At the end of June, Nebulas Research made its Nebulas Rank Yellow Paper public. The document discusses a value ranking mechanism that is used to assess the importance and relevance degree of blockchain members and elements. The algorithm represents an important research achievement for implementing search index ranking and value assessment in a distributed ledger technology (DLT) infrastructure. Nebulas Rank is the first multi-dimensional value ranking instruments created for DLTs. The tool can measure the value of apps and information by taking into account liquidity and propagation of application-based addresses and smart contracts.
What is Nebulas Rank?
Nebulas Rank is one of the key elements of the Nebulas Framework, along with Nebulas Force, Developer Incentive Protocol, Proof of Devotion (PoD) Consensus Algorithm, and the search engine tool for decentralized apps (Dapps). Nebulas aims to combine these elements to build a next-generation blockchain platform. In fact, the Global Public Chain Technology Assessment Index provided by the CCID Research Institute ranks Nebulas as the sixth best blockchain project. The ranking was published in mid-June 2018 by China’s Ministry of Industry and Information Technology.
Nebulas Rank is a revolutionary product that aims to sort out the huge data flow through blockchains. The algorithm’s principle is somewhat similar to Google’s PageRank, and it measures various parameters, such as speed, liquidity, width and depth of a blockchain capital to come up with a fair ranking for the users. Thus, developers can easily discover and measure value in the DLT ecosystem. Nebulas Rank allows the assessment of each user, decentralized application, and smart contract. The obtained data can then be applied in recommendation, advertising, and other areas.
The value assessment with Nebulas Rank is carried out based on three major dimensions:
- Liquidity– it refers to the frequency and scale of blockchain transactions. More transactions along with larger transaction scale generate a higher liquidity figure.
- Propagation– the second dimension refers to the scope and depth of asset liquidity. The propagation property, which includes the scope, speed, and depth of data transmission, is a significant index demonstrating the quality of the network and its expansion potential.
- Interoperability– the interaction between Dapps, users, and smart contracts constitutes the third dimension of the ranking system proposed by Nebulas.
What Does the Nebulas Rank Yellow Paper Discuss?
The Yellow Paper touches upon Nebulas Rank algorithm separately from Nebulas’ other elements. Nebulas Rank was first introduced last year in the technical white paper, but the Yellow Paper comes with more details on how the mechanism works and how the information and transactions within a blockchain system are valued.
The Yellow Paper represents a milestone that follows the recent launch of the Nebulas Mainnet, referred to as 1.0 Eagle Nebula. The paper shows the team’s readiness to become a major player in the blockchain space by providing DLT-based value discovery solutions.
The Nebulas Rank Yellow Paper has been developed by Nebulas Research’s team of talents, which has relied on in-depth research and practical experimentation. The team comprises experts from various areas, such as blockchain, computer science, and cryptography among others. We speak about doctors from leading universities like Huazhong University of Science and Technology or Tsinghua University.
The publication of the Yellow Paper suggests that Nebula Rank has officially entered the implementation phase after it was successfully tested. Now the work on Eagle Nebula 2.0 has started.
According to the announcement, the Yellow Paper discusses a dual taxonomy of Nebulas Rank algorithm: Core Nebulas Rank and Extended Nebulas Rank. The first one revolves around two factors, which are “the median value of assets of a factor account over a certain period of time” and “measures of the degree of access of the account within a certain period of time.” The second one provides various calculation techniques for the value scales of different apps in a DLT ecosystem.
The document also discusses the manipulation-resistance of Core Nebula Rank. The value measurement algorithm is using specific methods to detect manipulation attacks from entities who want to mislead the system to obtain benefits.
Nebulas token price positively reacted to the news on the Yellow Page publication. On June 30, the NAS token rose from $4.50 to $5.22 and is currently fluctuating at around $5.00.
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Image courtesy of Nebulas