Why Witnet is a Layer-1 Blockchain
Witnet is a fully decentralized multichain oracle built on its layer 1 blockchain. Witnet was purpose-built to offer Oracle solutions in a permissionless and decentralized manner, excelling in its core functions. In this article, we will delve into the key reasons why Witnet rightfully falls under the category of a decentralized layer 1 blockchain:
1. It Possesses Its Own Consensus Mechanism
Currently, Witnet employs a distinctive consensus mechanism known as Random Proof of Eligibility. However, in the upcoming months, specifically by the end of 2023, Witnet is scheduled to make a transition to a genuine Proof of Stake model with the launch of Witnet 2.0. If you are a Witnet stakeholder, it is crucial to understand how this transition will impact you.
Learn more: You’re a Witnet Stakeholder? This Is How Witnet 2.0 Will Affect You
2. It Features Its Own Native Asset
Witnet’s native asset, $WIT, serves as the utility token for the Witnet blockchain, fulfilling various roles such as covering gas fees, staking for network security, and incentivizing data providers. In exchange for WIT tokens, Witnet’s network of permissionless oracle nodes retrieves, attests, and delivers information to smart contracts in a tamper-resistant and decentralized manner. It’s important to note that the upcoming Witnet 2.0 upgrade will bring changes to $WIT tokenomics.
Learn more: Announcing Witnet 2.0
3. It Embraces Decentralization
Witnet’s genuine decentralization eliminates the risk associated with a single point of failure, thanks to its incorporation of Multiple Node Operators and Multiple Data Sources. Witnet relies on a random selection of anonymous nodes for data retrieval and validation, ensuring it remains free from single-entity control.
In simple terms, Witnet can be tagged as a decentralized layer 1 blockchain because it settles transactions on its dedicated blockchain, has its native token for transaction fees, and was purpose-built to provide Oracle solutions in a truly decentralized and permissionless manner. Therefore, we can aptly categorize Witnet as a genuinely decentralized layer 1 blockchain Oracle.