Project Introduction
SLianGuaicemesh is a decentralized consensus protocol based on blockchain technology. It aims to achieve a highly decentralized, high-throughput, and highly secure blockchain network. The SLianGuaicemesh protocol uses a resource called “space-time” as its foundation, storing and verifying transactions through a mesh-like structure. At its core is a mathematically verified new consensus protocol that replaces Proof of Work (PoW) with Proof of Space-Time (PoST) and replaces the chain with a highly incentivized grid. This protocol allows for high distribution, frequent rewards for independent miners, and high throughput by parallelizing the release of multiple blocks to increase transaction processing speed. As a result, it builds a scalable, secure, and fair blockchain network, providing users with an efficient, decentralized platform for transactions and applications.
Author:
Elma Ruan, a senior investment researcher at WJB, holds dual master’s degrees in market/finance from Ivy League schools and has 5 years of WEB3 experience. She specializes in DeFi, NFT, and other tracks. Before entering the crypto industry, she worked as an investment manager at a large securities company.
1. Research Points
1.1 Core Investment Logic
The original intention of blockchain is to establish a decentralized monetary system. Although Ethereum has successfully transitioned from Proof of Work (PoW) to Proof of Stake (PoS), making PoS the mainstream consensus mechanism and considered a more environmentally friendly way to prove ownership. However, mining under the PoS mechanism requires miners to invest a large amount of capital to provide economic incentives to become honest participants who abide by the protocol rules. This effectively excludes the possibility of home users as potential miners. Instead, it makes the network more reliant on a few “whale” nodes that slowly but steadily control the network, leading to a monopoly of computing power. This also means that there is only one type of miner in the network – wealthy miners. On the other hand, the previous mainstream PoW mining method required a large amount of computing power, resulting in mining becoming more concentrated in a few mining farms with the necessary computing power, while also wasting a large amount of energy.
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In this context, the SLianGuaicemesh team has introduced a sustainable and environmentally friendly alternative – PoST. At the same time, SLianGuaicemesh combines the protocol with the physical scarce resource of storage space in the real world. This feature allows SLianGuaicemesh to overcome the new problems that arise when using PoS. By using storage space, anyone can participate at any time without having to accumulate a large amount of capital from other protocol participants, as anyone with a personal computer can widely use storage space. This feature of being able to join at any time greatly reduces the opportunity for collusion and censorship, and also makes the economy more fair, as token distribution is not limited to large mining farms but includes all participants.
Therefore, SLianGuaicemesh is a pioneering blockchain operating system designed to address the current centralization trend and scalability bottleneck in blockchain, providing support for global smart contract computers and permissionless cryptocurrency settings. Technically, it adopts Proof of SLianGuaice-Time (PoST) to replace traditional Proof of Work (PoW), achieving efficient energy use and environmental friendliness. At the same time, through the incentive-compatible protocol of mesh topology chain and layered directed acyclic graph (DAG), it ensures decentralized security and highly scalable network. In addition, the SLianGuaicemesh protocol lowers the user participation threshold, allowing the contribution of unused hard drive storage space to the security of the network, and promoting wide community participation. In summary, SLianGuaicemesh brings an innovative solution to the blockchain field, promoting the entire industry towards a more sustainable and environmentally friendly direction.
There are some potential challenges in SLianGuaicemesh mining. Firstly, the current version does not support multiple hard drives and multiple folders. Using multiple hard drives requires setting up multiple disks on a single machine and waiting for verification to be completed during the mining process, which may result in low efficiency. Secondly, as the number of mining participants increases, future computing power may grow rapidly, leading to increased mining difficulty and the possibility of faster initial mining but slower subsequent mining output. Finally, the SLianGuaicemesh protocol may increase communication and storage costs for miners to publish proofs within deterministic intervals. Although the protocol has attempted to address this issue, the communication overhead still needs to be practically controlled.
Current observations indicate that Proof of SLianGuaice-Time (PoST) consensus mechanism is widely regarded as a fair mining method. However, for the SLianGuaicemesh project, the token distribution plan originally scheduled for August 11th at 4 pm has not been implemented. In this mining-focused project, if token allocation is opaque or cannot be realized, it may cause a loss of a large number of users. Therefore, for this project, investors must continue to pay attention and carefully examine its progress, taking into consideration more comprehensive factors before making investment decisions.
1.2 Valuation
According to the official website, ecosystem participants and investors will share 6.25% of the total token supply. Considering the current total financing amount of $22.5 million, based on this proportion, the current valuation of the project is approximately $360 million.
2. Project Overview
2.1 Business Scope
The main business of the SLianGuaicemesh project is focused on the mining-related field. Its core goal is to use the Proof of SLianGuaice-Time (PoST) consensus mechanism to integrate the computing resources of home desktop computer users into a decentralized network, achieving resource consolidation. This network enables mining activities by effectively utilizing storage space and time. Mining plays a significant role in the SLianGuaicemesh project, as it is not only a key means of economic incentives but also provides security guarantees for the network. Through the PoST consensus mechanism, ordinary home users can participate in mining more conveniently and receive corresponding token rewards. This realization of the mining process makes it more user-friendly and easy to participate for a large number of users by fully utilizing the characteristics of storage space and time.
