(1.) Describe the Proof-of-Authority (PoA) protocol.
PROOF OF AUTHORITY.
Proof of authority is a consensus protocol focused on the identity and reputation of the block validators. The consensus protocol is similar to the proof of stake consensus algorithm but here, instead of staking money in the project, one desiring to be a block validator stakes his identity as a collateral to act honestly.
The consensus protocol is proposed by Gavin Wood, the Etheruem co founder in 2015. The consensus mechanism furnishes the idea that once a person's or company's reputation is at stake, they will do their best to redeem it by acting honestly.
Because the reputation and identity of the individuals running the participating nodes is what is required, it means that the platform will only work with few trusted persons with high reputation. That therefore makes Proof of authority a consensus mechanism best suited for enterprises and private networks that has interest in building their own Blockchain that is closed in it's nature and will not encompass all user participation.
WHY PROOF OF AUTHORITY?
The first crypto currency project Bitcoin was born with a consensus algorithm which we know as proof of work POW. The consensus mechanism requires high computational equipment as a requirement to mine blocks. Investing in such high equipments and payment of electricity bills are serious issue for miners. Another drawback is that the algorithm is less scalable. To solve those rising issues, proof of stake was proposed which instead of investing in high equipments, a block validator can stake the token of the project as a collateral in other to participate in validating blocks. It is believed that once his money is at stake, the block validator will ensure the Network's safety and progress.
However, the motivation to act for the interest of the project is relative not to the amount of stake made to a project but to the value it holds for the investor. Take for example, if an investor staked in a huge amount of money, but it is just 1% of his total life holding and another staked in a comparatively lower sum but it means 50% of his life worth, the energy and motivation for the two men to act on the interest of the project can not be equal. Although the later man's stake seem lower but his effort will be higher whereas the other man though his stake seems higher his commitment and motivation may not be as the second. Therefore the guarantee that a validator acts on the project's interest might not be determined by the amount of stake but the worth of the stake.
To improve this lopsidedness that may be noticed In the proof of stake and encourage every node to have same level of commitment to the project, proof of Authority is proposed so that every participating node stake what truly holds same value for all - identify and reputation.
HOW IT WORKS.
There are three basic creteria for proof of authority, although platforms may differ partly.
VALIDATORS REAL IDENTITIES. The validators must make public their real identities confirming it on-chain. A verifiable proof of their identities with valid documents.
STAKE MONEY AND REPUTATION: A person or company desiring to be a validator must have the willingness to invest both his money and put his reputation at stake.
A STANDARD TO APPROVE VALIDATORS. There must be a set of rule which applies to all, to which all validators must be subject to. These rules are not made easy, more and more rules are made to ensure that the individuals involved will show commitment to the project.
PROS AND CONS.
One of the advantages is that the protocol is scalable having fewer nodes as validators. Another advantage is that it instills trust amongst users in the platform since the identities of the validators are known and they are traceable.
One disadvantage is that the protocol is not much decentralized. It is more like a distributed centralized platform. Another disadvantage is that having the identities of the nodes may lead to manipulation if the authorities choose to force the hands of the platform.
(2.) Who are the partners or sponsors of Socios.com?
Socios.com is a D2D (direct-to-consumer) platform that makes use of Blockchain technology to make provision of tools needed by leading sporting organizations to engage their global fans and monetize their fanbase.
The company has a global reach having their offices established across various locations. In 2021, the firm has opened new regional headquarters in Madrid, Sao Paulo, Istanbul and Buenos Aires. Promises of extending to North America are in place.
PARTNERS AND SPONSORS.
Socios.com has a global partners and sponsors. On their website page, you may notice list of partners encompassing series of football clubs, gaming platforms, racing, fighting, Motorsports, Cricket, Tennis, American Football, Ice Hockey. There are over 100 notable sporting organizations.
On the football, Clubs like Fc Barcelona, Valencia Manchester City, Inter Milan, Paris Saint-Germain, Juventus, AC Milan, Atlético Madrid, Arsenal including national teams like Argentina and Portugal national soccer teams.
