Thread by @yqboom

$SAITO brings true openness to the blockchain and fixes blockchain fallacies.

But what does this really mean?

A deep dive into #SAITO🧵

Token distribution goes first today. 📌

$SAITO made it easy with an image.

Follow the Pins for the most important non-technical summaries throughout this rather technical thread on the innovative $SAITO.

$SAITO addresses many issues that are often overlooked as insignificant in developing cryptocurrencies and blockchains.

It is one of the most complex and innovative chains I have run into in a long time, hats off... 📌

Gonna be difficult to do it justice in a limited thread..

#Saito is the open network layer that lets users run blockchain apps in-browser w/o closed plugins, private APIs and non-open infrastructure

Saito operates with no owner and funds the nodes that provide user-facing infrastructure for its own network and other public blockchains.

According to $SAITO the problem with blockchain scaling is not at the network technology layer but what limits network growth is the challenge
of paying for the network. 📌

A common problem in blockchain is that it is reliant on some group of people. Whether these people are Volunteers, Miners, Businesses, Validators, or another collective action group.

Another problem with current blockchian solutions is the tragedy-of-the-commons issue is created by
the existence of the permanent ledger, which encourages nodes to accept payment today for work that can be offloaded to others tomorrow.

In $BTC this problem is 'overcome' by overlooking this issue and just continuously creating blocks despite of the 'minor' issue this poses to the chains operability.

The actual way to overcome this requires all nodes that add transactions to the blockchain to bear the cost of processing those transactions for as long as they remain on the blockchain.

Saito fixes the collective action problems that impede scaling in proof-of-work and proof-of-stake blockchains by coupling a circular ledger to a consensus mechanism that incentivizes the
collection and sharing of transaction fees.

The resulting network pays not just for mining and
staking, but for all activities that contribute economic value to the network. In the process
Saito fully eliminates 51% attacks among other attacks.

$SAITO opposes traditional POW chains in the way that $SAITO ensuresthat payments are proportional to work regardless of who produces blocks.
The cost-of-attack that a mechanism with this
property creates is then leveraged into being the
cost of block production.

Essentially, block producers verify transactions and bundle them into blocks, then share these with the network. Block producers also create a puzzle (a golden ticket) that is used to pay routing nodes for their work. 📌

The ”golden ticket” solution.

This mechanism pays honest nodes for collecting fees regardless of who produces blocks.

They ensure there is always a quantifiable cost to attacking the system. The solution is to return the transactions fees to the network.

This is done through a process that cannot
be gamed by any of the players in the network
without spending far more money on the attack
than they stand to benefit from collecting the
payments.

Whenever a node produces a block, it may collect the difference between the amount of ”routing work” included in its block and the amount
of routing work required for block production.
No other payments are made.

Unlocking those payments requires the network
to solve a computational puzzle we called the ”golden ticket”.

Only one solution may be included in any block,
and that solution must be included in the very
next block to be considered valid.

If a block's conditions are violated or a ”golden ticket” is not solved, the funds that were not paid out are not allocated.

They fall back into the chain and eventually disappear and are recollected by the consensus layer and redistributed as part of a future block reward.

Should a solution be found in time, the unallocated fees are released to the network; split
between the miner that found the solution and
a random node in the routing network.

Golden ticket system visualized:

We call the split/division of payment between miners and routers the ”paysplit” of the network.

The benefit of $SAITO's sytem over PoS and PoW is that it explicitly distributes fees to the nodes that service users, collect transactions and produce blocks, and does so in proportion to the amount of value that these actors provide to the overall network 📌

Some other benefits of the $SAITO chain. 📌

1 Saito applications run directly in the browser without closed plugins or private API providers.

2 Access-points means anyone can start a node, there is never a shortage of connection points.

3 Saito pays for infrastructure that connects blockchains to users. The more applications run on Saito, the more infrastructure the network deploys. Evergrowing infrastructure.

4 Saito is a trust-free and decentralized open-source software stack

Here are the most prominent cryptographic inventions by $SAITO (some of which are not covered):

Automatic transaction rebroadcasting (not covered)
The unique burn fee mechanism
The golden ticket system
Paysplit
A secure multiparty voting mechanism (not covered)

That's it for $SAITO for now.

Gonna have to do a follow-up thread on the #SAITO chain.

Easily one of the most intricate and unique chains I have run into as I stated.

REAL innovation is happening at @SaitoOfficial, proud to see this in the community.

Cheers lads