2.2 Development History and Roadmap
Date Event
2018-8-27 Publicly released the requirements and design draft of SLianGuaicemesh POET service
2018-9-03 Announced new financing and established partnerships with companies such as Metastable, Polychain, Coinbase, 1kx, Dekrypt, and Slow Ventures
2018-10-01 Completed the first version of the SLianGuaicemesh wallet, including detailed use cases and user experience
2018-11-19 Preliminary design of the global state and transaction processor of SLianGuaicemesh, with the primary goal of allowing users to transfer tokens on the network
2018-12-1 Implemented the Poet core APlgRPC client and server
2019-01-01 Released the HARE protocol
2018-02-11 Implemented the basic CLI wallet; added the definition and flowchart of the HARE protocol
2019-02-17 New SLianGuaicemesh application repository goes live
2019-03-01 Integrated the first implementation of the incentive system based on tokenomics, with no inflation rules
2019-03-18 SLianGuaicemesh App – allows checking the local node status without unlocking the wallet
2019-04-01 Activated the transaction process for SLianGuaicemesh CORE (full node + POET service)
2019-04-15 VRF qualification integration for HARE protocol
2019-05-01 Updated POET and POST to more efficient Merkle Trees
2019-05-13 Implementation of POST protocol
2019-06-01 Implemented XDR serialization for TXapi calls; changed default names for wallets and accounts
2019-07-08 SLianGuaicemesh local testnet available for developers, supporting OSX and Linux
2019-07-15 Initial release of SLianGuaicemesh application (wallet + miner) with final visual design
2019-09-09 GO-SLianGuaicemesh client. Added event infrastructure and event collector sidecar for future statistics and block grid analysis; focused on issues with stabilizing SLianGuaicemesh Virtual Machine (SVM) codebase
2019-10-01 SLianGuaicemesh enters China
2019-10-28 Decided on the names of tokens, nodes, and other key SLianGuaicemesh components
2019-12-09 Refactored the SVM codebase
2020-02-01 SLianGuaicemesh testnet application running on Windows, OSX, and Linux
2020-02-15 Started development of SVM wallet application
2020-03-01 Successfully soft-launched Tweedledee – the first SLianGuaicemesh open testnet
2020-04-01 Integrated svm-gasbox into SVM runtime; planned advanced documentation for SVM integration into goSLianGuaicemesh
2020-05-01 Major updates to the storage layer of SVM 0.2 (SLianGuaicemesh Virtual Machine based on design review meetings)
2020-05-15 The hosted nodes have been moved to a more efficient new infrastructure and a new network (id 115) has been launched.
2020-06-15 Another version of the SLianGuaicemesh application was released; a new mini product website was launched, which includes information about the SLianGuaicemesh project roadmap, SLianGuaicemesh coin units, visual design, and some additional specifications.
2020-07-01 Development of the Ledger application for SLianGuaicemesh tokens has begun, providing enhanced functionality for token owners.
2020-08-01 SLianGuaicemeshCLIWallet and applications will add Ledger support; completed the initial mini specification for wallet-only mode; finalized the initial specification for the SLianGuaicemesh binary transaction format to be implemented across the platform.
2020-09-01 Completed the merge of API code.
2020-09-15 Completed the construction of desktop and mobile network dashboards for the SLianGuaicemesh network; released the SLianGuaicemesh Web application and Web service mini specification.
2020-11-01 Added an automatic build system for all platforms through github actions.
2020-11-15 SVM added tracking for manually allocated resources. This added feature should make debugging/avoiding memory leaks easier.
2020-12-01 Preliminary research on transaction structure and processing has been completed.
2021-01-01 Released SLianGuaicemesh 0.2 transaction format and validation algorithm.
2021-01-15 Simplified SVM transaction and receipt encoding.
2021-02-01 Established a new project board for tracking pipelines.
2021-02-15 Refactored the Runtime component.
2021-03-01 Launched a new platform documentation website that includes the SLianGuaicemesh protocol documentation, fully searchable and version controlled.
2021-05-01 Significant upgrades to the synchronization code; completed the redesign of the SLianGuaicemesh multi-signature insurance library for SLianGuaicemesh 0.3; improved error message display for upcoming network screens in the pipeline.
2021-05-15 GPU-POST library can work with Vulkan compute GPUs such as AMD and Apple M1 chips without the need for users to install large Vulkan SDKs.
2021-06-01 Researching a “unified block” design to overcome many challenges associated with transaction selection in the grid.
2021-07-05 Completed the unified account SMIP, modeled after EIP-2938 of Ethereum, with many key changes to support the SLianGuaicemesh protocol and data structures.
2021-09-23 TweedleDev 205 is online and currently undergoing internal testing.
2021-12-06 Released Smapp 0.2beta0.
2022-02-16 Implemented basic automatic update mechanism.
2022-05-02 Completed implementation of sorting the Mempool and conservative state tracking of pending transactions; implemented P2P layer support for DNS entry points.
2022-07-03 Completed the design of Hare authentication rounds and began implementation work; conducting research on SVM and account/template/transaction models; the latest version of Smapp enters the final testing phase; developing a new API for grid partition state and reward estimation, which will be further updated to use the latest transaction format.
2022-08-17 SMapp released version 0.2.6. In terms of protocols, improvements were made to the elasticity of the PoET server. As for Smapp, multiple versions were released, including major changes and fixes. The first phase of Hare simulation was completed, optimizing the HARE protocol and making progress in parameterizing the mainnet.
2023-03-05 The hash function was changed from SHA256 to BLAKE3 to improve processing speed. In terms of protocols, development of PoST and optimization of the HARE protocol were carried out, including rewriting Rust for improved efficiency. More refined layer processing was implemented in Go-SLianGuaicemesh. Smapp achieved improvements in cross-platform accessibility. A new test network was launched. The research team formulated the vision for SLianGuaicemesh 2.0 and discussed remaining important topics for SLianGuaicemesh 1.0.
2023-04-17 Update on: 1. Product and roadmap 2. Release schedule 3. Testnet progress 4. Cultural vision
2023-06-20 Testnet-05 launched; a third-party security research company was hired to help audit the SLianGuaicemesh code and conduct security testing before release.
2023-07-14 SLianGuaicemesh officially launched, mainnet live.
2023-08-04 In terms of protocols, migrated to libp2p with a distributed hash table, reducing the difficulty of PoST proof on the mainnet. After the launch of SLianGuaicemesh mainnet, the proof difficulty will be increased again. Improvements were made to node functionality on SLianGuaicemesh, including event streaming and Smapp display enhancements. Research was conducted on phased PoET, delegation K2pow, and distributed validation. Progress was made in adding a full virtual machine to SLianGuaicemesh.
Future vision:
1) Mobile devices: The project aims to make SLianGuaicemesh run on various devices, including smartphones, for profitable and sustainable mining at home. The goal is to make SLianGuaicemesh even capable of running on smartphones, although this will take some time to achieve, there are no fundamental barriers.
2) Comprehensive virtual machine: The project aims to give SLianGuaicemesh a comprehensive virtual machine, not limited to a limited virtual machine like Bitcoin or just the EVM. The plan is to launch with a small set of hard-coded “precompile” smart contracts in the initial version, and gradually expand to achieve first-class smart contract virtual machine capabilities.
