Scalability
Stegos is built to be faster and more efficient than other crypto. In fact, Stegos is designed to be so efficient, we plan to provide full mobile staking, not just light wallets! So you’ll be able to earn STG from your pocket.
Stegos has three key scalability features:
Stegos uses a unique consensus mechanism called gamified proof-of-stake or gPOS. gPoS is a modification of proof-of-stake consensus (PoS), which was created as an efficient alternative to proof-of-work (PoW). PoW consensus requires a lot of computational power which is extremely wasteful, environmentally unfriendly and is beyond the means of all but the richest users.
In a PoS system, a validator’s ability to create blocks is directly proportional to the amount of coins they hold. This is much more computationally efficient, but it still rewards the rich. This is turn leads to centralization of validation services and compromises the safety of the network.
To rectify this issue, our developers have created gPoS. Under gPoS everyone who runs a Stegos node for a certain amount of time will be eligible to receive the validator service award, regardless of the size of their stake. To fund this, a portion of each block reward will be added to the service award pool. A winning validator will be selected in an ongoing cryptographic lottery based on verifiable distributed randomness. The service award is awarded roughly every ten thousand blocks, so you could receive an enormous payday, even if you only provide the minimum stake!
#2 Sharding
Sharding is a technique to cut down bulky databases into more manageable chunks or “shards.”
Image Credit: Digital Ocean
As the diagram shows, sharding partitions databases horizontally. This way, instead of dealing with an entire database, one needs to only deal with a specific shard. Stegos uses transactional sharding to scale. The validators will only need to verify a subset of incoming transactions, instead of dealing with the whole blockchain. This will allow Stegos to process tens of thousands of transactions per second across millions of devices.
#3 Pruning
Stegos isn’t the first blockchain to boast of huge transaction speeds. But that’s only half the story. Consider: the Bitcoin blockchain is currently larger than 200 gigabytes, despite being only able to handle 7–10 transactions per second. If it suddenly supported 16,000 transactions a second, the blockchain would start growing by 350 gigabytes a day or 127 terabytes a year!
This is obviously unsustainable in a decentralized network. The Stegos blockchain is kept compact by routinely and automatically removing spent coins and expired messages using secure cryptographic pruning. This has an added privacy benefit of deleting old transaction and messaging data, making it impossible to unobscure the Stegos chain using chain analysis.
Privacy
Now let’s look at precisely how Stegos will provide the first fully integrated private crypto experience, entirely on-chain.
In Stegos, only you and the people you transact with have direct access to transaction information or metadata. Public addresses are cloaked by stealth addresses, while transaction details are cloaked with random values. Transactions cannot be linked, and even if you post your Stegos public key or QR code online, it cannot be tracked back to you.
#2 Messaging and Chat
Private transactions are all very well, but you still need to initiate them, which means you need a way to contact the other party without exposing your (or their) personal information. To do this, we implement a fully private communication and integrate it within the Stegos app.
The Stegos chat service:
Even with private transactions and communication, users still need a way to get access to the cryptosphere without exposing their private data. Exchanges are a notorious security and privacy risk, with most exchanges requiring more personal data than signing up for a standard bank account!
Stegos will implement on-chain peer-to-peer trading, allowing users to buy and sell crypto using atomic swaps. (Stegos can’t do anything about the privacy problems of other crypto, but any surveillance trails will be broken once your crypto enters the Stegos ecosystem.)
#4 Private Apps
The Stegos app provides an integrated crypto experience, but we know you always need more: more functionality, and more choice between existing functionalities. For this reason, Stegos will have an on-chain privacy app store, with details of the apps stored privately on the Stegos blockchain. This way, you will be able to browse and access apps privately. You can also be confident that the apps you install are private and secure. To be listed on the Stegos privacy app store, the app must have a manifest which includes the following description:
The TAC is a sandbox and virtual machine which runs plug-in apps written using HTML, CSS, and JavaScript. The TAC will keep the DApps contained while they run on your device, and will provide a simpler and more secure user experience.
Stegos is built to be faster and more efficient than other crypto. In fact, Stegos is designed to be so efficient, we plan to provide full mobile staking, not just light wallets! So you’ll be able to earn STG from your pocket.
