NKN cryptocurrency review and description

()

NKN analytics and forecasts

NKNs (NKNs) offer a fully decentralized and anonymous peer-to-peer network protocol that promises to increase efficiency, scalability and security.

NKN stands for ‘A New Kind of Network’ and aims to become the equivalent TCP / IP protocol for the Internet on the blockchain. The ICH itself is an overlay that is independent of any underlying communication protocols.

Where is the project for such a scale? The ICH refers to many problems that can be solved through the network: among many – inefficient use of bandwidth, rampant censorship by governments and an invasion of user privacy.

Features

NKN plans to promote the existing blockchain ecosystem by connecting the third component of the Internet infrastructure to the block network and data transfer capabilities.

Bitcoin and Ethereum symbolize computing power through Proof of Work (PoW). Other coins like IPFS, Filecoin, Sia and Storj tokenize. There remains a need to connect network communication and data transfer to the blockchain. NKN is designed to tokenize network connectivity and data transfer, as in accordance with the new consensus PoW method.

For this, NKN uses its own consensus mechanism called “Proof of Relay” (PoR). PoR is a mechanism that encourages participants to contribute to the blockchain network by sharing their connectivity and bandwidth in exchange for rewards. Mining is essentially achieved by contributing to the level of data transfer. Members receive rewards by providing more online resources than they consume.

NKN believes that competition between nodes in the network will ultimately lead the system to a low latency, high bandwidth data transfer direction. PoR is used for both token and transaction verification. Tokens will reward nodes for data transfer and transaction verification.

A major feature in this ecosystem is the New Network Coin (NNC). Users spend NNC on data transfer, and nodes receive NNC, relaying data for users and helping to expand and share network capabilities and bandwidth. Both exchange and reward NNC are designed to encourage users to share their network resources and increase their data transfer capabilities, thereby increasing the bandwidth of the entire network.

Benefits

NKN has uniquely designed their network to use Cellular Automata (CA) to create a fully decentralized network in which the nodes themselves form a dynamic and self-developing ecosystem. The following is a description of the CA from the ICN NKN Technical Document:

“Cellular Automation (CA) is a finite state machine with a set of nodes, each of which changes its state, following a local rule, which depends only on its neighbors. Each node has only a few neighboring nodes. Spreading through local interactions, local states will ultimately affect the global behavior of the CA. The desired openness of the network is determined by the uniformity of Cellular Automata, where all nodes are identical, forming a fully decentralized P2P network (peer-to-peer network). Each NKN is constantly updated based on its current state, as well as the states of its neighbors. The neighbors of each node also dynamically change, so the network topology is also dynamic without changing its underlying infrastructure and protocols. ”

In essence, Cellular Automata is deployed as a means of promoting network self-evolution. This new level of dynamism between the leaves of nodes opens up the possibility for a new type of topology that organizes itself for greater efficiency, improving existing static and fully connected approaches to network topology.

Along with the promise of a self-developing network, the Relay Proof mechanism offers several potential advantages for scaling. In the case of PoR, the ability to transfer data is the main indicator of reward. Thanks to this incentive scheme, communication should improve as more and more participants are motivated to join and expand the network. New nodes will join the network to receive rewards by expanding the NKN network, while existing nodes are stimulated to increase data throughput.

Competition between nodes in the network should result in lower latency, higher data throughput, increased scalability, and lower costs to achieve consensus. By guaranteeing network connectivity and PoR connectivity, you can create a fully optimized infrastructure for developing DApps.

Disadvantages

It is important to note that NKN is only at the beginning of the journey. Blockchain development is planned to begin only in the second quarter of 2018, and a test network is scheduled to launch in the first quarter of 2019 and mainnet for Q3. We do not expect any specific results from NKN at the end of the product. This, of course, puts NKN at a disadvantage compared to similar projects such as Substratum, Orchid Protocol and Right Mesh.

When it comes to benefits, all of the above projects go further on the path to development. However, there are several distinctive factors that need to be taken into account, which could give ICH an advantage, despite fair competition in this space.

First of all, the scale of the ICH mainly combines the goals of all competing projects in one protocol. For example, Right Mesh is focused exclusively on mobile networks. The purpose of the ICH is to include all forms of data transmission in the network. Decentralized Internet server designs, such as Substratum, face serious scaling problems and are not completely independent of the TCP / IP communication protocols.

Due to the refusal to transmit data, NKN set up their sites to create a fully decentralized communication protocol. Although this distinguishes the project from everything else in the crypto space, it is also a very complex and ambitious goal.

How NKN confronts competing projects, firstly, will depend on the viability of the network itself, and secondly, on acceptance by users. At this stage in the game, these are two significant unknowns that must be strictly taken into account.

Output

NKN will have its own blockchain, with its own consensus algorithm. NKN is a new generation of blockchain-based peer-to-peer network infrastructure supported by the theory of cellular automata. Cellular Automation has those characteristics that contribute to the construction of a fair decentralized architecture, peer-to-peer equality and parallelism.

Many blockchain groups claim to have developed something innovative, but simply use keywords to promote a derivative and often useless product. NKN, in a sense, is the opposite: they are developing something amazing, but they need to improve their marketing efforts in order to better explain this to the public.

The erred NKN publications are clearly written by computer scientists, for computer scientists, which is good, but a stronger public relations initiative can attract more investment and early adopters. However, there is a good chance that NKN’s development technology could become ubiquitous in a few decades.

How useful was this post?

Click on a star to rate it!

Average rating / 5. Vote count:

No votes so far! Be the first to rate this post.

Leave a Reply

Your email address will not be published. Required fields are marked *