Describe the Proof-of-Authority (PoA) protocol
It was an idea of the co-founder of Ethereum, Gavin Wood. He proposed it in 2015 and it has become very popular in the past years due to its comparatively better scalability obtained at a relatively lower cost compared to the PoW mechanism. Its existence is a result of some lacking issues with the PoW and PoS system.
PoA does not need any high-level resources in its operation but only requires those that have been chosen to be validators to ensure the integrity of their nodes is intact. It offers incentives as a form of motivation to validators so they will be sincere in their operations and perform their duties towards the betterment and development of the network with their reputations and identities at stake.
Unlike the Proof of Stake consensus mechanism where validators stake tokens, in the Proof of Authority mechanism, validators stake their reputation. Therefore, block validations on the network are done by entities that can be trusted to be caretakers of the system.
The identities of the validators are mostly under threat of being stolen or misused, so this mechanism is most at times used by private blockchain networks. Its high scalability can be attributed to the restricted number of validators on the network.
How Does PoA Work
There is an automatic process by validators to assemble transactions in blocks using the software so they will not be required to frequently check their computers. But they are to sustain the good condition of their computers known as Admin sites
However, not everyone is selected as a validator. To gain the opportunity to be a validator, users must comply with these conditions;
• the identity of the user should be verified formally on the platform and also have the ability to be confirmed in a public domain
• The opportunity to be a validator should not be gained easily
• Finally, there should be regularity in the checks and processes for giving authority.
What motivates the validators of the PoA mechanism is their position gained as validators, when they are able to retain that position given them, they receive some incentives. To ensure that their reputations are not smeared, the validators are motivated to uphold good integrity in their transaction process. This secures the integrity of transactions on the network.
Where is PoA Used
One of the most notable blockchain platforms that makes use of the PoA system is VeChain
Also, there are tokens that make use of the PoA mechanism one of the most recognized ones is Polka dots. This coin is currently ranked 10th on coinmarket cap with a price of $24.99. This implies all dealings on the Polkadot platform make use of the Poof of Chain mechanism and are very safe.
Differences between PoA and PoW
There is a very vast difference between the PoA and the PoW in the sense that the PoW does not involve any form of staking. In the PoW, miners are to provide proof of solving a very challenging and complex mathematical puzzle in other to gain the opportunity to validate, update or get to a consensus on the next block of transactions.
Also, PoW requires the use of high-level computer hardware which consumes high energy to do the mining. This makes the PoA system more environmentally friendly in terms of energy consumption.
Differences between PoA and PoS
Taking a good look at them they are very similar. They both have validators that partake in a consensus mechanism. PoA is a different variant of the PoS but in the PoA system, the identity of the validator serves as the stake unlike in the PoS system where the stake is in monetary value such as tokens. Comparatively, the PoA system is more scalable and faster in terms of access control due to its restricted number of validators on the network.
Now let us see some advantages and disadvantages of the PoA mechanism
| Advantages | Disadvantages |
|---|---|
| Comparing it to other consensus mechanisms, it is a very energy efficient mechanism | it is mostly used in private blockchains and these blockchains requires permission |
| It has a high speed in processing transactions with | the reputation of the validator is the only thing that prevents them from engaging in malicious actions, they might receive better incentives and cause harm to the system |
| The chance of an attack occurring on the platform that uses the PoA mechanism is low since the validators are vigorously cross-checked to ensure they are trustworthy before they are given the authority | it is less decentralized as only those who are selected to be validators can partake in block validation |
| It has comparatively low transaction fees and is very scalable too. |
Who are the partners or sponsors of Socios.com?
When we visit their official website, https://www.socios.com/socios-partners we will see that the official global partner of the socios platform is LaLiga. However, there are other partners that are of other fields such as Gaming, Fighting, Football, Cricket, tennis, Basketball, Ice Hockey, Motorsport, and American football.
