One of the most common questions we get in our online community is, “Why does Hypernet need to be built on the blockchain?”
It’s a fair question. There is such a frenzy surrounding blockchain technology that all you have to do is tack “blockchain” or “crypto” onto something else and people go crazy. Many blockchain projects have proven to be a lot of talk with little substance. We want to address this head-on and be clear about whyHypernet is built on the blockchain, and how it leverages the technology.
The world is running out of computational capacity, which powers innovation in the fields of climate modeling, cancer research, autonomous vehicle development, and many other technologies that will improve people’s lives. We want to ensure everyone has the computing power they need to innovate.
Without blockchain technology it would be nearly impossible to do this effectively. Here are four critical ways blockchain enables Hypernet:
1) Collateral to Protect Against Bad Actors
In order to discourage malicious behavior, both buyers and sellers must stake collateral to join a job contract. Buyers submitting a job to the network post the full cost of the job to the smart contract when it is created. Sellers joining a job contract must also stake collateral. The amount of collateral required by a seller can be set by the buyer. This economically incentivizes reliable performance, otherwise the sellers risk losing their collateral.
2) Reputation System
A public ledger provides the accountability and transparency needed to make the Hypernet marketplace healthy. Since transactions are recorded in a smart contract on an open ledger, buyers and sellers are empowered to build reputational capital that will allow them to thrive in the marketplace.
3) Network Currency
HyperTokens will serve as a mechanism for buyers to pay sellers for their compute time. Market dynamics will then govern the prioritization of projects on the network. A compute job is prioritized according to its HyperToken price agreed upon by buyers and sellers in the marketplace.
In the event that the Hypernet protocol must be changed in the future due to technical demands, the revision will be subject to a voting process. The number of votes wielded by any peer will be proportional to the sum of HyperTokens associated with their account.
5) Availability Rewards
There may be times when the number of available devices exceeds the number of active compute jobs. In this case, devices can still earn tokens by waiting in the Hypernet “lobby” and remaining online. Availability will be verified by other “lobby” occupants who ping each other to confirm that the devices are actually online, and ready to receive a job. Members who fail the challenge forfeit their collateral to the challenger.
We built Hypernet with the goal of solving problems and making the world a better place. Blockchain technology is not just a shiny accessory, but rather a critical and necessary component of accomplishing this mission.
If you have questions, or want to learn more, join the conversation going on right now in our Telegram community. And if you want to learn more about the technical details of Hypernet, checkout our whitepaper, too.