ODIN coin fundamentals

Categories Information

The ODIN coin holds several specific features. In this post, some of the distinctive ODIN coin features and ODIN wallet possibilities are covered. We will also explore some features which are on our roadmap for implementation in the future.

Proof of Stake (PoS)

ODIN is a so-called“Proof-of-Stake” (PoS) coin. The benefit of PoS over Proof-of-Work (PoW) mechanisms is that you do not need to have specialized gear or equipment. The power costs are hugely diminished compared to the PoW mechanism.

Staking has a very low-entry hardware threshold. Even a Raspberry Pi can fulfill the minimum requirement. The staking algorithm basically boils down to this:

Every coin represents a raffle ticket. For each new block that is minted, a new raffle is held and a new coin is drawn. The staking device which hosts the drawn coin gets to verify a block’s legitimacy, and in turn, receives a reward in the form of new coins for their service.

Generally speaking, the block time is one minute. We are looking to upgrade it to two minutes, in order to increase the scalability and lower the fault tolerance.

The staking rewards are lowered over time. At the time of writing, we are in the Valhalla phase. The reward scheme for stakers over the coming time:

Term Names Block Reward % Block Reward 
Valhalla Release 36% 34 ODIN
Year of Yggdrasil (2019) 25% ODIN
Year of Midgard (2020) 20% ODIN
Year of Nidhogg (2021) 15% ODIN
For the full reward scheme, see: https://github.com/odinblockchain/wiki/wiki/ODIN-Blockchain--Rewards

The benefit provided to the entire network by regular stakers is that they hold the entire transactional ledger, and assist in verifying the integrity of blocks and the (transactional) information they hold. As long as a single wallet is staking, the network is always accessible.

Masternodes

A big PoS feature in ODIN is “masternodes”. Masternodes provide some expanded functions over regular stakers, and as such receive a greater block reward.

Some examples of general features provided by masternodes:

  • Decentralization

The greater the masternode capacity, the greater the level of decentralization. The importance in decentralization is that the entire network is not in the hands of one or or a handful of entities. This makes it extremely difficult to manipulate the chain’s history and future.

Another benefit of decentralizing your nodes, or infrastructure, is that a single disaster could destroy an entire server park. Or a service provider could get hacked. A fire could break out. As a consequence, the network loses all connection and goes down. It will be unreachable. By having our masternodes in multiple geographical areas, we can guarantee uptime, regardless of what happens.

  • Powering the Blockchain’s Infrastructure

Because of the increased hardware requirements, masternodes have a higher throughput. They are able to provide several services which regular staking machines are incapable of. Some of these functions include the Zerocoin Protocol and SwiftTX. These will be explained in greater detail under their own headers.

  • Masternode Voting

Masternode operators have a larger stake in the network. The collateral required is 25,000 ODIN coins. This needs to be locked up, and as soon as it is removed, the masternode goes offline.

Because they hold a greater-than-average interest in the network and thus, the project’s success, they are given the ability to vote on the project’s developments in the future.

Anyone is able to put forward a proposal. As long as it provides benefit to the entire platform, they should be able to count on a number of votes.

  • zODIN (Using the Zerocoin protocol)

We are looking to implement zODIN transactions when Zerocoin protocol is stable on our testnet.

  • Your coins are destroyed, against a small fee which will be burned, i.e. removed from the total supply. This means the entire transactionary history of these coins end;
  • Zerocoins, or zODIN are created. These act as a voucher that can be redeemed at any time for brand new coins. This will also cost a small fee;
  • The zODIN may be sent to a recipient. The recipient is then able to redeem the vouchers for brand new coins, and it would appear as if they had come out of thin air. They are untraceable, as they have no prior history.

The entire Zerocoin Protocol is based on “Zero-Knowledge Proofs”, or ZKPs. Because of ZKP, you are able destroy your coins, but the network still remembers you still hold them. They can prove evidence of your balance to the other nodes by providing a specific answer. The rest of the network does not need to know how it knows the answer; simply knowing it is enough proof to verify your balance.

  • SwiftTX

The implementation of SwiftTX allows for near-instantaneous transactions throughout the network. Transactions are submitted to a random Masternode, which then broadcasts this transaction to a subset of Masternodes. This subset collectively reaches consensus and then broadcasts this to the whole network for addition to the blockchain at the next block.

Utilizing SwiftTX allows for transactions with the ODIN coin to be performed and confirmed in seconds. That is over 120 times faster than most other traditional methods used for blockchain transactions.

Masternode Rewards

Term Names Block Reward % Block Reward #
Valhalla Release 54% 51
Year of Yggdrasil 60% 15
Year of Midgard 60% 12
Year of Nidhogg 60% 9
For the full reward scheme, see: https://github.com/odinblockchain/wiki/wiki/ODIN-Blockchain--Rewards