Most blockchain networks don’t offer income opportunities for standard transport nodes – but Graphite Network’s newly launched Proof-of-Authority (PoA) Polymer 2.0 blockchain does. In a recently published press release, the company stated that in the Graphite ecosystem, even regular entry-point node operators can now earn rewards.
Since entry-point nodes are simple to integrate, this innovation makes it easy for anyone, not just validators, to start generating revenue by supporting the network’s operability. With Graphite, users hosting entry-point nodes receive 50% of each transaction fee processed through their nodes, while the other 50% goes to an authorized node that validates the transaction.
Unlike entry-point nodes, authorized nodes must pass Graphite’s highest KYC standards and meet technical requirements. The Graphite Foundation also supports the network’s stability through 15 foundation nodes, which are always active to ensure reliable uptime for the network.
In addition to passive income generation for all types of node operators, Graphite distinguishes itself with a reputation-based approach to blockchain interactions, bringing the best practices in traditional finance (TradFi) to Web3. In this way, Graphite aims to create trust without sacrificing privacy, making user experience both transparent and secure.
Four Pillars of Graphite’s Reputation-Based System
Graphite Network’s reputation-centric features include account activation, multi-level KYC verification, KYC transaction filters to let users choose their counterparties, and a Trust Score that gives a quick read on user creditworthiness.
Many blockchains currently allow users to create as many wallet addresses as they want, resulting in an overload of inactive or single-use wallets, some created for illegal transactions.
The State of Crypto 2024 report from a16zcrypto reveals that 220 million unique addresses have interacted with blockchains at least once since the beginning of the year. However, a significant portion of these addresses were used only once and cannot be classified as truly active. Furthermore, while awaiting updated stats from the 2024 Crypto Crime Report, 2023 data already points to concerning trends, with $24.2 billion worth of cryptocurrency tied to illicit activities.
To address these issues, a potential solution is to require each new account to pay a small activation fee. Graphite implements this exact approach, wrapped around the “one user, one account” policy, which not only deters spam accounts but also helps ensure that wallet addresses are more likely to be used legitimately.
Even though Graphite emphasizes reputation, it still respects user anonymity and never compromises data privacy. Building on this commitment, Graphite includes a tiered KYC process, each increasing the user’s credibility score, with social media verification available in the initial release.
Graphite ensures that all KYC procedures are completely off-chain and that user personal data is never stored on the blockchain. On top of that, it applies a Zero Knowledge Proof (ZKP) method to verify data validity without revealing the data itself, keeping KYC checks entirely private.
Many users, understandably, prefer not to engage with questionable parties, and, to further support user control and trust in every transaction, Graphite introduces KYC-based filtering options for added security. Through these filters, Graphite users can set criteria that incoming transactions must meet.
For instance, users can choose to only accept transactions from accounts with a specific KYC level or higher, or from accounts that have been activated. If an incoming transaction doesn’t meet the filter requirements, it’s automatically rejected at the network level, keeping suspicious or low-reputation transactions at bay.
Complementing this is Graphite’s Trust Score, which reflects a user’s overall credibility. It gives an indication of how safe someone is to engage with, which comes in handy for things like lending, helping lenders assess risk and decide on the terms.
Graphite’s Solution to High Fees and Slow Transaction Confirmations
Millions of users are already tired of the inefficiencies that typically come with blockchain transactions. For too long, they have had to deal with steep transaction fees (sometimes as high as 25% of the total transaction amount) and long wait times for confirmations, often over 10 minutes.
With transaction times under 10 seconds and a network that can handle up to 1400 transactions per second, Graphite makes sure that users can make transfers smoothly, even during busy times. Plus, the network’s fee structure is straightforward, making costs much more predictable.
Helping Developers Build with EVM Compatibility
Graphite also offers a solution for developers looking to run Ethereum-compatible smart contracts. By integrating an industry-standard EVM, Graphite allows Web3 builders to execute Solidity contracts on its network with no extra development needed, which saves both time and money. Finally, with Graphite’s Proof of Authority (PoA) Polymer 2.0 consensus, smart contracts execute faster and more efficiently.
