Through PoW 2.0, Quai Network (QUAI) Achieves Scalability

The Quai Network employs a novel blockchain architecture that makes use of sharding and the PoW 2.0 consensus method to speed up transactions and decrease delays. High blockchain costs and centralization are common outcomes of the scalability concerns that plague standard Layer 1 blockchains. The Quai Network deploys sharding to address the issue by providing 13 independent blockchains. There are three main types of blockchains, each of which creates blocks asynchronously to increase the rate at which new blocks may be added to the network. Quai Network uses the PoW 2.0 consensus process and merged mining to remain extremely decentralized and open-source without compromising on performance.

These five businesspeople, Alan Orwick, Jonathan Downing, Karl Kreder, Yanni Georghiades, and Sriram Vishwanath, conceived of the blockchain idea in 2019 and formed Dominant Strategies. Implementation of the system began in 2021, after the whitepaper was released by the company’s creators. The network was put through its paces in early 2022, and the results were so promising that two rounds of funding were raised from prominent VC companies including Polychain Capital and Alumni Ventures. Dominant Strategies, the parent business of Quai Network, has the personnel and infrastructure in place, including a reliable blockchain, to meet the increased demand. As of 2023, about 50 people are employed on the Quai Network project, making quick, easy, and cheap decentralized finance a reality (DeFi).

The Quai Network is working to resolve the blockchain trilemma, which has slowed the development of cryptocurrency blockchains like Bitcoin. According to the blockchain trilemma, blockchains have to give up either scalability, security, or decentralization. All three of these features are theoretically incompatible with the functioning of a blockchain. Common blockchains, for instance, may work around scalability problems by raising block size, which in turn permits a larger transaction rate. However, it will weaken decentralization by reducing the number of nodes in a network. To address the issue of expanding blockchains without compromising decentralization and security, Quai Network employs hierarchical merged mining.

The Prime chain sits at the summit of this pyramid and employs a hashing algorithm that is both memory-intensive and distributed across the network. The Prime chain must be mined by all Quai miners. The mining difficulty is high, and the throughput only generates one block every 15 minutes. When the entire network is being addressed, the low throughput is perfect because that’s where all the miners are. Prime Chain, on the other hand, is not great for everyday transactions and decentralized applications (DApps) because to its high difficulty and limited throughput (decentralized apps).

Cyprus, Paxos, and Hydra are the three Region Chains that follow the Prime Chain. It takes these Region chains 5 minutes to create a single block. As a result, their throughput is greater, and their difficulty is lower, than the Prime chain. These subsidiary chains are available for miner, however miners are limited to mining only one Region chain in addition to the Prime chain at any given time. This implies that miners, at the time of their first setup on the network, may choose just one of the Region chains to participate in.

In a similar vein, each Region chain has three levels of Zone chains. A miner can only mine one of the available Zone chains, much like with Region chains. Users of the Quai Network may mine not one, not two, but three different chains all at once. With a new block generated on each Zone Chain every 10 seconds, it’s a great choice for regular business and personal use. If necessary, a Zone chain can additionally make references to other Zone chains in other Region chains. Therefore, the majority of Quai Network actions will occur on Zone chains.

With its 13-chain topology, Quai Network takes security seriously, and Coincident blocks are a key part of that. Coincident blocks are blocks that can be employed in several different Quai chains. This occurs when a miner unearths a nonce that satisfies the requirements for many chains. The guidelines for Coincident blocks are as follows: Each block of authority must be aligned with each block of authority right below it. Separate blocks of subordinates can be mined without having to wait for a Coincident block to complete. A Coincident block is only legitimate if it holds water in all of the situations where it may be used. To follow Rule 3, contiguous blocks must be added simultaneously. To facilitate cross-chain references, blocks that occur simultaneously will have the same hash in all situations where it is valid.

Since the Quai Network was built using a merged mining technique, it is inherently capable of forming connections across different blockchains. This enables the use of cross-chain contracts and the transfer of assets between different blockchains.

Blockchain security on the Quai Network is based on the idea of pooled computing power, or CPU mining. The Quai Network PoW 2.0 architecture, which employs the Blake3 hash function, enhances the speed and security of PoW 1.0, which is utilized by most other blockchains. The carbon impact of each transaction is lessened as well, thanks to the increased capability of the PoW 2.0 infrastructure. This aligns with the mission of Quai Network to become a carbon-neutral blockchain.

In order to boost transaction throughput and decrease network congestion, sharding uses a pyramidal structure to horizontally divide resources by forking off into new chains. To store and process the data for the specific shards they are validating, validators no longer need to rely on high-powered servers. In reality, people could be able to use Quai Network on their mobile device in the near future. The lowered hardware requirements make it easier for more people to become network validators, which increases the network’s speed and security by decreasing the network’s reliance on a central decentralization.

Merged mining refers to pooling hash rates across various blockchains. Unlike the majority of blockchains, the Quai Network’s header includes information for all three chains (Prime, Region, and Zone). Quai Network mining allows miners to select one of nine distinct “slices,” or individual chains, dependent on the difficulty with which they wish to locate and mine the Prime, Region, or Zone header.

Quai Network’s native token, QUAI, was rewarded to miners that verified and processed transactions on the network at the time. Running a miner or node, implementing smart contracts, and sending transactions on Quai all rewarded developers for their participation. Within one month, the network had mined 1.4 million blocks, processed 110,000 transactions, and grown to 1,700 nodes during the Bronze Age Testnet phase. U.S. crypto venture capital company Polychain Capital invested $8 million in Dominant Strategies a month into these changes in March 2022. The funding was a turning point in the project’s history, allowing the Quai Network to grow by staffing up and accomplishing other goals. The second big finance for the project came in May 2022, two months after the first large fundraising, when Alumni Ventures, the world’s third most active capital venture business, invested $2 million. Management at Alumni Ventures has issued a public statement praising Quai Network’s new solution to overcoming the blockchain trilemma through its shared security via merged mining. Funding allowed the Quai Network team to expand, and new initiatives including the Quai Ambassador Program and the Social Media Rewards Program were introduced. Influencers from all around the world are hand-picked for the ambassador program so that they may provide content, organize local events, interact with the public, and make useful tools available to developers. The exchange-off is the opportunity to get access to special benefits. Like Twitter, YouTube, Reddit, TikTok, and Instagram, Quai Network manages a large and active online community. In October 2022, developers published a beta version of the Quai Dashboard to facilitate better communication and collaboration throughout the community. Quai Network is now capable of operating on a global scale while maintaining its renowned decentralization and security. To that end, it plans to launch its mainnet in the near future, which will allow for infinite scalability.

Short-term inflation should be lowered thanks to the network’s token supply cap of 100 million. Future worries about deflation will be mitigated by the restricted supply of QUAI.

QUAI has the makings of a solid investment if you can hold on to your money for the long haul and are willing to be patient. There is a dedicated group of people working on enhancing the Quai Network’s blockchain. QUAI is a good bet since it has the support of influential financiers, a robust community, and a defined path forward.

QUAI is an investment opportunity with high potential for return (ROI). The launch of its mainnet is highly anticipated, as it has the potential to increase interest in QUAI as an investment and hence drive up the value of the token.