Football
When we go to the Football section, the following are the clubs and national teams that are partners of Socios;
Barcelona, Juventus, PSG, AC Milan, AS Roma, Atletico Madrid, Independiente, Galatasaray, Istanbul Basaksehir, Manchester City, Novara Calcio, Sint-Truidense VV, Trabzonspor, Club Universidad De Chile Young Boys , Apollon Limassol, Leeds Villa, Pohang United, Legia Warsawa, Fortuna Sittard, Goztepe, Alanyaspor, Levante, Argentina, Clube Atlético Mineiro, Valencia, Corinthias, Portugal, Arsenal, Inter Milan, GNK Dinamo Zagreb, Everton, Aston Villa Steelers, Flamengo, Samsunspor, Sao Paolo, Racing Club De Avellaneda, Bologna, Gazisehir Gaziantep, Napoli, New England, Santos Laguna, Atlas, As Monaco, Italy National Team, Palmeiras And Crystal Palace.
Gaming
When it comes to Gaming, Socios has NAVI, Heretics, OG, etc.
Fighting
Professional Fighters League and UFC are the partners in the Fighters Section
MotorSport
In the MotorSport section, the partners of Socios are Aston Martin Cognizant F1 Team and Roush Fenway Racing.
Cricket
The Cricket partners of Socios are Knight Riders, Royal Challengers, Caribbean Premier League championships, Punjab kings.
Basketball
In Basketball, socios has Oklahoma City Thunder, Charlotte Hornets, Miami Heat, San Antonio Spurs, Milwaukee Bucks, Indiana Pacers, Brooklyn Nets, Utah Jazz, Phoenix Suns, Atlanta Hawks, Memphis Grizzlies, Los Angeles Laker, Cleveland Cavaliers, Sacramento Kings, Orlando Magic, Los Angeles Clippers, Houston Rockets, Chicago Bulls, Minnesota Timberwolves, Detroit Pistons, Golden State Warriors, Washington Wizards, and Boston Celtics.
Tennis
Socios has only one partner in the Tennis section, and that is the Davis cup tennis tournament
American Football
Also, there is only one partner on the American football field, which is the New England Patriot club.
Then Finally, Ice Hockey
Here in the Ice Hockey section, we have the New York Islanders, Florida Puma, Washington Capitals, etc.
Download and install the Socios.com app. Create an account. Explore the application and describe its function. Show Screenshot (If necessary use a VPN if the app is not available in your country or region).
To download the Socios app, go to PlayStore and search for Socios
Click on Install to start the installation process
Wait for the App to finish installing and tap Open to open the App
Wait for the app to load
After the loading is completed, click on Get Started
Create a new account by entering your phone number where a security code will be sent to. Click on Send verification code
After the verification code has been confirmed, a registration form will appear for the user to fill. Start by entering a new username, email, read and understand the Terms and Conditions of the platform, tick the box, and tap register now.
A verification link will be sent to your email. Open your email account and tap the Verification link to verify the account.
Now my email has been confirmed successfully.
Now when we go back to the app, we will be given a brief tour of the platform.
To do further verifications click on the User icon at the top left corner of the screen
Click on verify your account
We have already verified our email, so we move on to verify our identity. We can also verify our Postal address and source of fund documents
Enter the document type, country issuing the document, and the number of that ID. After that, you will be required to take a picture of the ID and upload it to the account
Now that I have verified my email address, the Socios platform will give me a free SSU coin to celebrate that achievement.
Now let us Explore the App.
$CHZ
This option on the App, allows us to purchase CHZ coins and add them to our wallet
Market*
Here we can purchase fan tokens for the clubs we like
Vote
This Option gives us the opportunity to partake in voting on decisions to be made by the leader of our preferred clubs.
Socios Predictor
Here we are allowed to predict the future score of a match that will be undertaken by our club
Wallet
This option shows all available assets in our accounts and their total values.
Feed
This option shows current issues that are going on. Users get to see updates and also get fed with news
Rewards
If the user gains new rewards from the various achievements on the platform, the rewards get shown here.
Team Leaderboard
Users get ranked when they gain points through voting, predicting, redeeming, etc on the platform.
other leaderboards
Users will see rankings of other users in the various sections
Fan rewards
Users who get rewarded with tickets, digital collectibles, etc. will get to see them here
Purchase CHZ tokens with a minimum value of 10 USD from the verified account of your preferred exchange. Explain the process. Show the ATH of the coin and when it was reached. Show Screenshot
Purchase CHZ tokens with a minimum value of 10 USD from a verified account
I will be using my verified Binance account to perform the CHZ trade.
First, I will open the market and search for the CHZ/BTC pair. Click on a trade to start the trade
I will purchase CHZ tokens amounting to 0.00022581 BTC (10.52 USD). I then placed an order for 39CHZ (10.52USD) by clicking on by CHZ
The transaction was completed and I have my 39.55CHZ in my wallet.