2.3 Team situation
2.3.1 Overall situation
SLianGuaicemesh is an Israel-based company aiming to build a blockchain mesh operating system, improving blockchain technology with a new consensus protocol – Proof of Space and Time (PoST). PoST can run on any desktop computer and aims to resist expensive ASIC miners. The SLianGuaicemesh team consists of professionals from various backgrounds, currently showcasing 27 members on LinkedIn, covering fields such as computer scientists, cryptographers, mathematicians, engineers, and designers.
2.3.2 Founders
Co-founder Aviv Eyal
Aviv Eyal is dedicated to building a free, open-source blockchain operating system and fair cryptocurrency. As an entrepreneur and technical expert, he is committed to innovation, user-friendly consumer-grade digital products, and services with excellent user experience. He has extensive experience in building high-quality full-stack systems and founding consumer media startups.
Co-founder and CEO Tomer Afek
Tomer Afek was a co-founder and Chief Marketing Officer of SHOWBOX, successfully transforming the brand and distributor into a digital video giant. In addition, he has extensive experience in online advertising and investment, having served as CEO of ConvertMedia.
2.3.3 Core Members
Board Member & Advisor Raphael Ouzan
Raphael Ouzan is the founder and CEO of A.Team, a team-building platform. He also co-founded BlockNation with Apollo CEO Mark Levin, focusing on investing in web3. In addition, Raphael Ouzan is an Honorary Officer of the Israeli Defense Forces’ S Technology Department and was named by Forbes as one of the outstanding talents under 30.
Chief Development Engineer Yaron Wittenstein
Yaron Wittenstein holds a Bachelor’s degree in Computer Science from the Israel Institute of Technology. He is responsible for building decentralized programmable cryptocurrencies based on space-time proofs and has held positions as a software architect and backend lead in previous work experiences. In addition, he served as a software developer in the Israeli Intelligence Corps.
2.4 Financing
SLianGuaicemesh has completed over two rounds of financing, raising a total of $22.5 million from leading cryptocurrency investment institutions, including Metastable, Coinbase, Dekrypt, Slow Ventures, Polychain, LianGuairadigm, Dragonfly, Electric Capital, Greenfield, Arrington XRP Capital, BRM Capital, gumi Cryptos Capital (gcc), and 1KX. The latest fundraising took place on December 27, 2021, with Leland Ventures and Kosmos Ventures becoming the most recent investors.
3. Business Analysis
3.1 Target Audience
1) Desktop computer users: The primary target audience of the SLianGuaicemesh project is desktop computer users, especially those with sufficient system resources and internet connectivity. The project is designed to allow ordinary home users to participate in the mining and consensus process of blockchain, thereby achieving decentralization and security of the network. Through its Proof of SLianGuaice-Time (PoST) consensus mechanism, SLianGuaicemesh allows ordinary users to participate in mining by contributing storage space and time resources without the need for special hardware devices.
2) Mining farms and large-scale miners: Although the project focuses on ordinary household users, mining farms and large-scale miners can also participate in SLianGuaicemesh. Mining farms can integrate multiple computers and hard disk devices to improve mining efficiency and profits. They can utilize scalable computing and storage resources to enhance the security and stability of the network.
3) Distributed system developers: Developers interested in blockchain and distributed system development can participate in the development and innovation of the SLianGuaicemesh project and contribute to the development of its ecosystem.
3.2 Business Categories
The business of SLianGuaicemesh can be divided into the following main categories:
1) Distributed consensus protocol: The core business of SLianGuaicemesh is a distributed consensus protocol based on the Proof of SLianGuaice-Time (PoST) consensus mechanism. This protocol aims to integrate the computing resources of household desktop computer users into a decentralized network, achieve network consensus through storage and verification of space resources, and provide high security and decentralization for blockchain networks.
2) Mining (Smeshing): The mining process in the SLianGuaicemesh protocol is called “Smeshing”, which is a process where participants provide computing resources to support consensus and obtain token rewards. Household desktop computer users can participate in Smeshing, become nodes of the network, and provide security and consensus support to the network.
3) Ecosystem development: SLianGuaicemesh focuses on ecosystem development and collaborates with developers, communities, and ecosystem partners to promote the operation of more applications and tools on its network. Ecosystem builders can receive token rewards to support their contributions.
3.3 Business Details
1. PoST (Proof of SLianGuaice-Time)
Definition: The resource used by the SLianGuaicemesh protocol is spacetime. The project uses Proof of SLianGuaice-Time (PoSTs) to turn spacetime into a publicly verifiable resource. At a high level, PoST is a proof that nodes allocate a certain amount of space S over a given time T to participate in the mining process. The spacetime resource of a node is calculated as S · T. Roughly speaking, PoST consists of two stages: an initialization stage (performed once), in which miners “commit” to filling the space S with data, and an execution stage (repeatedly performed), in which miners prove that they are still storing the data. The time component of the spacetime resource is the elapsed time between consecutive proofs – if the interval between initialization (or the previous execution stage) and the latest execution stage is T, the proof shows that the miner consumed a spacetime resource of S · T. Unfortunately, PoST cannot actually prove that the miner stored data between two proofs. It proves a slightly weaker statement: “either the miner stored the data, or the miner reconstructed the data”. This is inevitable because miners can always rerun the initialization process to recreate the data. The project handles this issue by explicitly parameterizing the initialization cost in PoST. The initialization cost is important because it determines whether storing data or recomputing is a rational choice within the interval between two proofs, based on the relationship between the initialization cost and the storage cost. If the initialization cost is lower than the cost of storing data, rational users would prefer recomputing – in this case, the protocol remains secure but essentially becomes a proof-of-work-based protocol. Since the actual costs of storage and CPU in the real world may fluctuate, the project must be able to adjust the initialization cost to ensure that storing data remains a rational choice. Additionally, in the SLianGuaicemesh protocol, the project solves the problem of maintaining a fixed communication complexity by increasing the interval between consecutive proofs as the number of miners increases. This means that the cost of storing data between consecutive proofs will increase linearly with the number of miners. Even if CPU and storage costs remain constant, the initialization cost needs to be adjusted eventually to accommodate this growth.
