Blockchain technology provides an innovative new way to handle transactions over the internet.
Blockchain technology provides an innovative new way to handle transactions over the internet. Traditionally, a trusted third party, like a bank or financial institution, must facilitate and validate digital transactions. The involved parties rely on the institution to ensure the transaction is what they agreed upon and pay a handsome surcharge for it. Blockchain technology provides a decentralized alternative to this process. It eliminates the middlemen along with the standard accompanying fees. It may seem a bit mysterious, but really, it’s not so hard to wrap your head around.
In a blockchain, small containers called ‘blocks’ hold bundles of transaction data. All of the computers (nodes) participating in the blockchain’s Network analyze and validate this data. Once a block contains a specific number of valid transactions, it is officially created and added to the chain in sequential order. This means the last block on the chain always contains the most recent group of transactions. The system creates a unique alphanumeric code called a “hash” for the block. Each block includes its hash and the hash of the previous block on the chain.
Once validated and added, the transaction information in a block is unalterable. Any change to data within a block would alter its hash and the hash of each subsequent block. This breaks the chain. Each node on the Network has the entire history of the blockchain, so its accuracy and integrity are verified continuously. This is why blockchains are considered immutable. With these security advantages, it’s easy to see why we’ve chosen to integrate blockchain technology into the AXEL Network
It’s important to note our blockchain doesn’t store the actual data stored on the Network, only the transfer records. So, the content you share and store is always private. It’s the perfect balance of timestamped transparency and privacy.
Proof-of-Stake (PoS) Consensus: Secure, Sustainable, and Fast
When it comes to blockchains, there are generally two varieties; Proof-of-Work and Proof-of-Stake. The AXEL blockchain is Proof-of-Stake while others like Bitcoin are Proof-of-Work. We believe PoS offers distinct advantages:
- Reduced energy consumption. Proof-of-Work blockchains require network participants to use their computing hardware to solve complex mathematical equations for block validation. PoS blockchains only need contributors to stake a certain number of the blockchain’s tokens. Since power-hungry “mining” hardware isn’t running around the clock, PoS blockchains use significantly less energy – up to 99% less!
- Higher accessibility. Although PoS networks require a (sometimes sizable) initial stake, it usually pales compared to what someone would have to spend on competitive mining equipment. Most of the large PoW networks with desirable coins need specialized hardware to see beneficial results. This hardware can cost many thousands of dollars for a single unit, and you’re inevitably competing with dedicated mining farms with hundreds or thousands of such devices.
- Greater decentralization. Since the more popular PoW blockchains aren’t accessible to individual miners, large mining pools tend to dominate them. This means that a few factions control the majority of the blockchain’s hashing power. If some of these groups ever decided to band together, they could hold over 50% of the total hash rate, which could lead to the verification of invalid blocks. PoS blockchains do not have centralization issues such as these. Rewards for participation scale linearly to the amount staked.
We believe the Proof-of-Stake consensus method is the most sustainable, accessible implementation of blockchain technology. It offers irrefutable advantages while providing the same level of security. It’s why we chose to use it to back the AXEL Network.
A Blockchain Solution with Real Value
We didn’t create a blockchain to pump a worthless altcoin. We believe in the technology and utilize it across a range of commercial software products. AXEL is a legitimate company with tangible intellectual property. We are committed to engineering exciting technological solutions to today’s biggest security and privacy challenges. The AXEL Token is a component of our product line, not the product itself.
A Proof-of-Stake Utility Token
Our blockchain supports one of the fastest-growing Masternode networks in the world and uses the proprietary AXEL Token as fuel for data transfers. The AXEL Token is a Proof-of-Stake utility token that Masternode holders must stake to participate in the network.