5ireChain reward mechanism reflects its unwavering commitment to sustainability

May 10 20:56 2022

Reward mechanism is a protocol adopted to incentivize nodes for validating and adding new blocks to a blockchain network. There are numerous consensus protocols utilized by existing blockchain networks today. 5ireChain is using a novel consensus protocol to select and reward validators on its network. 

5ireChain Reward Mechanism

5ireChain reward mechanism reflects its unwavering commitment to sustainability. Over the decades, human civilization is marked with a corresponding environmental harm. Behind the scenes of industrialization and all forms of human breakthroughs is a failure in conserving the state of the environment. 

5ire, a 5th industrial technology powered with blockchain, is taking up the challenge of leading the way to sustainability.  Armed with a novel blockchain consensus protocol, 5ire is set to drive the transition from a for-profit to a for-benefit economy. 

A for-profit economy entails maximizing profit even at the detriment of the natural environment. This model is heavily present in the current generation of industries. On the other hand, a for-benefit economy is a new business model that creates room for sustainability. Recently, investors are putting into consideration the environmental impacts of the company they are investing in. 

5ireChain is built with sustainability deep-rooted in its core. It uses a novel consensus protocol, the Sustainable proof of stake to validate and add new blocks to its chain. This consensus protocol accords ESG scores to nodes based on their ESG-compliant practices. These scores are aggregated with other factors like age of node, staked amount to determine the next block assemblers in each network epoch.

The 5ire approach falls in line with the UN laid down model for sustainability in the 2030 vision. It is the first sustainability-driven blockchain ecosystem. 

In the 5ireChain network, ESG scores are taken into account while selecting validators. ESG scores contribute 20% of the total score of the validators. The calculation of ESG scores involve the node providing a report in support of their compliance with sustainability policies. The report is reviewed by a group of nodes. They also provide a rating to the ESG node on a scale of 1 to 10. Finally the ratings from different nodes are averaged out, and an overall score is computed. This ESG score is used to calculate the weight of the node for becoming a block validator. Every rating provider obtains a share from the reward pool for participating in rating the ESG report.

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Company Name: 5ire
Contact Person: Vilma Mattila
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Country: United Kingdom
Website: https://5ire.org