In addition, the spatial component of PoST can be publicly verified—it only depends on the content of the messages sent in the PoST protocol—while the time component is different: it requires validators to measure the time elapsed during PoST execution. The project achieves this by transforming PoST into a fully “non-interactive,” publicly verifiable primitive (NIPoST) by adding a proof of elapsed time (PoET) in the construction. Intuitively, miners will use PoET to prove in a publicly verifiable manner that a time interval of length T has passed between PoST executions. To verify that miners have used S·T spacetime resources, one only needs to check if the PoST is S space and if the PoET is T time. Since the project does not have a direct way to prove that time has elapsed, the project uses sequential work as a proxy for elapsed time (similar to sequential iterative hashing). The basic idea is that it is extremely difficult to compute the hash sequence of iterations at a speed faster than the fastest commercially available CPU, especially if the project uses a hash function (such as SHA256) for which mainstream CPU manufacturers have invested considerable resources to accelerate the hash computation. (This is in contrast to increasing the total work throughput, which can be achieved through parallelization at a cost that is only linear in the desired throughput). Therefore, in this paper, the project can interchangeably use PoET and PoSW (proof of sequential work).
SLianGuaicemesh is based on the “Tortoise and Hare” framework of Meshcash. However, there are several key design choices that make SLianGuaicemesh fundamentally different from Meshcash:
• PoW (proof of work) “binds” already consumed CPU work to specific tasks. Existing PoW-based protocols (including Meshcash) fully leverage this property; it ensures that adversaries cannot reuse already completed work to create “alternative histories.” In contrast, PoST (proof of spacetime) does not bind already consumed spacetime resources to challenges (because the project hopes to be able to reuse stored data for multiple challenges to reduce energy costs). This means that adversaries can create “syntactically valid” blocks with reused “old” spacetime, and the protocol must be able to handle this situation.
• Solving PoW follows a random distribution of time. This feature is crucial for secure random sampling of miners in Meshcash (as well as other PoW-based protocols). In contrast, SLianGuaicemesh replaces the lottery with deterministic criteria that must be met: every miner who consumes sufficient spacetime resources is eligible to generate a block (with some randomness as to when the block is generated). Because eligibility is not random, SLianGuaicemesh is more effective in preventing grinding attacks compared to other protocols. A grinding attack refers to an adversary attempting to increase the probability of being selected by performing additional work that does not conform to the protocol’s requirements.
Overall, the SLianGuaicemesh protocol uses Proofs of SLianGuaicetime (PoSTs) to transform spacetime resources into verifiable resources, and constructs non-interactive PoSTs through Proof of Elapsed Time (PoET), highlighting the differences from the Meshcash framework and how miner eligibility is deterministically determined to enhance the security and sustainability of the protocol.
2. Process:
In order to ensure that the SLianGuaicemesh network is protected from attackers taking over, the system adopts a mechanism based on smeshers who allocate space over a period of time. To be eligible to participate and receive corresponding rewards, individuals must prove that they indeed possess the required storage capacity over a period of time.
SLianGuaicemesh smeshers must publish an activation transaction every two weeks in order to prove their eligibility to participate in the next Epoch. The activation transaction includes cryptographic proof that the author can access the allocated storage space both before and after a verified time span.
Once the smeshers complete the allocated storage initialization, they will generate an initial Proof-of-Space-Time (PoST). This only proves that the author accessed the PoST data at an uncertain point in time, and is then provided time verification by Proof-of-Elapsed-Time (PoET).
PoET consists of two main parts: the membership tree, which shows when a given smesher can access its PoST data before PoET work, and the sequential work proof, which shows that a certain amount of sequential work has been performed – SLianGuaicemesh uses this part as an approximation of time.
Once the sequential work proof is completed, the smeshers can use it as a task for another PoST, thus forming a chain that proves they accessed the data before and after the sequential work.
ATX (Activation Transaction) plays a very important role in the SLianGuaicemesh protocol, as it activates the miner’s ID and proves that they possess a certain amount of storage space and time resources, making them eligible to participate in mining and other network services. PoET is a consensus algorithm in the SLianGuaicemesh protocol used to verify that participants have waited for a certain period of time. The waiting time proven by PoET is used to calculate the voting weight of ATX, so the longer the waiting time, the higher the voting weight.
The simplified diagram below illustrates the structure of ATX:
3. Smeshing Loop:
In order to avoid generating, transmitting, and storing two PoST proofs in each ATX (activation transaction), all PoET registrants except for the first one include a reference to their previous ATX in their ATX. Since the previous ATX contains a PoST and is included in the PoET membership tree, the smesher (i.e. miner) is able to prove that they have accessed the stored data before PoET work begins.
To ensure that smeshers have enough time to receive PoET, generate PoST (which may take several hours), generate an ATX with two proofs, and register for the next PoET round before the Cycle Gap, there is a time interval. There is a 12-hour “Cycle Gap” between PoET rounds, which should be sufficient for most smeshers to complete this process. In order to prevent smeshers from allocating more storage space than they can generate PoST for within 12 hours, the SMApp (SLianGuaicemesh application) will run a benchmark test and inform the user of their maximum recommended allocation during the smeshing setup process.
Key Points to Obtain Rewards
The SLianGuaicemesh rewards (consisting of transaction fees + block subsidies) are distributed to smeshers (i.e., miners) who can timely provide qualified block proposals for Hare and are included in the final collection to generate blocks. These rewards are allocated based on the relative weight of each proposal, which is derived from the weight of ATX of previously published smeshers.
A qualified ATX includes two PoST proofs (or a reference to the previous ATX and a single PoST proof), combined with PoET proof, collectively proving that smeshers can access data both before and after a certain period of time (two weeks).
The following chart details all the required steps from initialization to obtaining rewards:
4. HARE Protocol
The HARE protocol is the consensus protocol used in the SLianGuaicemesh framework, aiming to achieve fast and secure consensus in the participant network. Here is a detailed explanation of its characteristics and functionalities:
1) Multiple proposers: Unlike early consensus protocols, the HARE protocol adopts multiple proposers instead of designated ones because parties in the SLianGuaicemesh framework need to agree on a set of concurrent blocks.
2) Voting round functionality: The HARE protocol uses a verifiable random function (VRF) to select proposers in each round. This is a standard approach to ensure fairness and randomness in the selection process.
3) Gossip Network: The HARE protocol operates on a Gossip Network, which is a communication network where participants exchange information through random connections. However, the result of the protocol is recorded in the form of miners’ votes in the blocknet, and the execution of the protocol itself does not need to be stored.
