Why Corenetwork.io?

Decentralized apps are proposed in large numbers, but the current blockchain ecosystem is not ready to adapt to the needs of end-user applications with mass customization. In addition, the user experience of DApps is very poor and in no way conducive to average users. Slow block confirmations, high transaction fees, low scalability and poor user experience are some of the main obstacles to the mass adoption of blockchain applications. The following section explains the problems that exist in the current blockchain ecosystem and how the Core Network wants to solve them. Detailed technical specifications can be found in the other sections of the white paper.

Slow transactions

Blockchain transactions are usually very slow and have very low throughput. Most blockchain protocols based on PoW (Proof-of-Work) have a block size limit and it takes some time to generate a block. Each transaction also has to wait for multiple block confirmations due to potential chain reorganizations. PoS (proof-of-stake) based blockchains attempt to counteract these restrictions with a stakeout mechanism, but blockchains that achieve high throughput with PoS can do so at the expense of decentralization. These restrictions are often a necessary condition for public blockchains to ensure security and decentralization, where a block must be propagated through the network and validated by all nodes to reach finality.

The Corenetwork.io solves this problem by using a high throughput block chain, with consensus provided by a select group of block producers selected by a number of stackers for each checkpoint. It then uses a proof-of-stake layer to validate the blocks and to publish periodic evidence (Merkle roots) of the blocks produced by the block producers in the main Ethereum chain. This helps to achieve a high level of decentralization and at the same time maintain very short block confirmation times (<1.95 seconds).

Low transaction throughput

Public blockchains must maintain a certain time delay between the creation of neighboring blocks in order to ensure sufficient time for the block to propagate. In addition, the block size must be small to ensure that the block spreads quickly through the network. This means that the number of transactions in a given block must be quite limited.

Theoretically, the core network has the capacity for millions of transactions per second when using multiple side chains. The mechanism for this has already been demonstrated with the first proof of concept with the core token, and new chains can be added in due course.

Blockchain size

Each block in the blockchain and / or the calculation status in the case of a blockchain based on smart contracts must be validated by several nodes. Each node must maintain a copy of the state and the blocks. As the chain grows over the days, maintaining and validating the entire blockchain becomes difficult and leads to fewer nodes in public blockchains, which can jeopardize decentralization.

For the core network, the primary layer that provides decentralization can only store the blocks of the core chain from the previous checkpoint to the next checkpoint. All previous transaction / block proofs have been submitted to the main chain. This enables PoS nodes with extremely low accuracy, which can be operated in very inexpensive machines with little storage space.

Multiple micropayment channels with other off-chain solutions

Because Corenetwork.io uses a state-based similar architecture on an EVM (Ethereum Virtual Machine), no payment channels between two parties need to be opened. In fact, every valid Ethereum address is a valid CRX address, and a recipient doesn't have to be in the core chain to receive a payment. You only need mobile access to the CRXwallet if you want to access the payments for the main chain or if you want to spend it in the core network ecosystem.

Lower to no transaction fees

With the rapid growth of the blockchain ecosystem, new crypto assets are being created, transferred and sold, often involving multiple crypto tokens. Most decentralized apps also have their own token and their own economy. Online transfers are required to pay tokens for the services or to conduct transactions of any kind on blockchains. Each blockchain has a transaction cost structure. For example, Ethereum charges gas fees for every transaction.

The level of the fees is an important factor in stimulating validators and preventing certain types of security attacks such as DoS. However, due to the limited block size, there is the problem of changing fees (depending on the outstanding transaction pool).

The core network enables low-cost transactions by achieving economies of scale by executing a large number of transactions on the block producer layer, which ensures low costs, and then processing the evidence of the core blocks into a highly decentralized stack using the transactions main chain ( e.g. Ethereum) with a decentralized layer from PoS Stakers.

Bad usability

User interactions with DApps are often poor compared to their central counterparts. In order for the decentralization revolution to reach widespread use, the user experience of DApps with their centralized counterparts must be on par, if not better.

The Corenetwork.io development team is expected to work with various mobile and web browser integration tools and offer breakthrough protocols in this area. The Core Development Team will publish the designs and prototypes soon.

Presentation of the Core-Network

As briefly discussed in the section above, Corenetwork.io aims to solve the problems of the blockchain ecosystem by building a decentralized platform with a customized version. This enables fast and extremely inexpensive transactions with finality in a main chain. The currently functioning alpha mainnet of the Corenetwork.io works with Ethereum as the main chain.

The Corenetwork.io development team also builds a product ecosystem that includes easy-to-use mobile apps, desktop wallets, and browser extensions that provide a seamless experience for all users. It is envisaged that users can pay, transfer, or hold crypto assets without worrying about the complexity of the underlying system.

The Architecture

Since the core focus of the core network is on the acceptance of mass users, it is ideal that a deep dive into the technical architecture of the core network should begin from a user trip.

When a user transmits ETH or ERC20 tokens on the Ethereum network, they have to wait for the blocking confirmation, which is between 14 and 20 seconds. Even then, users have to wait for multiple block confirmations to ensure the transaction is final. Let's say you buy tea or pay for a service. With every transaction, you not only pay a high fee, but also wait for confirmation.
This serves as a deterrent to users who want to use the service.

In addition, during peak loads, a large number of transactions plug the Ethereum network, and gas fees are increased with each transaction to get faster confirmations. The core network is proposed as a solution to overcome these problems.

This is how the core network works: 

1. A user stores a cryptographic asset in the core contract in the main chain by providing proof of the remaining tokens as part of the swap process.
2. Fulfillment of the main chain by generating or uploading a crx file (currently only implemented with an Ethereum blockchain).
3. As soon as the tokens are deposited, they are confirmed in the main chain. The chips appear on the core chain.
4. The user can now broadcast CRX instantly to any user (core chain has faster blocks - about 1.5 seconds or less), and at almost negligible fees.
5. Whenever the user wishes, he can receive or send digital assets via his client-id or registered email address.

Die Alpha-Version des Mainnet ist am November 1st, 2019 online gegangen.