Revolution Populi has released the first level of blockchain solution that the founding team believes can be used as a clearinghouse for cryptocurrencies and traditional financial transactions.
The protocol reflects the delegated consensus guide used by EOS, which uses 21 block manufacturers. The Popoli revolution calls it the unanimous rdPOS, where the word “r” denotes chance. The number of block producers increases to 63, and 21 nodes are randomly selected as block producers for each round. The team believes that this setup allows for an increase in speed and at the same time maintains adequate decentralization.
Rob Rosenthal, the company’s CEO, spent 19 years at Goldman Sachs before founding this latest venture. The DeFi scene is believed to be a repeat of the financial crisis of 2008:
“I’ve seen this movie before, and I see DeFi markets just like what happened to CDS [standard switch]. It has to happen. It took a bad match to destroy the entire economic system.”
Rosenthal believes their decision could save DeFi from “some oblivion”. He said the solution has attracted a lot of interest from traditional economics and can also simplify record keeping and reduce the costs associated with it. Rosenthal said his team has developed a “decentralized clearinghouse,” which is, in effect, a “decentralized database of separate permissions” in which “everyone owns and controls their own data”:
“What an information service is two things. A simple accounting tool, and most importantly, a guarantee fund. […] On top of that, you get a second layer that can use that layer to store atom records.”
Additionally, this guarantee fund will provide ‘real profits’ to liquidity providers, which are generated from transaction costs related to trading settlements:
You can make a deposit and receive income when the transactions are completed, and by the way, this is the real profitability. This is similar to true profitability, which means that you get an income. Once the deal is settled and settled on that trade, there is a small transaction cost and transaction fee, so the fees are actually created. Shareholders receive some of these commissions. ”
Traditional financial firms often avoid public blockchains; Instead, focus on allowable options like Hyperledger Fabric, Corda, or Quorum – a special fork for Etheruem (ETH). The mistrust inherent in public networks stems largely from two factors: an alleged association with illegal activity and concerns about maintaining secrecy. However, Rosenthal thinks that’s part of the problem – you can’t combine the two terms decentralized ledger with centralized: “C” in CBDC stands for “central”, and “D” in DLT means distributed or decentralized. You can’t marry these two, at least internally. ”
He said many bankers with whom he discussed his style were receptive. In his opinion, banks have no problem with a decentralized “first team” as such, but they do have a problem with the government’s “first team” or a competitor. Rosenthal said that while their solution will be a decentralized public blockchain, some data must remain classified.