Introduction: The idea behind ELAR

Our blockchain is based on Stellar. In addition to all the advantages of this blockchain, we have created tools to increase the attractiveness of the IT community and independent participants. This is implemented by a smart contract-based algorithm with significant incentives for each blockchain node if they follow a set of rules. Thus, we maintain a decentralized architecture, low fees, high transaction processing speed, high overall throughput, and significantly increase rewards for validating blocks from a special pool of tokens within the blockchain.

There is no classical mining in the blockchain (there is only a simple generation of new blocks and their validation) and all the main tokens of the project are issued once for the entire life of the project. But the company immediately transfers 85% of all tokens to the smart contract account, which will distribute rewards for block validation over the next 10+ years. The smart contract is fair and transparent. The company has no opportunity to take these tokens for itself or influence them in any other way - this is not provided for in the smart contract code. In other well-known projects, the overwhelming number of tokens remain in the company’s account. The only way to spend tokens is to distribute them as a reward for new blocks to those who took an active part in creating new blocks of the blockchain. This is performed autonomously by a smart contract, independent of company policy. The reward distribution formula is reminiscent of the reward policy in Bitcoin, where there is a limited number of tokens and halving occurs regularly. An important difference from Bitcoin: all participants receive a percentage of the income, and not just one lucky person who created a block.

To optimize the number of validators on the blockchain, there is a policy that provides financial incentives for chips to join together in temporary mining pools, rather than work alone, creating meaningless competition and unnecessary costs for equipment and electricity. Grouping is necessary to reduce the number of participants engaged in technical exchange of information during voting for a new block. Too many participants will reduce the rate at which new blocks are generated. If such conditions are met, the managing smart contract issues a much larger reward than if the participants tried to mine on their own. This scheme of trusting your money to validators exists in Ethereum.

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