Exclusive: Graphite Network’s Marko Ratkovic on Launching a Trust-Driven Blockchain with Passive Income for All Nodes

As I delve into the world of cutting-edge technology and innovative thinking, I find myself captivated by the story of Marko and his vision for Graphite Network. With a background steeped in both technical expertise and a keen understanding of the challenges faced by the blockchain industry, it’s no wonder that he is driving change with such determination.

Many blockchain advancements exist today, yet they often disregard market inequalities and fundamental issues that impede widespread use and user confidence. Enter Graphite Network, a cutting-edge Proof-of-Authority (PoA) blockchain, which has taken a fresh approach. Offering passive income for node operators, a trust system based on reputation, and privacy-focused KYC procedures, it establishes a new standard for fair blockchain operation, promoting mass adoption and effectively addressing future requirements.

We reached out to Marko Ratkovic, the CTO of Graphite, and his team who have successfully implemented the innovative Polymer 2.0 algorithm in a blockchain system, with the goal of connecting the conventional financial sector (TradFi) with the decentralized realm of Web3.

Marko’s adventure with Graphite commenced at a familiar stage for many blockchain startups – concentrating on development and creating fundamental technology. Yet, as they delved deeper, it became increasingly clear that widespread acceptance was out of reach using the existing market solutions.

At first, our work centered around developing blockchain systems, but as we delved into intricate low-level protocols and heavy-duty systems, it became increasingly evident that we couldn’t ignore the unfair practices in the market,” Marko reflects. “The majority of solutions available today facilitate illicit activities, hide the origin of funds, drain vast resources, and operate inefficiently. How can we advocate for widespread acceptance when the underlying structure is so fundamentally flawed?

Building a Fairer System with Entry-Point Nodes

Marko points out that one significant issue in the world of blockchain currently is that developers and system integrators are frequently overlooked. These individuals play a crucial role as the foundation of these systems, yet they typically have to resort to external methods for generating income, rather than benefiting directly from the ecosystems they help build.

Graphite addresses this problem by offering a unique feature where operators of entry-point nodes can receive 50% of the transaction fees that travel through their nodes. These entry-point nodes, also known as transport nodes, are specifically designed to manage transaction routing and network activity without necessitating full validator roles.

Marko clarifies that for the very first time, individuals not serving as validators can also earn a reliable income through blockchain operations. This move is seen as a significant stride towards the long-awaited fairness the industry has been advocating.

Reputation as the Cornerstone of Blockchain Trust

To put it simply, Marko and his group recognized that the blockchain environment called for a shift in perspective; they believed that reputation should serve as the main measure, ensuring that users, verifiers, and developers maintain responsibility.

Marko asserts, “Reputation is worth more than wealth.” He goes on to describe a setup where participants can vie against each other. Those with stronger reputations, who offer superior services, are capable of handling more transactions and reap greater rewards due to their higher quality work.

To ensure a reliable user standing is maintained, the team devised a system known as KYC (Know Your Customer). This system assigns each user a Graphite Trust Score, which takes into account several factors such as the level of KYC verification, transaction history, account age and activity, pattern of holdings, the average Trust Scores of other accounts this one has interacted with, and any fraud allegations. Yet, the Graphite team aimed to avoid overly restrictive user regulations.

Marko explains that in our blockchain, individuals have the freedom to customize their interaction settings – such as whether to verify identity, who they want to connect with, how to manage transactions, and so on. He believes it’s essential for users to have control over their own choices.

Privacy and Trust Through Advanced KYC

Highlighting its focus on privacy, Graphite’s multi-layered Know Your Customer (KYC) approach is a notable aspect. It initiates with an uncomplicated social media verification procedure and progresses to incorporate additional stages of authentication. Notably, all KYC exchanges take place off-chain, maintaining user data confidentiality while fulfilling the openness requirements of both businesses and regulatory bodies.

Marko explains, ‘We’re blending privacy and trust through Zero-Knowledge Proof (ZKP) technology. By employing this method, we can confirm user details without actually accessing or disclosing sensitive data. This allows users to maintain control over their information while businesses can engage with them securely, gaining the assurance they require.’

Graphite streamlines the process by reducing the necessity of repeated Know Your Customer (KYC) checks among various platforms. Once a user completes the initial verification, partnered systems can ask for specific details like age or location, without requiring access to original documents directly.

Marko explains, “We take a privacy-focused strategy. It’s much less intrusive compared to conventional financial systems, which frequently leverage user information in ways that can be exploitative.

High-Performance Transactions for Mass Adoption

Graphite has been developed with a focus on wide-scale usage. With the ability to handle up to 1,400 transactions per second (TPS) and confirmations within less than 10 seconds, it outperforms Ethereum‘s transaction rate of 15-20 TPS. The high throughput, facilitated by the PoA Polymer 2.0 algorithm, results in consistent fees that are close to the minimum, making this blockchain user-friendly for everyday transactions.

Marko points out that many current Layer-2 networks are reliant on the gas fees from Ethereum, which can be problematic for regular users. However, he emphasizes that Graphite aims to eliminate this issue.

For a smoother transition, Graphite is completely Ethereum Virtual Machine (EVM) compatible, enabling developers to effortlessly transfer their existing Solidity smart contracts over.

He makes it clear that this is not intended to substitute for Ethereum. Instead, the focus is on improving user-friendliness, reducing hurdles for developers, and preserving decentralization.

Bridging TradFi and Web3

Marko highlights that traditional financial institutions tend to steer clear of blockchain technology due to its link with anonymity. However, Graphite has innovatively developed tools to ensure transparency in the traditional financial sector without jeopardizing users’ privacy.

According to Marko, tools such as reputation evaluations will enable banks and financial institutions to effortlessly collaborate with blockchain technology.

Using Graphite, financial establishments can craft customizable smart contracts tailored to their unique reputation standards. Here’s an illustration provided by Marko:

A financial institution might establish a customized agreement, or smart contract, that grants loans solely to individuals who meet specific trustworthiness criteria, thereby adhering to both legal and corporate standards. Such personalized interactions are unique features not found in other current blockchain systems.

Tagged Addresses & Ticker System

Beyond focusing on privacy and fairness, Graphite also presents a number of distinctive attributes designed to facilitate adoption and promote transparency. For one, tagged addresses let users assign labels to particular wallets for easy identification. This feature is useful in cases like charitable donations where funds can be labeled, thereby ensuring their proper use. Any misuse becomes instantly apparent on the blockchain. Additionally, Graphite has a ticker system denoted by its symbol @G.

Marko clarifies that this feature provides transparency within the system,” he says. “To illustrate, if a stablecoin is connected to our blockchain, its unique identifier such as USD@G instantly reveals its network. It’s a straightforward yet potent method for reducing potential misunderstandings.

A Vision for the Future

Graphite Network’s blueprint encompasses a KYC solution that users can utilize just once and then effortlessly apply across various platforms. Additionally, their strategy includes open-source Peer-to-Peer (P2P) lending and insurance, which harness the power of Trust Scores for decentralized credit and community-based risk management.

Marko states, “We’re creating a blockchain environment that’s equitable, safe, and open for all users.” He emphasizes, “Rather than making promises, we focus on providing real-world solutions.

With their ambitious plan, Marko and Graphite might just be the catalyst for a fresh start that the blockchain sector has long anticipated.

2024-12-17 00:23