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Rubix Weekly Recap (September 2, 2024)

Weekly Recap: August 26 - September 1

September 02, 2024

👋 Welcome to the Rubix Weekly Digest

Welcome to the fifth edition of the Rubix Weekly Newsletter! This week, we're excited to share news about our latest partnership, dive deep into our Proof of Pledge mechanism, explore our unique Creditchain concept, and take a closer look at the Rubix mining process. Let's get started!

📈Rubix by the Numbers

As we continue to scale, here are some of the key metrics that showcase our progress: 

🤝 Exciting Partnership Announcement

We're thrilled to announce our latest integration with @Zoniqxinc, a global leader in the tokenization space!

  • This collaboration combines Zoniqx's comprehensive Tokenized Asset Lifecycle Management (TALM) platform with Rubix's scalable object chain-based blockchain stack.

  • With the RWA tokenization market expected to reach USD 16 trillion by 2030, this partnership is set to unlock new opportunities for cross-domain asset tokenization.

🔐 Deep Dive: Proof of Pledge (PoP) Consensus Mechanism

This past week, we took an in-depth look at our innovative Proof of Pledge (PoP) consensus mechanism, a cornerstone of Rubix's blockchain technology. Today, we’ll continue to explore how PoP works and why it's a game-changer in the blockchain space.

Understanding PoP vs Traditional PoS

In traditional Proof of Stake (PoS) systems, validators stake their tokens to secure the network and earn rewards. The more tokens staked, the higher the chance of being selected to validate blocks. This can lead to centralization as wealthy validators accumulate more power over time.

Rubix's PoP takes a fundamentally different approach:

  • Localized Pledging: Instead of continuous staking, validators pledge tokens for specific transactions on individual Objectchains. This creates a more dynamic and decentralized validation process.

  • Temporary Commitment: Pledges are typically held for 7 days, unlike the indefinite staking in PoS systems. This temporary nature prevents long-term consolidation of power.

  • Flexible Participation: Different validators can secure different Objectchains, spreading the validation process across the network.

  • Revocable Pledges: Pledges can be revoked if replaced by other validators, adding an element of competition and further decentralization.

Key Features of Proof of Pledge (PoP)

  • Transaction-Specific Validation: Validators pledge for individual transactions, not entire blocks. This granular approach enhances security and reduces the impact of potential breaches.

  • Dynamic Validator Selection: The system dynamically selects validators for each transaction, preventing predictability and increasing security.

  • Credit System: Validators earn credits for pledging, which can later be converted to RBT tokens. This incentivizes network participation without favoring those with the largest token holdings.

  • Objectchain Architecture: PoP leverages Rubix's unique Objectchain structure, allowing for parallel processing and enhanced scalability.

Major Benefits of Proof of Pledge (PoP)

  • Egalitarian Participation: Any node can become a validator, lowering the barrier to entry and promoting a more inclusive network.

  • Eco-Friendly: PoP has a significantly lower carbon footprint compared to Proof of Work systems, aligning with sustainable blockchain practices.

  • High Decentralization: The spread across many Objectchains and dynamic validator selection ensures a highly decentralized network structure.

  • Reduced Concentration Risk: The absence of perpetual staking advantages prevents the concentration of power among a few large stakeholders.

  • Scalability: The Objectchain architecture combined with PoP allows for highly scalable transaction processing.

  • Enhanced Security: The localized nature of pledges and the credit system create strong economic incentives for honest behavior.

Technical Implementation

  • Pledge Mechanism: Validators lock a certain amount of RBT tokens as a pledge for a specific transaction.

  • Validation Process: For each transaction, a group of validators (typically 7) is selected based on their pledges.

  • Consensus Achievement: A supermajority (5 out of 7) must agree for a transaction to be validated.

  • Credit Accumulation: Successful validation earns proof credits, stored on the Creditchain.

  • Pledge Release: After the pledge period (usually 7 days), tokens are released back to the validator.

By addressing the centralization issues of PoS while maintaining efficiency, Rubix's Proof of Pledge offers a more democratic, secure, and scalable consensus mechanism for the future of blockchain technology.

💎 Rubix Chain Proof Credits and Creditchain Explained

The two interconnected concepts that form the backbone of Rubix's unique incentive structure: Proof Credits and the Creditchain. Let's explore how these innovations work together to create a fair, transparent, and secure reward system for our network participants.

Understanding Proof Credits

Proof Credits are the cornerstone of Rubix's reward system, serving as a measure of a validator's contribution to the network:

  • Definition: Proof Credits are rewards earned by validators for participating in the Proof of Pledge (PoP) consensus mechanism.

  • Earning Mechanism: Validators accumulate credits by pledging tokens, validating transactions, and maintaining network integrity.

  • Variable Accumulation: The rate of credit accumulation varies based on several factors:

    • Duration of token pledges (full credit for 7-day pledges, fractional for shorter periods)

    • Number of transactions validated

    • Type of network operation (higher credits for open network, lower "centi-credits" for subnet operations)

  • Conversion to RBT: Once a validator accumulates enough credits, they can be converted into RBT tokens, providing a tangible reward for network participation.

  • Dynamic Difficulty: The number of credits required to mint one RBT token increases over time, ensuring a fair and gradually more challenging process that rewards early adopters while still providing opportunities for newcomers.

