Cartesi’s role in the Security of the Staking ecosystem: a case study of the 150M $CTSI staked in Noether Network

Staking in crypto stands as a better alternative for earning more cryptocurrencies over the mining process of earlier crypto projects; think Bitcoin.

Staking refers to locking up your coins in a smart contract for a particular period, which gives you a chance to participate in the governance of a specific network while you earn extra cryptocurrencies in return.

Over time, the staking procedure has proven to be eventful and highly incentive for many, but it does come with its shortcomings. The locking period, fluctuations in prices of assets, security of staked assets, and so on are the problems facing staking ecosystems, which has led projects like Cartesi to think up better methods to apprehend and alleviate these problems.

Cartesi

Cartesi is a Layer 2 scaling solution that enables decentralized applications (dApps) to be developed across multiple blockchains.

It is a flexible project with the goal of removing unnecessary barriers for developers by allowing them to use a user-friendly Linux operating system.

As the world continues to dive into the crypto idea, some blockchains have run into scaling issues, resulting in network congestion and high transaction fees. Cartesi addresses blockchain scaling in several ways and integrates more advanced Layer 2 solutions like rollups and sidechains.

The Cartesi Core is the name of the project’s infrastructure and involves off-chain and on-chain components. Within this core is the Cartesi Node, which frees the consensus layers from the processing load while still maintaining security; the Cartesi Machine determines the computations that need to be reproducible and separates them from the ones that cannot be reproducible, thereby bringing speed and creating space for the system; and the Data Ledger which solves data availability problem.

Key Features of Cartesi include:

● Mainstream Programmability: Developers can create smart contracts and decentralized applications (dApps) by using mainstream software platforms that they are already familiar with. Cartesi empowers developers to choose the best operating system for every aspect of their dApps by transferring a significant portion of the complex logic to portable off-chain components.

● Scalability: Cartesi provides computational scalability, large-file data availability, and low transaction costs. All while maintaining the security of the underlying blockchain.

● Privacy Guarantees: In decentralized games, Cartesi makes it possible for players to hide their data and applications that run on sensitive data, ensuring that dApps maintain privacy.

● Cartesi is bringing developers to blockchain.

Since its inception, the Cartesi Network has continued expanding its network and adopting innovative strategies. Their native token $CTSI serves as an essential tool in this advancement.

Cartesi Token ($CTSI)

$CTSI is Cartesi’s native currency. It was created as a utility token to serve an essential role in the Cartesi ecosystem. $CTSI, for example, is used for staking and fees for processing data on the network. It also serves as a crypto-fuel for Noether. $CTSI can be staked to gain access to more $CTSI rewards, and stakers are also allowed to contribute to the network’s development.

Noether is Cartesi’s sidechain and is responsible for storing and accessing data that is only required for as long as they are needed, not permanent. In their most basic form, blockchains keep track of all activity that occurs on them. For most dApps, such an arrangement is both expensive and unnecessary. Getting rid of unnecessary data saves space and improves the blockchain’s long-term efficiency and Noether helps achieve this.

No-ether is also a phrase implying that Cartesi’s side chain data storage should be cheaper than Ethereum.

The primary function of $CTSI is to provide an incentive to the network’s users. For example, to further preserve the core of the Cartesi network, $CTSI serves as collateral and part of the arbitration mechanism, encouraging users to act right and avoid manipulating the network. Cartesi Side Chain users also require $CTSI to pay for data storage for their applications.

Cartesi’s Side Chain utilizes the Proof-of-Stake (PoS) consensus protocol. $CTSI rewards and transaction fees that dApps pay for adding new data to the network go to block generators. Descartes nodes are rewarded for completing verifiable and enforceable computation. Cartesi’s data availability protocol, Noether, also suggests using $CTSI to pay for data transfers and enabled delegated staking for $CTSI holders.

Noether’s Delegated Staking

Staking Delegation enables CTSI holders to stake their tokens in staking pools managed by third parties. It aims to increase the number of users and tokens on the network, thereby improving the security of the Noether Sidechain.

Individuals and institutions that run nodes will be able to easily set up and manage their pools, contributing to the network’s decentralization while also earning rewards for their efforts.

Additionally, holders of $CTSI will be able to delegate their tokens to preferred pools easily and obtain compounded rewards.

Benefits for Users

Holders of $CTSI holders would not need to set up and maintain node software or depend on custodial services. Furthermore, smart contracts secure the user’s principal, which cannot be lost or mismanaged by node runners or pools.

Users benefit from a native compounding feature with Cartesi’s staking delegation, which automatically re-stakes token rewards.

Benefits for Pool Managers

Node runners will be able to create a delegation pool and provide users with a staking service. It will help increase pool managers’ chances of receiving token rewards due to the higher amount of tokens staked, and they will also receive service fees each time the pool produces a block. The pool manager can choose between a flat fee on each block reward and a fee based on ETH gas used.

Conclusion

Cartesi is playing a well-established role in the security of the staking ecosystem. Their off-chain components enable them to provide top-notch services to stakers.

If you seek a secured staking system, the Cartesi network is recommended, as their network has proved to be reliable over time.

For more information about the Cartesi project, you can check out the links below:

Cartesi Website: https://cartesi.io

Twitter: https://twitter.com/cartesiproject

Blog: https://medium.com/cartesi

Telegram Community: https://t.me/CartesiProject

Telegram Announcements: https://t.me/cartesiannouncements

Discord (Development Community): https://discordapp.com/invite/Pt2NrnS

GitHub: https://github.com/cartesi

Reddit: https://www.reddit.com/r/cartesi/

Want to start staking your CTSI in a pool? Go to https://explorer.cartesi.io, it’s pretty easy to follow…

______________________<><><>______________________

Article Written by Helen IMAH — Cartesi Nigeria Ambassador