NEO will start to decentralize its network by allowing important commercial projects and institutions to run consensus nodes. That will create a confederation of actors that will work in order to sustain the network, its security and its development.
Coopetition, NEO’s Decentralized Network
Nowadays, there are several second order interactions that happen off-chain, but they never come back to the chain in a computable way. These interactions create different situations where individuals or groups can benefit from them. If they exploit these off-chain interactions, then they can create on-chain oligopolies.
That constitutes situations in which the network can be seriously compromised. Governments can easily attack enterprises with a lot of power in the Bitcoin network and compromise the overall Bitcoin blockchain.
NEO works in a different way. The nodes are elected by token holders by consensus, something highly criticized as being too centralized. That’s why City of Zion is searching for new promising approaches for decentralizing public blockchains. That would solve several problems and would improve the network.
“Coopetition is the logic behind industrial open source and several energy industry consortiums. It is a setup where businesses who would otherwise be competitors cooperate in a shared project. Through such cooperation, they can develop platforms and technologies that radically change how services are delivered, increasing the total market reach significantly,” reads City of Zion’s statement.
NEO will start with the decentralization project allowing developers and communities to run consensus nodes. In this way, there will be an initial confederation of actors that will work so as to guarantee the security and the success of the network. Through competition, players will be equal in the network and their power will not depend on their budget or the electricity cost. In this way, a more decentralized network will surge.
“These nodes will be run by people of different nationalities, using different service providers in different countries and under different operating systems. This means that no jurisdiction, service provider or software flaw can affect the failure limit of the network.”
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