4) Tortoise protocol: The HARE protocol is designed to guarantee security, but it may face risks if the underlying assumptions are compromised. To address this issue, the protocol adopts a modified version of the Tortoise protocol. This modification allows the protocol to reach consensus from any initial state by randomizing the votes of honest parties in cases of small but coordinated voting margins.
5) Adjustable parameters: The HARE protocol has several adjustable parameters that can be set by protocol designers. These parameters include layer interval, HARE distance, epoch length, average layer width, bad beacon delay distance, NIPoST initiation difficulty, and confidence threshold. These parameters can be adjusted to optimize the performance of the protocol and adapt to different network conditions.
6) Syntactic correctness: For a block to be considered syntactically correct in a layer, it must satisfy specific conditions. These conditions include having an active node ID, being eligible to generate blocks in that layer, all blocks in its visible mesh have been received and are syntactically correct, and all transactions included in the block are syntactically correct.
7) Preferred patterns and implicit voting: The HARE protocol ensures that preferred patterns eventually appear in older layers, which are voting patterns that most subsequent blocks follow. New honest blocks treat old blocks’ votes in the same way as the most recent preferred pattern, allowing implicit voting of new blocks against old blocks using the same preferred pattern.
In summary, the HARE protocol combines multiple proposers, VRF, Gossip Network, and Tortoise protocol to achieve fast and secure consensus within the SLianGuaicemesh framework. It incorporates self-healing mechanisms and adjustable parameters to adapt to different network conditions and ensure the validity of blocks.
5. SLianGuaicemesh Application Requirements
– Minimum requirements for running nodes:
CPU: Intel or AMD x86-64 or 64-bit ARM, including Apple Silicon (but excluding Raspberry Pi), with a memory of 1GiB or more.
Operating System: Windows 10/11, MacOS, Ubuntu 22.04+, or Fedora 36+.
Storage: Minimum of 50GiB of available disk space.
Speed: A consistently online and unrestricted internet connection with a minimum download speed of 5 Mbps and upload speed of 1 Mbps.
– Additional requirements for smeshing (mining) apart from running nodes:
To support more than the minimum smeshing space allocation or allow uninterrupted use of the computer during node operation, it is recommended to have the following:
A hard drive capable of sustained sequential read speeds of at least 100MB/s.
A multi-core CPU manufactured within the past 8 years.
6. Costs and Warnings
Running nodes requires a computer that can operate continuously 24/7, which will incur energy costs corresponding to the user’s local electricity rates.
- Additional Equipment
If the user’s computer meets the minimum requirements, there is no need to purchase additional equipment to run the SLianGuaicemesh full node. In fact, the project discourages such purchases as it cannot guarantee a return on investment. SLianGuaicemesh is best run based on available hard drive space the user already possesses.
- Updates
Users can expect semi-automatic or fully automatic updates. Please update to the latest version when notified.
- Network Health
Users can check the project’s network status page to understand the network’s health condition.
- Potential Issues
Bandwidth Limitation: In the early stages, SLianGuaicemesh may require more network bandwidth than expected. A stable network connection and 10Mbps bandwidth are sufficient to be an active participant in the network.
Internet Service Providers (ISPs): Some ISPs may not be friendly towards peer-to-peer (p2p) traffic. Users experiencing such issues can use the “disable-reuseport” option in the configuration.
3.4 Industry Space and Potential
3.4.1 Classification
Blockchain consensus refers to the process of achieving consistency on transaction state and order within a distributed network. Different blockchain projects use different consensus algorithms to ensure network security and trustworthiness. The following are several common types of blockchain consensus:
1) Proof of Work (PoW): PoW is the consensus mechanism used in early blockchain projects like Bitcoin. In PoW, miners need to solve a puzzle by continuously trying to find the correct solution to create a new block. This requires significant computing power, and the miner who solves the problem first gets the right to create the block and receives the corresponding reward.
2) Proof of Stake (PoS): PoS is a consensus mechanism that serves as an alternative to PoW. In PoS, token holders can participate in the creation and confirmation of blocks as “validators.” The chance of being selected as a validator is proportional to the amount of tokens they hold, meaning that the more tokens they have, the more likely they will be chosen.
3) Delegated Proof of Stake (DPoS): DPoS is a variant of PoS that involves electing certain nodes as “delegates” to participate in the validation process. Delegate nodes are responsible for generating blocks and confirming transactions, and other token holders can vote to elect delegates. DPoS can enhance transaction speed and scalability, but it may also lead to centralization issues.
4) Proof of Authority (PoA): PoA is a centralized consensus mechanism where specific authoritative nodes validate transactions and create blocks. This mechanism is suitable for private chains and consortium chains, but it may lack decentralization and security in public chains.
5) Proof of SLianGuaice-Time (PoST): PoST is a consensus mechanism based on storage space and time, used in projects like the SLianGuaiceMesh. Participants prove their participation in the network by storing data instead of through computation. This mechanism is more environmentally friendly and suitable for projects that utilize space resources.
6) Proof of Burn (PoB): In PoB, users need to “burn” (destroy) a certain amount of tokens to gain participation rights. This mechanism is used to measure user input and interest but is less commonly adopted.
3.4.2 Market Size
Although SLianGuaiceMesh belongs to the PoST consensus field, the exact size of this submarket is difficult to calculate accurately due to the limited popularity of PoST in the cryptocurrency industry. However, overall, SLianGuaiceMesh is more closely related to the computing power competition field, and the research report will present some data related to computing power competition.
Background
In December 2010, Czech programmer Marek created the world’s first mining pool, “slushpool.” This large-scale collective mining farm gradually became the main development model in the industry. With subsequent developments such as the professionalization of mining machines, the listing of mining companies, and the financialization of computing power, the mining industry has continued to grow, leading to the emergence of a large-scale commercial landscape. As of April 2022, the total market value of 21 listed Bitcoin mining companies exceeded $15 billion. Before the Ethereum merger, the market value of the Ethereum mining machine market alone reached $5 billion.