Stegos has three key scalability features:
- gPoS consensus
- Sharding
- Pruning
Stegos uses a unique consensus mechanism called gamified proof-of-stake or gPOS. gPoS is a modification of proof-of-stake consensus (PoS), which was created as an efficient alternative to proof-of-work (PoW). PoW consensus requires a lot of computational power which is extremely wasteful, environmentally unfriendly and is beyond the means of all but the richest users.
In a PoS system, a validator’s ability to create blocks is directly proportional to the amount of coins they hold. This is much more computationally efficient, but it still rewards the rich. This is turn leads to centralization of validation services and compromises the safety of the network.
To rectify this issue, our developers have created gPoS. Under gPoS everyone who runs a Stegos node for a certain amount of time will be eligible to receive the validator service award, regardless of the size of their stake. To fund this, a portion of each block reward will be added to the service award pool. A winning validator will be selected in an ongoing cryptographic lottery based on verifiable distributed randomness. The service award is awarded roughly every ten thousand blocks, so you could receive an enormous payday, even if you only provide the minimum stake!
#2 Sharding
Sharding is a technique to cut down bulky databases into more manageable chunks or “shards.”
Image Credit: Digital Ocean
As the diagram shows, sharding partitions databases horizontally. This way, instead of dealing with an entire database, one needs to only deal with a specific shard. Stegos uses transactional sharding to scale. The validators will only need to verify a subset of incoming transactions, instead of dealing with the whole blockchain. This will allow Stegos to process tens of thousands of transactions per second across millions of devices.
#3 Pruning
Stegos isn’t the first blockchain to boast of huge transaction speeds. But that’s only half the story. Consider: the Bitcoin blockchain is currently larger than 200 gigabytes, despite being only able to handle 7–10 transactions per second. If it suddenly supported 16,000 transactions a second, the blockchain would start growing by 350 gigabytes a day or 127 terabytes a year!
This is obviously unsustainable in a decentralized network. The Stegos blockchain is kept compact by routinely and automatically removing spent coins and expired messages using secure cryptographic pruning. This has an added privacy benefit of deleting old transaction and messaging data, making it impossible to unobscure the Stegos chain using chain analysis.
Privacy
Now let’s look at precisely how Stegos will provide the first fully integrated private crypto experience, entirely on-chain.
- Transactions
- Messaging and Chat
- Peer-to-Peer Trading
- Private Apps
In Stegos, only you and the people you transact with have direct access to transaction information or metadata. Public addresses are cloaked by stealth addresses, while transaction details are cloaked with random values. Transactions cannot be linked, and even if you post your Stegos public key or QR code online, it cannot be tracked back to you.
#2 Messaging and Chat
Private transactions are all very well, but you still need to initiate them, which means you need a way to contact the other party without exposing your (or their) personal information. To do this, we implement a fully private communication and integrate it within the Stegos app.
The Stegos chat service:
- Functions like a standard messaging app, with group chat, contact lists, and more.
- Lets you use your public key as an identifier. Like with transactions, stealth addresses ensure public keys cannot be linked back to you.
- Sends messages via the Stegos fast message bus, ensuring messages are received instantly without waiting for chain confirmation.
- Lets you initiate an STG transaction by sending a QR code via private chat. You can also create chat groups and invite people to it via QR codes.
Even with private transactions and communication, users still need a way to get access to the cryptosphere without exposing their private data. Exchanges are a notorious security and privacy risk, with most exchanges requiring more personal data than signing up for a standard bank account!
Stegos will implement on-chain peer-to-peer trading, allowing users to buy and sell crypto using atomic swaps. (Stegos can’t do anything about the privacy problems of other crypto, but any surveillance trails will be broken once your crypto enters the Stegos ecosystem.)
#4 Private Apps
The Stegos app provides an integrated crypto experience, but we know you always need more: more functionality, and more choice between existing functionalities. For this reason, Stegos will have an on-chain privacy app store, with details of the apps stored privately on the Stegos blockchain. This way, you will be able to browse and access apps privately. You can also be confident that the apps you install are private and secure. To be listed on the Stegos privacy app store, the app must have a manifest which includes the following description:
- The URL used to download the app.
- Hash of the app bundle.
The TAC is a sandbox and virtual machine which runs plug-in apps written using HTML, CSS, and JavaScript. The TAC will keep the DApps contained while they run on your device, and will provide a simpler and more secure user experience.
