What is Core ($CORE): Its Purpose, Functionality, and Purchasing Guide

Bitcoin, despite its prominence, faces several limitations that hinder its use within decentralized finance (DeFi). 

This is where Core, a new protocol, comes into play. It enables the deployment of EVM-compatible smart contracts, powered by Bitcoin.

What is Core?

Core, also known as "Core Chain," is a layer 1 protocol compatible with the Ethereum Virtual Machine (EVM). It facilitates the creation and deployment of smart contracts that leverage Bitcoin’s security and Ethereum’s scalability and flexibility. 

Core Chain utilizes a unique consensus mechanism called Satoshi Plus, which combines Delegated Proof of Work (DPoW) and Delegated Proof of Stake (DPoS) to achieve high performance and decentralization.

Core has already integrated with various decentralized applications (dApps) and developed its own protocols. 

To support ecosystem growth, Core, in partnership with MEXC and Bitget, launched a $200 million fund for new projects.

Why Core Chain?

Core Chain was designed to address Bitcoin's limitations while leveraging its strengths. Despite being the most popular network, Bitcoin has notable constraints:

• Scalability and Performance: Bitcoin’s 1 MB block size limits transactions per block, resulting in a throughput of just 5 to 7 transactions per second, insufficient for current needs. Additionally, Bitcoin blocks are mined every 10 minutes, causing significant transaction confirmation delays.

• Limited Programmability: Bitcoin’s scripting language is basic and doesn’t support complex smart contracts, unlike Ethereum.

• Lack of Interoperability: Bitcoin’s conservative updates preserve stability but limit adaptability to new technologies and interactions with other blockchains.

How Core Chain Works

Core Chain’s EVM compatibility allows dApps and smart contracts on Core to interact with those on Ethereum. Additionally, popular Ethereum development tools are compatible with Core Chain, simplifying developers’ work.

The Satoshi Plus consensus mechanism is a hybrid system combining DPoW and DPoS. 

DPoW allows Bitcoin miners to delegate their computational power to Core Chain, enhancing its security without compromising Bitcoin’s security. Miners receive CORE tokens in addition to their usual Bitcoin rewards. 

DPoS enables CORE and Bitcoin holders to vote for validators by delegating their tokens. This democratic process ensures broad participation.

Here are the roles within Core Chain:

• Validators: They create and verify transaction blocks, ensuring all transactions are valid before adding them to the blockchain. Validators must lock a certain amount of CORE tokens as a deposit.

• Bitcoin Miners: They can delegate part of their computational power to Core Chain, supporting validators while continuing to mine Bitcoin.

• Bitcoin Stakers: Bitcoin holders can stake their Bitcoins to contribute to Core Chain’s security.

• CORE Stakers: CORE token holders can delegate their tokens to validators, selecting who to support.

• Relayers: They transmit important information between the Bitcoin network and Core Chain, such as Bitcoin block headers.

• Verifiers: They monitor the network to detect and report any validator misconduct, ensuring rules are followed. Misbehaving validators can be penalized.

Validator Selection on Core Chain

Validators are chosen based on a hybrid score derived from delegated computational power (DPoW) and delegated tokens (DPoS). Every day, the top 21 validators with the highest hybrid scores are selected to be active for the next period. 

This process maintains network security and decentralization by ensuring only the most active and supported validators remain in function.

To uphold network integrity, Core Chain enforces penalties:

• Slashing: Validators can lose rewards or a portion of their CORE deposit for errors or severe violations, such as double signing.

• Jailing: Repeated or severe infractions can result in temporary exclusion from network participation.

Core DAO: Governance System of Core Chain

Core DAO oversees the Core Chain network, making key decisions such as adding validators and regulating governance parameters. 

Token holders of $CORE, who are part of the governance system, can propose and vote on network improvements. For example, the percentage of fee burns can be adjusted through on-chain voting.

The governance of Core Chain is gradually moving towards full decentralization. Currently, some decisions are made through online voting, but eventually, all $CORE holders will be able to participate in governance.

Core DAO's current goals include progressively decentralizing governance, minimizing risks for organizations on Core Chain, and increasing community involvement in network decisions.

Top Decentralized Applications (dApps) Developed on Core

Core has integrated with numerous DeFi protocols and created its own on-chain services. 

Applications integrated with Core include wallets (e.g., MetaMask), decentralized exchanges (DEX), launchpads, bridges, and gaming/NFT projects.

To access all dApps integrated with Core, click here.

Core's Native Protocols

1. Core Staking: Allows $CORE holders to stake their tokens with validators, earning rewards in $CORE and $BTC in return for their contribution.

2. Core Bridge: Facilitates token transfers across multiple blockchains (e.g., BNB Chain to Core Chain). Additionally, a second bridge allows the transfer of BTC from Bitcoin to Core Chain, converting BTC to coreBTC for use in DeFi.

3. COREx.Network: A decentralized exchange (DEX) that enables cryptocurrency trading without intermediaries, offering farming and LP providing services to help investors increase their returns.

$CORE – The Native Token of the Core Ecosystem

The $CORE token is crucial for maintaining the overall functionality of the Core Chain network. It serves several important roles:

• Transaction/Gas Fees: Users must pay transaction fees, known as "gas," in $CORE to execute transactions and smart contracts on Core Chain.
• Staking: $CORE holders can stake their tokens by delegating them to validators, securing the network and earning rewards.
• Governance: $CORE holders can participate in network governance by voting on key proposals and decisions.

$CORE Tokenomics

The maximum supply of $CORE is capped at 2.1 billion tokens, ensuring long-term scarcity which may increase their value over time. 

Part of the block rewards and transaction fees are regularly "burned" (destroyed), similar to Ethereum's "Ultra Sound Money" model, reducing the circulating supply and supporting the value of remaining tokens. 

The exact percentage of burned tokens is determined by the network's DAO.

$CORE emissions are designed to support the network over the long term, with block rewards distributed over 81 years.

How to Buy $CORE?

$CORE can be traded on exchanges like Bybit, OKX, Bitget, and Gateio, among others.

Disclaimer:

All information provided herein is for reference only and should not be considered financial advice. 

Investing in cryptocurrencies is risky and may result in the total loss of your assets. 

Cryptocurrency investments are speculative and volatile and are not guaranteed by any government agency. 

Users are strongly advised to conduct their own research and invest at their own discretion.