From a Time Perspective
Using Bitcoin as an example, let’s look at the growth of Bitcoin’s network-wide computing power over a three-year cycle:
From 2009 to 2011, Bitcoin’s network-wide computing power increased from 10 GH/s to 10 TH/s, a growth of approximately 1000 times;
From 2012 to 2014, the computing power increased from 20 TH/s to 300 PH/s, a growth of 15,000 times;
From 2015 to 2017, the computing power increased from 1 EH/s to 14 EH/s, a growth of 14 times;
From 2018 to 2020, the hash rate increased from 40 EH/s to 160 EH/s, an increase of about 4 times;
From January 2021 to January 2023, the hash rate increased from 200 EH/s to 255 EH/s, an increase of about 1.3 times;
By comparison, it can be found that the network’s hash rate has been growing since the birth of Bitcoin, although there may be temporary decreases in hash rate due to market shifts, regulatory policies, and other reasons, the long-term trend has always been growth.
From a spatial perspective
In 2013, after experiencing fierce competition among mining machines, domestic mining accounted for over 70% of the total hash rate of Bitcoin. However, starting from October 2020, the proportion of hash rate in China started to decline. According to data from the Cambridge Alternative Finance Center, from October 2020 to May 2021, the proportion of hash rate in China dropped from over 70% to 44%. A few months later, the proportion of hash rate further declined to zero, while the hash rate in the United States experienced a significant increase, rising from 17% in April 2021 to 35% in August of the same year. Subsequently, the United States surpassed China to become the world’s largest source of Bitcoin hash rate.
The decline in the proportion of hash rate in China from October 2020 to May 2021 was mainly due to the crowding-out effect caused by the large-scale expansion of overseas mining companies. In the same year, two American mining companies, Riot Blockchain, Inc. and Core Scientific, respectively ordered 30,000 and 17,000 S19 series mining machines from Bitmain. Large-scale mining farms were also built in many parts of the United States.
On May 24, 2021, Bit Mining announced a partnership with a company in Kazakhstan to invest 60 million RMB in the construction and operation of a new mining farm.
On July 27, 2021, Bitmain announced the separation of its mining pool brand, Antpool, stating that it would carry out this part of the business overseas. It also partnered with Enegix to equip over 50,000 Antminer S19 Pro mining machines in the mining farm in Kazakhstan. In addition, many large and medium-sized mining companies such as Huobi, Binance Pool, and Canaan Creative have transferred their business overseas.
By early 2022, this migration of miners was basically completed, and countries such as the United States, Russia, and Kazakhstan became the largest recipients of hash rate migration. The once-largest mining pool, Antpool, was also acquired by the American mining company Foundry. This largest migration of hash rate caused a drop of over 43% in the global hash rate of Bitcoin. After the migration was completed, mining pools with Chinese backgrounds, such as AntPool, F2 Pool, and ViaBTC, quickly recovered their hash rate.
After the regulatory concerns eased, the domestic hash rate of Bitcoin started to recover partially. According to statistics from chainbulletin, the current proportion of Bitcoin hash rate in China is approximately 21.1%, second only to the United States. Some industry insiders speculate that certain miners may use overseas proxy servers to circumvent domestic monitoring, engage in small-scale secret mining in remote areas, or even use off-grid power generation to evade power monitoring.
The Post-PoW Era
In 2022, the total electricity consumption of the Bitcoin network is about 107 TWh, which is equivalent to the annual electricity consumption of the Netherlands with a population of 17 million. In terms of global rankings, it can be ranked 33rd. The carbon footprint generated annually is about 43.28 metric tons, which is equivalent to the carbon footprint generated annually in Hong Kong. In addition, due to the upgrade and iteration of mining machines, Bitcoin generates up to 43,000 metric tons of electronic waste per year.
In the trend of green environmental protection, the shift of Bitcoin mining towards clean energy has become an inevitable choice. More and more mining farms are choosing renewable clean energy sources such as solar and wind power for mining. According to a report released by the Bitcoin Mining Council (BMC) last year, as of June 2022, clean energy accounted for 66.8% of the energy consumption in Bitcoin mining. Although the authenticity of this proportion is yet to be confirmed, the trend of Bitcoin mining using clean energy has gradually become widely accepted in the industry. This shift can effectively alleviate the policy and public opinion pressure faced by the mining industry.
The energy consumption and environmental issues of mining are not only due to malicious mining and high energy consumption, but also rooted in the PoW mechanism itself. However, in the rise of the new generation of public chains, the PoS (Proof of Stake) consensus mechanism has begun to dominate, successfully avoiding the energy consumption and environmental issues faced by Bitcoin. The PoS consensus mechanism not only brings scalability and other development advantages to public chains, enabling Ethereum to successfully transition from PoW to PoS, but also aligns with the current trend of environmental protection.
In addition, the transition from PoW to PoS has also introduced new areas in the mining industry. Whether it is liquidity mining or ZK mining machines under the trend of Zero-Knowledge Proofs, they have opened up new frontiers for the mining industry. In this context, the PoST consensus mechanism of SLianGuaicemesh is more environmentally friendly and sustainable. Through technologies such as proof of space and time and proof of elapsed time, it reduces energy waste and achieves efficient blockchain ecology, taking an important step towards the green development of the industry.
3.5 Business Data
Social Media Data
Twitter: 13,142 followers
Discord: On the Discord platform, SLianGuaicemesh has 16,863 members, with daily active members ranging from 1,500 to 2,000. This indicates active interaction and discussion among community members. Discord is a platform that facilitates close connections and community sharing.
YouTube: Although the number of subscribers is about 1,000, the views per video range from 500 to 1,000, demonstrating some level of attention and attractiveness of the video content.
Operational Data
As of August 13, 2023, the SLianGuaicemesh network has entered its second epoch, successfully minted and confirmed 8,876 blocks, and the current number of active miners has reached 2,383. However, on August 11, when the project team was addressing a vulnerability issue, only one account received 477 $SMH tokens. However, the vulnerability has been fixed now, and a total of 1,486 accounts have received a reward of 348,150 $SMH tokens.
3.6 Project Competitive Landscape
In today’s blockchain field, the PoST (Proof of SLianGuaice and Time) consensus algorithm leads a new wave of technology. In this wave, the Chia project, as a classic example of the PoST consensus mechanism, and the highly anticipated KasLianGuai project in terms of computing power competition, are both significant players that cannot be ignored. Although these two projects pursue different goals and characteristics, their core concepts revolve around the computing power competition. In this project introduction and comparison, we will delve into the consensus mechanisms, technical architectures, and performance in terms of scalability and decentralization of Chia and KasLianGuai.
