlock is an unwanted parasite which drags bitcoin’s already fragile scalability down. The price of the transactions will be negatively affected. It is possible that if there’s another large increase in the utility of the network, it will lead to a ” Race to the Top” within the transaction fee market.
The last time it happened, 40 dollars in Bitcoin fees were not unusual. It is hard to accept a charge like this when the economic activity that benefits Bitcoin is directly responsible. Most users find this fee unacceptable when it’s caused by altcoins that support essentially no economic activity, and are supposedly competing with Bitcoin.
VeriBlock’s theft of BTC hash rates and the filling of blocks with information that is beneficial to dying blockchains will only delay the inevitable while limiting Bitcoin’s success.
Digital currency is difficult for those outside the industry to understand due to the massive growth of altcoins that are merely a way of making money and the profitability of frauds. Before this will change, many of these altcoins need to be completely wiped out, especially those that require support from VeriBlock.
Bitcoin Blockchain as an Anchor for Other Projects
Veriblock was not the first network to leverage the BTC blockchain. Other networks have used the BTC Chain in various ways. Omni Layer uses OP_return for transactions. Omni Layer is the network which issues stablecoin USDT. Counterparty uses a method called Proof-of-Burn (PoB), while other projects, like Namecoin, use merge mining. The RSK Network is another project that uses merge mining. At the moment, it is capturing about 45 percent of BTC network hashrate.
The following resources are available to you:
Telegram: https://t.me/VeriBlock (+5500 members)
Twitter: https://twitter.com/veriblock (+1000 followers)
Reddit: https://www.reddit.com/r/VeriBlock/ ( + 70 subscribers)
Github: https://github.com/VeriBlock/nodecore-release (+10 followers)