2.2 Key Aspects of the PEM Project

PEM Project aims to overcome the limitations of existing blockchain systems by leveraging the advantages of hybrid blockchain technology. By utilizing the POW+S consensus algorithm and efficient node management, it ensures high security and scalability, providing a blockchain solution applicable to various industries. This will accelerate the popularization and practical application of blockchain technology in real life.

PEM Project addresses the challenges of traditional blockchains by introducing a hybrid blockchain system that combines the strengths of both public and private blockchains. Hybrid blockchain architecture merges the openness, transparency, and security of public blockchains with the high performance, scalability, and energy efficiency of private blockchains.

The POW+S mainnet of PEM Project will initially operate as a consortium blockchain, managed by validated nodes (Validator Nodes). This approach ensures high performance and stability while maintaining control over blockchain governance. Over time, restrictions on node participation will be gradually relaxed, and a decentralized decision-making structure will be introduced, enhancing the openness and decentralization of the blockchain network.

Second, PEM uses a hybrid consensus mechanism that combines Proof-of-Work (PoW) and Byzantine Fault Tolerance (BFT) algorithms. In the initial phase, BFT algorithms such as Practical Byzantine Fault Tolerance (PBFT) are employed to achieve quick consensus and high TPS. Gradually, a proper balance between PoW and BFT is adopted to enhance security and decentralization. This innovative hybrid consensus algorithm is expected to ensure not only the performance and stability of the POW+S mainnet network but also its security.

Third, PEM adopts a multi-layer architecture comprising Layer 1 (base blockchain), Layer 2 (scalability solutions), and Layer 3 (cross-chain and inter-chain). Layer 1 implements the core functions and consensus mechanisms of the blockchain. Layer 2 applies off-chain scalability solutions like sidechains, plasma, and rollups. Layer 3 features cross-chain and inter-chain protocols that support interoperability and data exchange between different blockchains.

Within this multi-layer environment, PEM employs the Alternative-DA (“Alt-DA”) solution, which offers advantages such as Layer3, flexibility, high performance, cost reduction, and node decentralization. The details are as follows.

  • Optimization for Layer 3 in AppChains

Layer 3 is well-suited for AppChains due to its ability to significantly enhance scalability, meeting the high scalability demands of such applications.

  • Flexibility

It is freely compatible with various mainstream Alt-DA solutions like Celestia and Avail, which support both OP rollups and ZK rollups.

  • High Performance

The Alt-DA solution includes a substantial number of light nodes for data availability verification and supports block sizes of several megabytes.

  • Cost Reduction

Due to the high scalability of Alt-DA solutions, data availability costs are significantly reduced compared to high-cost chains like Ethereum.

  • Node Decentralization

Alt-DA solutions address the data availability verification issue of light nodes, facilitating the resolution of centralization problems that occur with full nodes under large blocks.

Furthermore, by examining potential advanced features, the support for Turing-complete smart contracts allows for the development of various decentralized applications (DApps) on the blockchain. This capability enables the application of blockchain technology across diverse industries such as finance, supply chain management, healthcare, and energy. PEM fosters a developer-friendly environment and ecosystem for smart contract development, promoting the activation and growth of blockchain applications.

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