Witnet, a blockchain oracle platform, stands as a prime example of a decentralized layer 1 blockchain, distinguished by several key attributes:
1. Witnet's uniqueness lies in its adoption of the Random Proof of Eligibility consensus mechanism. However, it's slated to transition to a genuine Proof of Stake model with Witnet 2.0 by the end of 2023. For Witnet stakeholders, comprehending the implications of this shift is paramount.
2. $WIT, Witnet’s native utility token, plays a pivotal role within the ecosystem. It covers gas fees, secures the network through staking, and incentivizes data providers. In return for WIT tokens, Witnet's permissionless oracle nodes retrieve, verify, and deliver data to smart contracts in a tamper-resistant, decentralized fashion. Witnet 2.0 is expected to bring alterations to $WIT tokenomics.
3. Witnet's commitment to decentralization minimizes the risk of a single point of failure. Multiple Node Operators and Multiple Data Sources ensure resilience against control by a single entity. The random selection of anonymous nodes for data retrieval and validation safeguards Witnet from undue centralization.
In essence, Witnet earns its status as a layer 1 blockchain by executing transactions on its dedicated blockchain, utilizing its native token for transaction fees, and, most importantly, by being specifically designed to offer decentralized and permissionless Oracle solutions. Thus, it rightfully claims the title of a genuinely decentralized layer 1 blockchain.
