Concordium’s Tokenomics Redesign: A New Dawn in Staking Part #1
The Concordium blockchain is undergoing a significant redesign in its tokenomics model to increase its appeal and attract a broader spectrum of Web3 players. The consensus protocol, ConcordiumBFT, is one of the cornerstones on which the new tokenomics is built. This is the first part in a series of articles regarding tokenomics changes which will be effective near the end of Q4 2023. The aim of the articles is to explain the new changes.The old consensus was cutting-edge when it was introduced. It employed a Nakamoto-style protocol for consensus, which was considered the gold standard at the time. It further improved this by introducing an additional finality layer to address the finalization challenge inherent in Nakamoto-style protocols. However, this protocol did not scale optimally as required by industry standards due to the probabilistic block time, which makes handling large volumes of transactions in a fast and efficient manner more cumbersome. In order to enhance both transactions per second (TPS) and confirmation speed, Concordium adopted a new protocol: ConcordiumBFT. In today’s blockchain landscape, BFT-style (Byzantine Fault Tolerance) protocols have gained prominence for their ability to provide high TPS while maintaining security and reliability. One of the key advantages of BFT-style protocols is that they inherently include finality in their consensus mechanism.
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