Demystifying Factom Management

Recently, there has been a lot of discussion around the topic of ANO and server management. That was a stumbling block for me when I started tinkering with Factomd since the code responsible for on-boarding ANOs happens to spread across different repos. This blog aims to shine some light on the whole situation, detailing what exactly Inc. does when they “onboard” and “deboard” servers, how interested parties could launch their own custom network, and a few other maintenance utilities.

Preface

This blog is aimed at developers and other technically inclined people. I tried to keep it as simple as I could so everyone can follow along but fully detailing all the concepts like cryptographic signatures would result in … Read the rest

Factom TPS Report

One of the hurdles that we frequently run into when developing is the question: “did this actually improve the product?” This can lead to some very interesting discussions about where the actual bottleneck is. One of the ways is to have a specific test harness that will perform the same actions in a predictable environment. If the data improves after changes are made, you can demonstrate that it has improved.

So I ended up making a test harness for the network. Some of the questions I had going into this test was:

  • Is my P2P2 library an improvement over the old library?
  • Does it make sense to make it more efficient if the limiting factor is the network?
  • much
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Decentralized ANO Management

Currently, onboarding and deboarding of authority nodes is done by whoever has access to the network skeleton key. That key is hardcoded in the factomd codebase. Whoever has access to the private key essentially controls the authority set. There are a number of drawbacks to this approach:

  • The private key can be held by multiple parties without any accounting of who uses it. Party A signing a message is identical to Party B signing the message, with no way to know who sent it. The only publicly known party to hold the private key at the moment is Factom Inc.
  • It can’t be revoked. Should an employee with access to the private key part with the company, or should
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Dynamically On-boarding New Assets

At the time of writing, adding a new asset to PegNet is possible but it is a laborious manual process:

  1. Find at least two APIs that provide free and reliable* data for the market price
  2. Create a polling adapter that is able to read the API endpoint and transform the data to use in pegnetd
  3. Add a new OPR version that indicates the addition of a new asset, updating the OPR and Grading package
  4. Determine an activation height for this change
  5. Implement the activation height change in both pegnetd and the reference miner
  6. Deploy the new code and work with exchanges, mining pools, and discord to coordinate the hard fork

* Free means there is a way to make … Read the rest

Reaching PegNet Community Consensus via PoW

One of PegNet’s selling points is decentralization — officially there is nobody in charge of PegNet. It works as long as the people using it agrees to play by the same rules, which at the moment is done by everyone using the same software: pegnetd. As a core developer for pegnetd, one of the first questions I ask myself before considering a new feature is: how will the community react to this?

That immediately raises another question: Who exactly is the “PegNet” community and can we determine who the majority is? The obvious answer is that it’s a combination of all the people using it: members on discord, core developers, exchanges, miners, etc., however, it’s not feasible to … Read the rest

Was PegNet Fairly Launched?

PegNet is the CPU mineable stablecoin and synthetics network for DeFi. As a mineable token, people often want to know if it was fairly launched and if there was a premine. I have gone back through history to showcase that PegNet was, in fact, fairly launched. Before I do that, let me first state that PegNet has no premine and is fully decentralized. There is no foundation; developers are from Australia, Canada, the USA, Germany, Russia, and more. Many working on PegNet rely on donations thus this call for tithings (donations).

PegNet’s mining launched on August 19th, 2019. Let’s look at the timeline leading up to this.

In early 2019, Paul Snow of Factom Inc proposed the idea of PegNet, … Read the rest

How to transfer PEG from the Enterprise Wallet to the GUI Wallet

Kambani is a MetaMask-like browser extension for the Factom Protocol (and thus PegNet as well) that allows you to create a “vault” that securely holds your private keys. You can then interact with websites and wallets in a secure manner without exposing those private keys, you instead sign transactions. Kambani and the GUI wallet below are early release software and those involved with its creation provide no warranties and ask that you only use small amounts of assets in early transfers and conversions.

To transfer PEG or pAssets from your Enterprise wallet to the GUI wallet Kambani supports, you will need to export your private key from Enterprise and import it into Kambani.

While Factomize cannot claim that the software … Read the rest

PEG API Auditing

As of block 222270, PegNet switched from using the bootstrap formula for the value of PEG to using the market value, calculated from the three exchanges that list the token: CiteX, ViteX, and VineX. For miners to be able to oraclize this data, we needed to add APIs to the system. Every asset in PegNet has at least two separate APIs to pull data from and we did not want to make an exception for PEG. CoinGecko was the only existing API for the price of PEG, so two entities in the PegNet community stepped up: Factoshi and Factomizewith the goal of being phased out as other data aggregators come online.. The APIs of Factoshi and … Read the rest

What is the maximum supply of PEG, the mineable token of PegNet?

PegNet, which is a mineable stablecoin and synthetics network for DeFi, rewards its PoW miners that act as decentralized oracles with PEG. PEG is the only mineable token on the network and does NOT have a maximum supply but it will often contract. Inflation is a result of mining and inflation AND deflation result from conversions.

Mining

PegNet has 10 minute block times and 200 PEG are rewarded to 25 miners per block, meaning 5,000 PEG total per block. There is no halving or other reduction mechanism for block rewards.

Conversions

One of the novel technical innovations of PegNet is conversions. Within PegNet, you are your own exchange, or as some describe it, bank. If you have 10,000 … Read the rest

How PegNet Asset Prices Are Stabilized Via Arbitrage on Exchanges

PegNet is a groundbreaking stablecoin network that creates the foundation for decentralized finance. It is truly novel technology that allows for decentralized, digital versions of cryptocurrency, fiat currency, precious metals, and other assets that are called “pegged assets” or “pAssets” for short. The native token of PegNet is PEG and it is rewarded to Proof of Work (PoW) miners who act as decentralized oracles. These miners subscribe to various external market APIs and publish those results to PegNet.

On PegNet, the price of pAssets will always mirror their reference asset as it’s programmed that way. So if the data from external APIs the miners publish say Bitcoin is worth $10,000, then on PegNet pBitcoin will be worth $10,000. And if … Read the rest