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29 November 2020

UMI Blockchain Ecosystem: Instant Transfers, Smart Contracts and Profitable Staking | Live Bitcoin News

UMI Blockchain Ecosystem: Instant Transfers, Smart Contracts and Profitable Staking | Live Bitcoin News


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The generation of blocks, and most importantly, their integration into the blockchain, is handled by trusted nodes – master nodes.

In the UMI network, master nodes are large authorized nodes that meet stringent speed requirements.

The original PoA model assumes that ordinary users cannot influence the operating mechanics of the system, and only trusted nodes have the right to confirm transactions and record them in the blockchain, and those usually belong to one organization or affiliated companies.

This factos increases the risks of network centralization, which deprives the cryptocurrency of its main value – decentralization – and makes it little different from other already existing traditional payment systems.

In order to avoid the risk of network centralization, the nodes in the UMI blockchain are divided into two types – master nodes that integrate blocks into the blockchain, and validator nodes that validate the blocks.

Only certain type of nodes can become master nodes – they include nodes launched both by the UMI team and their numerous partners from different countries, while any user can launch a validator node.

Validator nodes monitor the work of the master nodes, and if the suspicious actions detected, the unscrupulous masters are automatically disconnected from the system.

Along with the distribution of power among master nodes and validator nodes, another mechanism which is designed to prevent centralization is planned to be implemented in the UMI system in the future, – integration with Proof-of-Stake consensus.

The UMI blockchain will continue to operate on the PoA algorithm, but if any problems with the master nodes emerge, the system will automatically switch to the reserve PoS consensus.

Any UMI user who has installed a desktop wallet with a validator node will be able to launch a backup PoS node.

Moreover, staking works on a smart contract in the UMI system, which means that the staker does not need to keep the computer on all the time.

Thanks to its high capacity, the UMI network will ensure the smooth operation of large DeFi projects, decentralized exchanges (DEX) or decentralized applications (DApps), and users will not face unprecedented high transaction fees, as it happened before with the Ethereum network.

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