CR Regions

Dec 10, 2020

6 min read

Elastos & Benchmark Protocol

First, a Quick Update from CR Regions,

Next Steps: Pushing for a Security Audit

  1. Beginning with the previously mentioned stress test with 36 DPoS nodes running, we need to ensure a sufficiently decentralized network. In fact, for a long time many of the close teams such as DMA were building on a centralized Elastos ETH Sidechain — as we called it then. Now as a major improvement, the current 12 Council supernodes are running the Elastos Smart Contract consensus; however they are still hosted with the elected council’s permission by a team of developers still working on the EVM.
  2. Although our close partners will undoubtedly build on Elastos, for wider adoption by 3rd party projects it is important for us to conduct a security audit by reputable firms who can do a penetration test and code review.
  3. It should not be surprising that a security audit is necessary to instill trust. Projects that do not know us cannot simply take our security or word for granted. Also, because our DPoS network and EVM-based code is brand new, it could very well have bugs or security flaws like any other software.
  4. Our engineers are some of the best in the world who have built one of the world’s most secure blockchains, however there is no security by Elastos that can be directly applied to new technology such as Smart Contract chains or DPoS consensus. It is crucial to understand that although we fundamentally leverage the BTC hashrate and utilize over 50% of it, there can be any number of other bugs in the system or attack vectors in a new software system.

On Business Development (BD)

Adaptive Supply Research with Benchmark Protocol

Primary Disadvantages of Collateral-backed Stablecoins

  1. No Legal Certainty of Future Government Intervention
    Try as the various collateral backed stablecoin issuers may, the basic concept of allowing entities other than the government to issue a stablecoin may be short-lived.
  2. There are already many problems associated with proving that these issuers or custodians remain solvent, and even if they are not, that does not say anything about the future. Continual accounting audits and trusting in 3rd party entities may not make for a tenable or desirable long-term situation.
  3. And of course, there is always the possibility of governments issuing their own competing stablecoins such as China already has and the US likely will soon. At which point the question begs to be asked: for what reason do other stablecoins have any reason to exist — except perhaps for privacy — on a public blockchain?
  4. Collateral-Backed Stablecoins Carry Risk
    Some stablecoins use an over-collateralized asset to back their value; these can be liquidated if the collateralized asset were to lose value — a fundamental risk that will always exist with these types of stablecoins.

Benchmark Protocol’s Concept

Why Cross-Chain Adaptive Supply Tokens Are Interesting

The Goal For The Future