3.6.1 Project Introduction
- KasLianGuai
KasLianGuai is a decentralized and fully scalable Layer-1 based on the GHOSTDAG protocol. Unlike traditional blockchains, GHOSTDAG does not create isolated blocks in parallel but allows them to coexist and be ordered in a consensus manner. While supporting a high block rate, KasLianGuai maintains the highest level of security provided by a proof-of-work environment. Its design is faithful to the principles embedded in Bitcoin by Satoshi – proof-of-work mining, isolated state formed by UTXOs, deflationary monetary policy, no pre-mining, and no centralized governance.
- Chia
Chia Network is a cryptocurrency project founded by Bram Cohen, the creator of BitTorrent, in 2017. It aims to build a green and environmentally friendly cryptocurrency and plans to develop an improved blockchain and smart transaction platform, as well as enterprise-level applications. Chia Network has developed its own smart contract programming language called Chialisp, which retains the advantages of the “UTXO model” while introducing the general functionalities of the “Ethereum Solidity model,” enabling more powerful features such as multi-signature, atomic swaps, authorized recipient wallets, transfer recovery, limited wallets, paper wallets with delayed recovery, digital identity wallets, and Chia Coins (similar to ERC20 tokens). On March 18, 2021, Chia officially launched the Chia 1.0 mainnet, with the token named XCH.
3.6.2 Project Comparison
Chia, KasLianGuai, and SLianGuaicemesh are three different blockchain projects. They have some similarities in terms of consensus mechanism, technical implementation, mining methods, and other aspects, but there are also significant differences.
Consensus Mechanism:
Chia: Chia Network adopts a novel consensus algorithm called “Proof of Space and Time” (PoST). This consensus mechanism aims to utilize disk space and computing time for blockchain security and validation.
KasLianGuai: KasLianGuai uses the GhostDAG/PHANTOM protocol, which is a proof-of-work and DAG-based consensus mechanism. It can achieve high throughput and low-latency transaction confirmation.
SLianGuaicemesh: SLianGuaicemesh uses its own unique consensus protocol based on Proof of Space and Time (PoST) and mesh technology. It aims to achieve a highly decentralized, high-throughput, and secure blockchain network.
Technical Implementation:
Chia: Chia has implemented unique mechanisms for Proof of Space and Time, achieving consensus and mining through the use of unused hard drive space and verifiable delay functions.
KasLianGuai: KasLianGuai uses the GhostDAG/PHANTOM protocol to build a block DAG structure for fast confirmation and high-throughput transaction processing.
SLianGuaicemesh: SLianGuaicemesh’s technical implementation includes mesh technology, Proof of Space and Time, and a unique consensus protocol, aiming to create a decentralized, high-throughput, and secure network.
Mining Methods:
Chia: The mining process of Chia involves creating “plots” that occupy hard drive space and participate in block generation through Proof of Space and Time.
KasLianGuai: The mining process of KasLianGuai involves proof-of-work mining, generating block DAGs using the GhostDAG/PHANTOM protocol for fast transaction confirmation.
SLianGuaicemesh: The mining process of SLianGuaicemesh involves using Proof of Space and Time, mesh technology, and a unique consensus protocol to validate transactions and generate blocks.
Other Aspects:
All three projects focus on providing higher throughput and faster transaction confirmation speeds to meet different application requirements.
Their consensus mechanisms and mining methods have similarities in some aspects, such as utilizing disk space, computing power, or proof of work for consensus.
In terms of technical implementation and project goals, Chia focuses on environmental friendliness and green mining, KasLianGuai focuses on providing high-throughput transaction processing, and SLianGuaicemesh focuses on decentralization and security.
Although these projects have some similarities, their unique characteristics and technical implementations give each of them their own positioning and advantages in the blockchain field.
3.7 Token Model Analysis
3.7.1 Token Supply and Distribution
Token Symbol: $SMH
Total Token Supply: 2.4 billion
Token Distribution:
93.75% (2.25 billion) generated gradually as block rewards, with block rewards being distributed according to a reward distribution plan in each block
6.25% (150 million) reserved as team rewards, with no initial release and gradually released according to an unlocking plan starting one year after the genesis
From a broader perspective, the reward distribution follows an exponential decay function that has been in effect for nearly 2,000 years. Team rewards will start unlocking one year after the genesis and will be fully unlocked within three years.
Token Release Chart
After the 277th year since the genesis, the layer reward decreases to below 1 SMH, so the total circulating supply remains relatively constant after the time period shown in the chart, although this process will continue until the 1,893rd year before it comes to a complete stop.
Reward Distribution
Smeshers participating in block generation will receive block rewards. These rewards come from two sources: newly minted coins (known as block rewards) and transaction fees collected in the blocks.
The number of new coins generated per block gradually decreases according to an exponential decay function until it eventually reaches zero. After that, smeshers will only receive transaction fees collected in each block as rewards.
The cumulative total reward amount for each layer is controlled by the following formulas:
To calculate the number of new coins in a given layer, the project will calculate the cumulative rewards of the current layer and the previous layer, and then subtract the latter from the former.
Reward Unlocking Plan
At the genesis, the rewards allocated to team members, SLianGuaicemesh company, and investors involved in protocol development and implementation will be minted and distributed to a special type of custodial account, but cannot be transferred until unlocked.
In the first year after the genesis, no reward funds are available for use. Only after one year, 25% of the reward coins will be unlocked from the custodial account and can be withdrawn. Subsequently, rewards will be unlocked layer by layer in a linearly increasing manner until fully unlocked in the fourth year after the genesis.
The design objective of this scheme is to ensure that at any given time, the total amount of unlocked team rewards remains below the cumulative block rewards level.
Analysis
The table below shows the transaction volume after each round of decline for $SMH.
3.7.2 Token Value Capture
1) Block Rewards and Miner Incentives: The $SMH token is the basis for block rewards in the SLianGuaicemesh network. This reward mechanism encourages miners to participate in block generation, ensuring the security and reliability of the network. Each block generates new $SMH tokens as a reward for miner contributions, and also serves as the driving force behind the operation of the SLianGuaicemesh network.
2) Team Rewards Unlock: 6.25% of $SMH tokens are reserved as team rewards. These rewards are gradually released according to a specific unlocking plan. Development team members, SLianGuaicemesh company, and investors supporting protocol development will gradually receive their rewards for the successful development of the ecosystem, providing momentum for the long-term healthy development of the project.
