Taxes Explained

Each decentralized payment system (aka cryptocurrency) relies on its most active participants, who maintain its hardware. The system is alive when it has a big enough number of nodes, which are servers working online 24/7, communicating according to the pre-defined protocol. Zold is not different. However, the way cryptocurrency users reward those enthusiasts is different in Zold, comparing to most other cryptos. There are no transaction processing fees. Instead, there are wallet maintenance taxes. Here is how they work.

How to Run Zold Node?

Even though we have some documentation in GitHub, there are many questions from newcomers who want to join Zold networks and become Hosters to earn hosting bonuses and taxes—how to run a node? Were is the video? Why it doesn’t work for me? Who can help? Here is a short summary of how it is supposed to work. If it doesn’t, please post your comments below, one of us will help you out.

Nodes Discovery Protocol

Zold is a decentralized system, which specifically means that there is no central directory of nodes, where a new node may lookup and find where to connect to (aside from a short list of master nodes, of course). The entire network may include tens of thousands of nodes, which may be up or down at any particular moment. There is no guarantee that any of them will be responsive or will even stay online the next minute. How does a node finds its place in this “chaos”? How do they know where others are located and which neighbours they can rely on?

Masters And Edges

Any decentralized system, no matter whether it’s a cryptocurrency like Bitcoin or Ethereum, or something else like Tor, Kazaa, BitTorrent, DNS, or Skype, need some amount of servers with a special level of trust. When new clients connect to the network they have to interact with some servers they can fully trust. Then, those “nodes” can redirect the clietn to other places. Something similar existed in Zold from the first day, but got a special name just a week ago.

Garbage Collection

The mechanism of garbage collecting was recently introduced in our server-side sofware. It’s simple: the node automatically removes all empty wallets, which are older than 10 days. What is the purpose of this process and what are its possible negative consequences? There are some, let me show you.

Stress Tests

It was promised earlier that Zold cryptocurrency is way faster than any other Blockchain-based solution can even dream of. We claimed that a million transactions per second is not the limit. Theoretically it’s true, because there is no centralized ledger in Zold. Each node maintains its own list of wallets. Thus, the bigger the number of nodes, the faster the network. We created a simple tool to prove our claims.

Mining on Mobile Phones

Proof-of-Work is the core principle behind many blockchains, including Bitcoin and Ethereum. The idea behind it is simple: a node, in order to win the game and earn something, has to compete with all other nodes. There is only one thing that guarantees success in the competition: its CPU power. The faster and more expensive the computer, the higher the chances that it will find the nonce for the next block.