Income-Generating Nodes and Reputation-Based Architecture: Graphite Network Introduces L1 Blockchain for Mainstream Crypto

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As a seasoned researcher with a knack for uncovering the potential of emerging technologies, I find myself intrigued by the Graphite Network. Having delved into numerous blockchain networks over the years, it’s refreshing to see one that offers income opportunities for standard transport nodes – a feature that is not common in the current landscape.

The majority of blockchain systems don’t provide income possibilities for typical transport nodes, but that changes with Graphite Network’s latest Proof-of-Authority (PoA) Polymer 2.0 blockchain. As stated in a recent press release, Graphite Network now allows even ordinary operators of entry-point nodes to receive rewards within their ecosystem.

Because entry-point nodes are straightforward to set up, this innovation makes it simple for anyone, not just validators, to begin earning income by aiding the network’s functionality. With Graphite, users who host entry-point nodes receive half of every transaction fee processed through their nodes, while the other half goes to an approved node that verifies the transaction.

Instead of being simple entry points, authorized nodes on the Graphite network undergo stringent Know Your Customer (KYC) checks and meet technical prerequisites. The Graphite Foundation plays a crucial role in maintaining the network’s stability by keeping 15 foundation nodes active at all times, ensuring consistent network uptime.

Beyond generating passive income for various node operators, Graphite stands out with its reputation-based methodology for blockchain transactions. This approach mirrors the best practices from conventional finance (TradFi) in the Web3 environment. By doing so, Graphite aspires to establish trust without compromising privacy, ensuring a user experience that is both transparent and secure.

Four Pillars of Graphite’s Reputation-Based System

Graphite Network’s trust-focused characteristics encompass the process of activating accounts, thorough multi-tier identity verification for KYC (Know Your Customer), options for users to select their business partners based on transaction filters, and a Trust Score that offers an instant assessment of a user’s creditworthiness.

Many blockchains currently allow users to create as many wallet addresses as they want, resulting in an overload of inactive or single-use wallets, some created for illegal transactions. 

According to a16zcrypto’s State of Crypto 2024 report, approximately 220 million unique digital wallets have been involved in blockchain transactions this year. Yet, many of these accounts were only used once and cannot be considered regularly active. Additionally, preliminary findings from the 2024 Crypto Crime Report suggest troubling patterns, with an estimated $24.2 billion in cryptocurrency linked to illegal activities, as per data from 2023.

One possible solution for handling these problems could involve charging a modest setup fee for every new account. This is similar to what Graphite does, as part of their “one user, one account” policy. By doing this, they not only discourage spam accounts but also make it more likely that the wallet addresses associated with each account will be used in a genuine manner.

Despite prioritizing its reputation, Graphite values user anonymity and maintains strict data privacy standards. To uphold these principles, Graphite integrates a multi-step KYC procedure, enhancing the user’s trustworthiness rating over time. Social media verification is offered as part of the initial launch for added credibility.

In simpler terms, Graphite guarantees that all Know Your Customer (KYC) processes occur independently from the blockchain, meaning user personal information is not stored on it. Furthermore, it uses a technique called Zero Knowledge Proof (ZKP) to confirm data accuracy without disclosing the data itself, thereby maintaining absolute privacy for these KYC checks.

It’s common sense that many people choose to avoid interactions with dubious entities. To enhance user autonomy and trust during each transaction, Graphite offers KYC (Know Your Customer) filtering options for increased security. By utilizing these filters, Graphite users can establish requirements that any incoming transactions must fulfill.

For instance, users can choose to only accept transactions from accounts with a specific KYC level or higher, or from accounts that have been activated. If an incoming transaction doesn’t meet the filter requirements, it’s automatically rejected at the network level, keeping suspicious or low-reputation transactions at bay.

To go along with this, we have Graphite’s Trust Score that signifies a user’s general reliability. This score offers a sense of how secure it is to interact with someone, which can be particularly useful in situations such as lending. It assists lenders in evaluating risk and determining the loan terms accordingly.

Graphite’s Solution to High Fees and Slow Transaction Confirmations

Many users find the standard delays and expenses associated with blockchain transactions frustrating. For far too long, they’ve had to contend with significant transaction fees, which can be as much as a quarter of the total transaction value, and confirmation times that are frequently longer than ten minutes.

Using Graphite, users experience swift transfer processing – with transaction completion typically taking less than 10 seconds – and can handle up to 1400 transactions every second. This efficiency ensures a smooth transfer process, even during high-traffic periods. Additionally, the network’s fee structure is easy to understand, providing more predictable costs for users.

Helping Developers Build with EVM Compatibility

Graphite provides a method for developers to operate Ethereum-like smart contracts. By including an industry-standard EVM, Graphite enables Web3 creators to execute Solidity contracts on their network without additional development, thereby saving time and resources. Moreover, Graphite’s Proof of Authority (PoA) Polymer 2.0 consensus ensures that smart contracts run faster and more effectively.

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2024-12-11 20:05