The ATH of Chiliz and when it was reached
To see the ATH of Chiliz, I visited https://www.coingecko.com/en/coins/chiliz
And according to the site, the All-time high of Chiliz was reached on 13th March 2021 which was about 9months ago. The ATH was $0.878633 and has decreased about 69% to a current price of $0.272338
Its all-time low was also reached about two years ago on 28th September 2019. ATL was $0.00410887 which has seen an increase of 6532.9% since that time.
The coin is ranked 89th on the coingecko site with a market cap of $1,455,261,900 which is dominating about 0.06% of the market.
The coin also has a circulating supply of 5,344,064,580CHZ and a total and maximum supply of, 8,888,888,888CHZ. It currently has a 24-hour trading volume of $118,075,985.
Log in to the Chiliz Exchange and indicate the price in CHZ and the equivalent value in USD of the following Fan Tokens at the time of writing your assignment: FC Barcelona, Juventus, and Paris Saint-Germain. Show Screenshot.
To see the prices, we will first visit https://www.chiliz.net/ And at the time of this task, 18th December 2021 at 20:08 GMT the following are the prices of the Barcelona, Juventus, and Paris Saint Germain fan tokens.
As soon as the page is done loading, we will find the prices of fan tokens of the aforementioned clubs on the site without going through any menus.
Starting with Barcelona, we can see that the price of the fan token is 29.85CHZ with its equivalence in USD as $8.02. we can also see that it has declined about -1.67%
Secondly, we will go to Juventus, we can see that their token is priced at 30.79CHZ which is $8.27. it has also experienced a decline of -0.25 but it is comparatively less than Barcelona’s fan token decline
Finally, the Paris Saint-Germain token, this token is priced at 51.16CHZ which is about $13.74. this coin is currently experiencing a decline of 0.64%
We also have the Galatasaray fan token here. It is also priced at 15.57CHZ with its equivalence in USD at $4.18. it is also facing a decline of 1.39%
To find more detailed price information of the tokens, we can go to the exchange to find out more.
How is the value of a club or team's Fan Token affected before and after playing a match? If the result is a win, does the value go up? On the other hand, if you lose, will the price drop in the market? Reason your answer and provide at least one recent example, preferably in the week between Sunday 12 and Saturday 18 December
To find out how the matches played by the teams affect the price of their tokens, I will check the matches played by the teams and the prices of the tokens after the match
Today, Barcelona faced Elche and they won by 3 goals to 2 on Saturday 18th December
Juventus also played Bologna and won by 2 goals to nil on Saturday 18 December
Galatasaray also drew their match with their opponent, Istanbul Basaksehir on Saturday 18th December
Leeds United loss their match today against Arsenal
Despite the wins and draws by all the listed teams, they are all experiencing a decline in their prices. Barcelona won but the price is down by 1.67%, Juventus won but their price is also 0.25% down, Galatasaray fan token is also declining at 1. 39% lost despite the fact that they drew their match and finally, Leeds united lost their match and also faced a decline of 4.96%.
From the above-given data of the results of the matches and prices of the tokens of those teams. Every token of all the mentioned teams, whether they won, lost, or drew is experiencing a decline in their prices hence, the results of the match do not affect the price of the token. Another factor, that might affect the price of the fan tokens is the popularity and attractiveness of the match that is being played.
Conclusion
In this post, we started with the Proof of authority and I explained is a different form of the proof of stake consensus mechanism but with the PoA we stake identities and reputations instead of monetary tokens as in the PoS mechanism. The PoA is faster and more energy-efficient as compared to other consensus mechanisms. However, the system is less decentralized as there are a restricted number of validators allowed on the platform.
The blockchain system is also promising great growth in the future as we have other sectors and fields of the world such as sports, music, etc getting interested and more involved in blockchain activities.
references
https://www.socios.com/socios-partners/
https://en.wikipedia.org/wiki/Proof_of_authority
https://www.geeksforgeeks.org/proof-of-authority-consensus/
all screenshots unless stated otherwise were taken from
https://www.binance.com/en/trade/CHZ_BTC
https://www.coingecko.com/en/coins/chiliz
https://www.socios.com/
https://www.chiliz.net/
Cc.
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