Introduction
Quai Network is a next-generation Layer-1 blockchain designed to accommodate both human and AI-driven economies. It distinguishes itself through its unique combination of infinite scalability and a native energy-based “stablecoin,” positioning itself as a robust financial infrastructure for the global and compute economies. Utilizing advanced Proof-of-Work (PoW) mechanisms and innovative architecture, Quai Network aims to address common blockchain challenges such as scalability, decentralization, and real-world value integration.
Architecture and Technology
Proof-of-Entropy-Minima (PoEM)
Quai Network utilizes the Proof-of-Entropy-Minima (PoEM) consensus mechanism as a fork-choice protocol to manage consensus across an expanding number of execution shards. This approach ensures the network can scale indefinitely by adding shards to meet increasing demand while maintaining network security and integrity.
Hierarchical Structure and Multithreaded Execution
The network is structured into a hierarchical system of shards, categorized as Prime, Region, and Zone chains. This architecture allows for multithreaded execution, enabling Quai Network to process more than 50,000 transactions per second (TPS). Miners play a crucial role in creating objective links between these shards, facilitating trustless and efficient cross-shard communication.
Merged Mining
Quai Network employs merged mining, which allows miners to secure multiple blockchains within the network simultaneously. This method not only enhances security but also improves energy efficiency, as miners can contribute to various chains without the need for additional resources.
Infinite Scalability
Quai Network’s architecture is designed for infinite scalability, capable of accommodating a continuously expanding user base. The PoEM mechanism enables the network to dynamically add shards as demand grows, effectively managing congestion and maintaining low transaction fees. However, this scalability comes with the trade-off of longer cross-shard settlement times, a challenge the network addresses through its hierarchical structure.
Energy-Based Stablecoin
Quai Network introduces a novel approach to decentralized finance through its native energy-based stablecoin. This stablecoin is pegged to the cost of energy, leveraging the universal demand for energy as a stable foundation for value. The network’s dual-token system consists of Quai and Qi tokens, where Qi serves as a medium of exchange and Quai functions as a store of value and programmable money.
Tokenomics
Quai Network’s tokenomics are designed to ensure long-term sustainability and ecosystem growth. The network’s tokens are distributed across various stakeholders, including miners, strategic partners, and the community. Specific allocations include 25% for adoption incentives, 20% for mining rewards, and 15% for the Quai Foundation, among others. The total token supply is hard-capped, with mechanisms in place to ensure decreasing inflation and eventual deflation.
Testnets and Development
Quai Network is currently in its testnet phase, with the Golden Age Testnet expected to launch in September 2024, followed by the Silicon Age Testnet. These testnets are crucial for evaluating the network’s performance, particularly the PoEM consensus mechanism and its integration with the network’s hierarchical structure.
Previous Testnets
- Stone Age: Focused on validating basic network functionality.
- Bronze Age: Introduced stress-testing and smart contract deployment.
- Iron Age: Aimed at testing PoEM and developer engagement for dApp development.
Founders and Leadership
Quai Network was co-founded by Karl Kreder, Sriram Vishwanath, and Alan Orwick. Kreder serves as the CTO, Vishwanath brings academic expertise in electrical and computer engineering, and Orwick contributes his experience as a former Apple software engineer. Together, they have established Quai Network as a pioneering force in decentralized blockchain technology.
Partnerships and Funding
Quai Network has attracted interest and investment from notable partners in the blockchain space, raising $10 million in two rounds of funding. Key investors include Alumni Ventures and Polychain Capital. These partnerships are instrumental in driving the network’s development and expanding its reach within the broader blockchain ecosystem.