The Creditchain Concept

The Creditchain is Rubix's innovative solution to ensure the legitimacy and security of Proof Credits:

  • Definition: The Creditchain is a tamper-proof ledger specifically designed to record and verify validator rewards.

  • Functionality: It acts as an immutable record of all credit-earning activities within the Rubix network.

  • Recording Mechanism: The Creditchain records:

    • Duration and amount of token pledges

    • The number and type of transactions validated

    • Network type for each operation (open or subnet)

  • Verifiability: Any node can cross-check a validator's claimed credits against the transaction details recorded on the Creditchain, making fraud virtually impossible.

  • Transparency: The Creditchain provides a transparent view of credit distribution across the network, enhancing trust and fairness.

Technical Implementation

  • Credit Calculation: A sophisticated algorithm calculates credits based on pledge duration, transaction complexity, and network type.

  • Creditchain Structure: The Creditchain is implemented as a separate blockchain, interlinked with the main Rubix chain for cross-verification.

  • Smart Contract Integration: Smart contracts automate the process of credit accumulation and conversion to RBT tokens.

  • Cryptographic Proofs: Zero-knowledge proofs are used to verify credit claims without revealing sensitive validator information.

Benefits of the Proof Credits and Creditchain System

  • Fair Reward Distribution: Credits are earned based on actual network contribution, not just token holdings.

  • Incentivized Participation: The credit system encourages active and consistent participation in network validation.

  • Enhanced Security: The verifiable nature of the Creditchain adds an extra layer of security to the reward system.

  • Flexible Participation: Validators can choose their level of involvement, from full-time to occasional participation.

  • Scalable Rewards: The system can adapt to network growth, maintaining incentives as the Rubix ecosystem expands.

⛏️ The Rubix Mining Process

Unlike traditional blockchain mining, our approach focuses on network contribution and efficient consensus, creating a more sustainable and inclusive ecosystem. Let's explore the key components and mechanics of Rubix mining.

The Foundation: Proof Credits

At the heart of Rubix mining are Proof Credits:

  • Earning Credits: Validators earn these credits by participating in the Proof of Pledge (PoP) consensus mechanism.

  • Credit Valuation: Credits are like "gold stars" for good blockchain behaviour, representing a validator's contribution to the network.

  • Dynamic Value: The value of credits in relation to RBT tokens changes over time, ensuring long-term sustainability of the mining process.

Converting Credits to RBT Tokens

The process of turning Proof Credits into RBT tokens is a key feature of Rubix mining:

  • Conversion Threshold: Once a validator accumulates enough credits, they become eligible to convert them into RBT tokens.

  • Dynamic Difficulty: The number of credits needed for one RBT isn't fixed. It increases over time, similar to Bitcoin's increasing mining difficulty.

  • Fairness Mechanism: This dynamic difficulty ensures a fair process where early participants are rewarded, but newcomers still have opportunities to mine effectively.

PBFT Consensus: The Validation Engine

Rubix uses Practical Byzantine Fault Tolerance (PBFT) consensus for transaction validation:

  • Validator Selection: For each transaction, 7 validators are chosen to participate in the consensus process.

  • Consensus Requirement: 5 out of 7 validators must agree for a transaction to be considered valid.

  • Speed and Security: This approach balances the need for quick transaction confirmation with robust security against potential attacks.

Staking for Mining: Skin in the Game

To participate in the mining process, validators must have a stake in the network:

  • Staking Requirement: Validators need to stake 1 RBT token when minting new tokens.

  • Time-Locked Stakes: The staked RBT tokens are locked for a certain number of transactions of the newly minted token.

  • Purpose: This mechanism prevents immediate dumping of newly minted tokens and ensures long-term commitment to the network's health.

Technical Implementation

  • Credit-to-RBT Conversion: A smart contract governs the conversion process, taking into account the current difficulty level and the validator's credit balance.

  • PBFT Implementation: The consensus process is implemented through a series of message exchanges between the selected validators, with cryptographic signatures ensuring the integrity of each vote.

  • Staking Mechanism: Another smart contract manages the staking process, including the time-locking of staked tokens and their release after the required period.

Key Benefits of the Rubix Mining Process

  • Energy Efficiency: By focusing on network contribution rather than computational puzzles, Rubix mining is significantly more energy-efficient than traditional Proof of Work systems.

  • Inclusivity: The credit-based system allows for broader participation, as it doesn't require expensive mining hardware.

  • Network Security: The combination of PBFT consensus and staking requirements creates a robust security model resistant to various types of attacks.

  • Scalability: This mining process is designed to scale efficiently with network growth, maintaining performance as the ecosystem expands.

Unique Features

  • Objectchain Integration: The mining process is integrated with Rubix's Objectchain architecture, allowing for parallel processing of transactions across different chains.

  • Adaptive Difficulty: The system can adjust the credit-to-RBT conversion rate based on network conditions, ensuring stability and fairness.

  • Reward Distribution: Mining rewards are distributed more evenly across participants, reducing the centralization risks associated with large mining pools in other blockchains.

The Rubix mining process represents a significant innovation in blockchain technology. By combining credit-based rewards, efficient consensus mechanisms, and strategic staking requirements, we've created a mining ecosystem that's not only more sustainable and inclusive but also scalable and secure for the long-term growth of the Rubix network.

👀 Want to dive deeper into the Rubix ecosystem?