It is a general misconception that all blockchains are decentralised. While blockchain is inherently distributed, decentralisation is a spectrum, and some projects can be more decentralised than others.
What is decentralisation in blockchain?
In decentralised structures, there is no centralised decision-making and control entity. Instead, a distributed network is in in-charge of governance.
The primary purpose of a decentralised network is to create a trustless environment – to reduce the need for trusting a centralised third party.
Additionally, decentralisation nullifies the intent of a central authority to exert control on the network.
Cudos is a Layer 1 blockchain, and Layer 2 community-governed compute network designed to ensure decentralised, permissionless access to high-performance computing at scale. But what makes Cudos decentralised? Let’s explore.
Active validator nodes
As Cudos uses the Proof of Stake consensus mechanism, the validators effectively replace the miners’ role in the Proof of Work blockchain network.For their
ainnet launch, the foremost priority was having a secure, distributed network of nodes. Just prior to mainnet launch, Cudos had 28 active validators joining for the genesis of mainnet who had collectively staked nearly 15,037,694 CUDOS on the network.
What was encouraging was a number of other validators who were lined-up to join immediately after the genesis. The validator activity can be seen in real-time on Cudos’ Block Explorer dashboard.
Cudos is building a scalable blockchain, and to realise their vision, they have partnered with many independent validators distributed globally to form a secure blockchain infrastructure.
These nodes are spread globally from Japan to the United States. The validators participate in staking, verify transactions, and maintain the network’s security.
Since their testnet, dozens of validators have participated in test runs, staking millions of CUDOS. This growing number indicates that the Cudos network has become more secure and decentralised.
What also makes a blockchain project decentralised is the number of independent, diverse developers contributing to the project.
Built on the Cosmos ecosystem using the Tendermint protocol, the Cudos blockchain network is designed with interoperability at its core.
The functionality is built using the Cosmos SDK, which integrates and interacts with other blockchains within the Cosmos ecosystem via IBC.
The Cudos blockchain network empowers developers to build and launch decentralised applications like decentralised marketplaces and exchanges, DeFi platforms, Metaverse infrastructure, and any other dApps or smart contracts.
Moreover, Cudos’ seamless interoperability will open doors for commercial deployment as developers can build dApps and other projects on Cudos’ native blockchain, powering the future of Web3.
Part of their plans for the Cudos network is to bring a pool of compute resources on-chain, allowing developers to leverage cloud computing directly from their smart contracts.
The Governance mechanism
An important way of guiding the direction of a blockchain project in a decentralised route is through on-chain governance. At Cudos, the development of our Layer 1 blockchain platform is community-driven.
Stakers of CUDOS distributed globally participate in active proposals and vote to shape the future of the network. Any decision or changes on the network is carried out after stakers accept and vote on the changes.
During Project Artemis, validators voted on a set of governance proposals in the block explorer. Following the launch of mainnet, validators can now participate in voting for more governance proposals going forward, using a similar mechanism.
The native token, CUDOS, acts as a governance token on the network. For any proposal to be considered for voting, a minimum of 50,000 CUDOS tokens need to be deposited by either the person who sent the proposal or the rest of the community.
In addition, 50% of the voting power needs to vote for the result to be valid. Otherwise, the proposal will be automatically rejected when the voting period finishes.
If 50% or more of the voting power cast their vote, they are counted. The proposal is passed if 50% of the votes (excluding abstentions) are ‘yes’ votes.
The voting percentages could vary post the mainnet launch if the community deems fit and decides to change this using this exact voting mechanism.
As decentralisation and sustainability is Cudos’ core ethos, the company has entered into strategic partnerships to realise its vision.
Decentralisation provides access to permissionless financial services with a smartphone. Cudos enhances financial inclusion through a partnership with Tingo, giving access to crypto to nearly 10 million Nigerians.
Users can earn CUDOS by utilising spare compute capabilities through Cudos monetisation apps. In addition, Cudos expanded its community reach to another 20 countries in Africa with their partner Kampay.
Another partnership with DeFi protocol MELD removes the reliance on financial institutions. Users can access decentralised financial services through MELDapp’s wallet integration into the Cudos crypto mining infrastructure through a simple user interface available on mobile and web wallets.
As Cudo Compute is building a global, decentralised cloud computing platform, Cudos joined hands with the edge solutions provider, blocz IO, to deploy and manage Cudos’ services globally and cater to the increasing cloud computing needs.
Furthermore, aligning on the principles of decentralisation and democratisation, Cudo Compute partnered with a Blockchain-Attached Storage (BAS) provider, Functionland, to support their decentralised storage networks for pictures and data.
Cudos has emerged as a game-changer by integrating blockchain in the cloud computing sector. Their platform relies on a distributed network of hardware to provide their spare cloud computing.
The decentralisation challenges the monopoly of centralised cloud service providers like Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform, Digital Ocean, among others.
With Cudo Compute, thousands of nodes spread worldwide will offer near-limitless computational capacity at a fraction of the cost of centralised cloud platforms.
Furthermore, the decentralised nature of this model ensures that no single entity will have control of the user’s private data, eliminating any chance of data monetisation.
The innovative architecture of Cudos to integrate interoperability and security with the Tendermint protocol eliminates scalability issues while retaining high decentralisation and enhancing security.