On the cricket, we can see clubs like PunJab Kings, Knight Riders etc
On the Motorsports you will see Aston Martin, Alpha Romeo etc
Basket ball partners.
Ice hockey partners
American Football partners.
(3.) Download and install the Socios.com application . Create an account. Explore the application and describe its functions. Show Screenshots (If necessary use a VPN if the application is not available in your country or locality).
I made a download of the socios.com app, installed it. Once at the first page, you will be greeted with the get started button.
Next, will require a phone verification. However, the verification was not successful due to the app do not work in my area.
I tried using VPN, but the mobile number has to be in the country to which one sets the VPN to. I do not have a foreign mobile number and therefore could not complete this task.
(4.) Make a purchase of the CHZ token for a minimum value of 10 USD from your verified account of the exchange of your choice. Describe the process. Indicate the ATH of the coin and when it was reached. Show Screenshots.
Through my binance exchange, I made an investment of chiliz token worth $15.
I already have 15 usdt, what I did was to convert it to Chz.
- I went to my binance app and located the "trade" area.
- I selected spot because I want to buy on the spot.
- I selected the pair chzusdt
- I chose the " buy" option.
- I chose "market" trade instead of limit so as to buy instantly.
- I choose 100 percent ratio because I want to invest all $15 worth.
Then I clicked on buy.
As see in the image by the left I purchased 54 unit of Chiliz token at approximately $15 USD.
CHILIZ ALL TIME HIGH.
According to Coingecko record, Chiliz all time high was reach on march 13, 2021 when the coin sold at the peak of $0.878633 USD.
Ever since, the Chiliz token has gone on a downward trajectory. As at today, CHZ is sold at $0.0272122 USD.
(5.) Enter the Chiliz Exchange and indicate the prices in CHZ and their equivalent in USD of the following Fan Tokens at the time of writing your assignment: FC Barcelona, Juventus and Paris Saint-Germain. Show Screenshots.
On the Chiliz exchange, fan tokens are paired with Chiliz. You can see the price listed in both Chiliz and USD.
Price of Fc Barcelona token as at today in Chiliz is 29.82. it's price in usd is $8.081.
Price of Juv token in Chiliz is30.51.
The equivalent in USD is $8.274.
Paris Saint-German Fc.
The price of psg token as this time of writing
is 50.87 in Chiliz
It is equal $13.79 in USD.
(6.) How is the value of a club or team's Fan Token affected before and after playing a match? If the result is a victory, does its value go up? On the contrary, if it suffers a defeat, does its price go down in the market? Reason for your answer and present at least one recent example, preferably in the week between Sunday 12 and Saturday 18 December.
What actually affects a price of a coin much is it's demand and supply, and a same applies to fan tokens. Another factor in this case could be the largeness of active fans, when the Dan's are many, so is the demand.
This week, several teams has taken turns in playing their regular matches.
I keenly watched to see what would happen to the price of ACR token as AS Roma play against Atlanta. AS Roma has performed great in their last past matches securing the fifth position on the table. On the other hand the ASR has been on a downward movement.
Today December 18, AS Roma won Atlanta with a whopping 4 - 1 victory. Yet nothing changed about the token movement.
Another interesting example, is the "never work alone" Liverpool. On Thursday, December 16 2021, it was a deciding victory against Newcastle United. The England giants had a 3 -1 win.
Actually, there was a price peak on December 15th and 16th but then a decline afterwards. The peak might not necessarily be caused by the match, I'd it were to be so, we should not experience a decline afterwards.
The aim of socios.com is to bring sports fans closer to their clubs and vice visa. Fans can actively participate and contribute in most ways through pools available on socios.com site. Clubs on the other hand benefits by monetizing their fanbase. Active fan will buy their club token in other to make some contribution and by so doing contributing to the growth of the club.
Chiliz exchange provide avenue where fans can turn their coin into chz and further exchange it into other coins or Fiat money. Chiliz and socois.com partner with most sports clubs, to create a token for the fans. These tokens has the capability of being traded since the price fluctuates. The Chiliz exchange lists all the fan tokens allowing fans to purchase a token for their club or for others to do business of trading of fan tokens on Chiliz exchange platforms