3) Token Scarcity and Gradual Supply Reduction: The total supply of $SMH tokens is 2.4 billion, and over time, the generation of new tokens will gradually decrease. This is achieved through an exponential decay function to ensure the scarcity of tokens. This scarcity may create more demand in the market, leading to a gradual reduction in token supply and potentially attracting investor interest.
4) Network Usage and Transaction Fees: In the SLianGuaicemesh network, tokens can be used to pay transaction fees and service fees. Users need to use $SMH tokens to participate in various activities in the network, thereby promoting the use and demand for tokens.
3.7.3 Core Token Demand
1) Miners and Validators: The block rewards and miner incentive mechanisms attract miners and validators to actively participate in the SLianGuaicemesh network. By contributing computing power and validating transactions, they can obtain newly generated $SMH tokens.
2) Development Team and Investors: The team reward unlocking plan provides long-term incentives for development team members, SLianGuaicemesh company, and investors. The gradual release mechanism of these rewards encourages them to maintain long-term cooperative relationships with the project, ensuring the continuous development and optimization of the protocol.
4. Preliminary Valuation
4.1 Core Issues
Does the project have a reliable competitive advantage? Where does this competitive advantage come from?
1) High Decentralization: SLianGuaicemesh is designed as a highly decentralized system. Each independent miner can frequently receive rewards, eliminating the need for collective mining. At the same time, household users can provide space resources, increasing the possibility of individual miners participating in the system.
2) Non-Competitive Protocol: SLianGuaicemesh is designed as a non-competitive protocol, which means that honestly generated blocks are always recognized as valid. This prevents powerful miners from obtaining disproportionately high rewards and makes the protocol more aligned with incentive mechanisms.
3) Self-healing: SLianGuaicemesh can self-heal even in the face of attacks that violate security assumptions. Even if the system is constantly attacked by a constant fraction of space resources controlled by attackers, honest participants will reach consensus when the security assumptions are met again.
4) Security guarantee: As long as the space resources controlled by adversaries do not exceed a certain fraction of the system, the SLianGuaicemesh protocol is secure. At the same time, the protocol can also self-heal when the network synchronization assumption is temporarily violated.
5) Permissionless consensus: SLianGuaicemesh is a permissionless consensus mechanism that allows new participants to join the network without the approval of current token holders. This increases accessibility and lowers participation barriers.
6) Environmentally friendly and efficient: SLianGuaicemesh uses Proof of SLianGuaice-Time (PoST) as its underlying consensus mechanism, which is more energy-efficient compared to traditional Proof of Work (PoW) protocols. It also utilizes existing and usually underutilized storage devices, making it easier for home users to participate in mining.
These advantages are achieved through the design and implementation of the protocol and mechanisms, rather than solely relying on other factors.
What are the main variable factors in the operation of the project? Are these factors easy to quantify and measure?
1) SLianGuaicetime resources: This refers to the amount of storage space allocated to miners for participating in the mining process within a certain period of time. It is measured as the product of allocated space and elapsed time.
2) Timing of message reception: In the SLianGuaicemesh system, the system’s state is a deterministic function of the content of the mesh and does not depend on the timing of message reception. This feature ensures that new users can reach consensus on the correct state as long as they can communicate with an honest miner.
3) Network synchronization: The SLianGuaicemesh protocol assumes reasonable network synchronization, where every message seen by honest parties at time t will be seen by all honest parties at time t + δ. The specific value of δ depends on measured network latency.
These factors can be quantified and measured to some extent. For example, the amount of sLianGuaicetime resources allocated by miners can be measured in terms of storage capacity and time. Network synchronization can be measured by analyzing the timing of message propagation in the network. Adversarial control can be estimated by monitoring miner behavior and analyzing their allocation of sLianGuaicetime resources. However, precise quantification and measurement of these factors may require further research and analysis.
4.2 Main Risks
1) Mining efficiency and verification delay: The current software version does not support multiple hard drives and multiple folders. Therefore, if multiple hard drives are to be used, a solution of mounting multiple disks on a single machine and using command-line software for mining (referred to as “P-mining”) is needed. Once the initial P-mining configuration is done, the mining process requires waiting for verification to complete until entering the next epoch. In addition, mining efficiency is related to the speed of the hard drive, the data size of P-mining, and the initial nonce value set. Therefore, in some cases, mining may be limited by factors such as hard drive speed, resulting in lower efficiency.
2) Future computing power growth risk: As more and more mining participants join the SLianGuaicemesh network, the computing power may increase rapidly, especially in the presence of other large-scale mining activities. This may lead to a rapid increase in mining difficulty, making subsequent mining more difficult. In addition, there may be a situation where the initial mining is relatively fast, while the subsequent mining output is relatively slow.
3) Communication overhead issue: The SLianGuaicemesh protocol requires miners to publish proofs at determined time intervals, which may increase communication and storage costs. Although the protocol has addressed this issue, it is still necessary to ensure that communication overhead remains within a practical range.
Please note that these risks may affect the efficiency and profit potential of SLianGuaicemesh mining, and careful consideration should be given to the investment and expected returns during the mining process.
5. References
1. https://SLianGuaicemesh.io/ SLianGuaicemesh official website
2. https://drive.google.com/file/d/18I9GPebWqgpvusI1kMnAB9nayBbL-1qN/view?pli=1 Project whitepaper
3. https://testnet.SLianGuaicemesh.io/#/wallet?id=checking-your-smesh-balance Testnet tutorial
4. https://KasLianGuai.org/about-KasLianGuai/ KasLianGuai official website
5. https://www.chia.net/about/ Chia official website
6. https://rettig.substack.com/p/in-the-beginning-SLianGuaicemesh-genesis In The Beginning: SLianGuaicemesh Genesis Special Edition
7. https://www.odaily.news/post/5184540 A Brief History of Cryptocurrency Mining: Mining Machine Upgrades and Computing Power Transition
8. https://SLianGuaicemesh.io/blog/requirements-for-SLianGuaicemesh-rewards/ Background of Proof of Space and Time
9. https://SLianGuaicemesh.io/start/#costs-and-warnings Start Smeshing
10. https://sLianGuaicemesh.io/updates/ Monthly update information
11.https://SLianGuaicemeshcalculator.com/coinbase/sm1qqqqqqzmt7dcrfccd4n3c76q3jfnnx0fj8uuy7q22laey SLianGuaicemesh data panel
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