How REEF blockchain works?

Reef Chain uses NPoS, one of the well-known forms of proof-of-stake (PoS) consensus. PoS is a system whereby validators are selected based on the size of their stake.

With the NPoS mechanism, the nodes on the network are validators or nominators. Nominees stake some tokens to nominate validators. The stake amount determines the number of rewards a nominee will qualify for.

This mechanism is regulated and coordinated by the smart contract.

What is a REEF Token?

The token is the REEF network root itself, which exists as both a governance token and a utility token. Its owners can use it for administrative functions and also pay transaction fees and some other operations.

REEF utility tokens can be used to pay fees for blockchain operations, while REEF governance tokens can be used to become validators by staking tokens REEF.

Token holders can also vote on important network-related issues, such as choosing which validators become part of the network. When it comes to maintaining the REEF platform, token holders have an important part to play. The more tokens they hold, the greater their participation rate.

What is the REEF Token used for?

The goal of ReeF is to develop a cross-chain DEFI operating system that allows the transfer of notification codes to different blockchains. This enables the ability to transfer value between centralized and decentralized exchanges.

DAPPS developers on the ReeF block chain create a cross-chain operating system that connects the value between different blockchains. It acts as a bridge between the requester and the supplier.

The REEF chain can also develop other notification codes on its block chain, like thousands of notification codes built on the Ethereum block chain.

The main features in REEF

Proof of Stake

Blockchains using the PoS mechanism have fewer energy problems than blockchains using PoW. PoW requires nodes that solve cryptographic puzzles that require specialized machines. Many people have bought these machines to do calculations, and it takes a considerable amount of energy to do the process

With the effects of climate change and calls to reduce non-renewable energy consumption, blockchains using PoS have the potential to lead the way to a decentralized financial future.

Compatibility

The REEF series uses the Solidity programming language. Since it is system-compatible, it allows developers of DApps on the Ethereum network to import their DApps onto the REEF network without having to rewrite code.

Possibility of advancement

The special ability of the REEF chain is self-improvement and development. The development of the blockchain was interrupted because of its difficulty in upgrading, so the blockchain had to stop and a new one was created, called a hard fork.

Some cryptocurrencies have attempted to incorporate efficient development processes through governance models, moving towards centralization. With the advent of scalability, better versions of the blockchain can be developed without major disruption to its operation and, furthermore, without losing its decentralized nature.

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