Before it is possible to solve the scalability problem, it is critical to understand the origin of the dilemma. Blockchains in the past have been intentionally limited. This limitation is not a typical technical bottleneck, it is intentionally added for reasons related to the economics and risk.
Proof of Performance is pioneering the concept of True Decentralization. This critical concept contains the first principles of consensus design, the fundamental understanding of how Decentralization works. The revolutionary approach not only solves the scaling problem but offers the most secure possible blockchain.
True Decentralization is a critical concept to understand about blockchains and decentralized technology in general. It’s all about getting the blockchain to fully pay for itself, not just make blocks.
Ultimately, in a Truly Decentralized context, the most trusted and most used blockchain is the most secure. By leveraging a peer-to-peer method of collaterization, blockchains multiply their security by the number of people that trust the chain with their liquidity and use the chain to transact. However, this security is ultimately limited on other chains which can only focus on storage, but which cannot deliver a high volume of transactions. By getting past this hurdle, Litheum is capable of supporting a single high-value chain of blocks. Also, because Litheum does not rely on sharding, all fees and liqudity are concentrated on a single, dense chain, which is the most secure possible.
A Truly Decentralized blockchain or application must incentivize 100% of its functionality with its consensus game.
By ensuring that a blockchain is 100% incentivized, we can safely allow blocks to grow with demand. As people use the chain more and more, this generates more fees which are in-turn given to the Runners who in-turn deploy more infrastructure that makes the network both more secure and more performant.
