A blockchain network is nothing without one critical aspect, a healthy community of active and connected users. With the cryptosphere bursting with “new” solutions, understanding what makes blockchains unique from each other is vital. To that end, we will break down the core concept of BitCanna, including a detailed review of each network layer. First, let us begin by explaining the BitCanna architecture in its entirety.
Understanding How BitCanna Is Built
It is not uncommon for blockchains to be split into layers or tiers as they are developed. At their core, blockchains need to be stable, secure, and function correctly. The first layer, the one many users have become accustomed to, is the protocol.
Layer one ensures the rules that govern a blockchain operate accurately and fairly, while still incentivising users to play an active role. Once both the protocol (layer 1) and the decentralised ledger (layer 2) have been established, you have the beginnings of a fully-fledged blockchain network. BitCanna uses tried and tested consensus to ensure the foundations of the network operate properly.
It does, however, bring us back to our point about defining a point of difference; what makes BitCanna unique? Moving past the base infrastructure, layers 3, 4, and 5 are where users will discover the real power of BitCanna.
How BitCanna’s Architecture Will Work — 5 Layers
Responsible for securing the protocol that underpins every transaction on the network,
Layer 1 ensures fair consensus and validation. BitCanna will operate a proof-of-stake consensus, a topic we will cover in more detail below.
Comprised of the decentralised ledger. Connected users (nodes) will have access to a copy of the BitCanna ledger, a digital record of all transactions on the network. Nodes will also be able to send and receive BitCanna tokens (BCNA) and verify blocks.
Functionality starts to expand rapidly with the development of Layer 3. Access to supply chain features — including a digital identity for products and businesses operating on the BitCanna network and the ability to trace the movement of products all the way back to the source — will provide unrivalled transparency.
Focused on the values of trust and reputation, Layer 4 is one of the tools that will be used to promote the BitCanna network with regulatory bodies and government institutions. Consumers will also have access to a BitCanna ID.
The pivotal point of difference comes via Layer 5. The BitCanna platform, accessible through a digital wallet on both mobile and desktop, will unlock exciting features. A rating system verified by smart contracts will provide a comprehensive database for customers.
Shops and dispensaries will also be able to offer loyalty programmes. Provided customers use the network as a payment platform, those loyalty programmes will give customers an opportunity to earn BCNA. Finally, an advertisement programme further rewards both customers and businesses that choose to watch or submit adverts on the network. All three functions will feed into an analytics tool to further improve marketing efficiency.
Development Will Be Phased
Given the level of complexity involved with successfully integrating each layer within the network, development will be phased. The BitCanna roadmap provides a comprehensive overview of the timing for each phase of development, and with it, details of each application launch. BitCanna aims to be a blockchain network with widespread adoption and true integration within the mainstream market. To achieve that, reforming the cannabis industry will be a step-by-step process supported by the solutions blockchain technology provides.
Layer 1: The Protocol
Protocol is defined as “a set of rules governing the exchange or transmission of data between devices”. Sounds good, but how does it apply to a blockchain?
Using this definition, we can relate each aspect to how a blockchain operates. In BitCanna’s case, BCNA tokens will be the “transmission of data” that users can exchange, sending to and from their respective private wallets. That is as long as the total of tokens they wish to transfer exist in the first place.
This process is controlled via cryptographic encryption and the use of public and private keys. No one else but the owner of a wallet’s private key has access to the digital tokens stored within. Once two parties have agreed on a transaction, they must broadcast the transfer of assets (BCNA) to the network so it can be verified and added to the blockchain. To be legitimised on the network, we need to make sure “a set of rules” are adhered too. These rules govern everyone who chooses to use the network. In BitCanna’s case, it is a unanimous consensus that all users must follow.
The consensus method chosen for BitCanna is proof-of-stake. To become a validator — someone who can verify transactions on the network — one must first deposit a portion of their own BitCanna tokens. This is their stake, a crucial aspect of maintaining a legitimate ledger. Validators are chosen at random (almost), with the only influencing factor being the size of their stake. The larger a validator’s stake, the greater the chance of being selected to verify a new block. Once selected, they must check the transactions within the block against the rest of the blockchain to prove they are legitimate.
Validators are rewarded with the transaction fees if the block is confirmed and added to the blockchain. If the transactions within a block are fraudulent and the network rejects them, validators will lose their stake. By establishing an unbiased set of protocols that all users (nodes) must adhere to, it is possible to add new blocks to the network. The rules that govern the blockchain also ensure there is only ever one true copy of the ledger, regardless of how many transactions take place.
There is no requirement of trust between nodes, just a set of absolute requirements that must be fulfilled. This ensures the viability, security, and integrity of BitCanna’s blockchain network.