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Blog article - January 20, 2023

Camino 101: What you should know about Camino Network

Today we want to share more insights about our project Camino.

testimonial-photo By Pablo Castillo
lighthouse

While you were able to learn a lot about the basic framework of Web3 and crypto in our last blog posts, today we want to focus on something else: precisely what we do - and why Camino is different from many other Web3 projects sprouting from the ground.

The reason for this is that we are getting closer and closer to the launch of our Camino mainnet and, therefore, also to the possibility for all private individuals and businesses to become part of our project. We are incredibly excited! Are you too?

If you are not yet, here are a few reasons for why you should be. πŸ˜‰

So, let's get started!

Consortium blockchain (sounds more complicated than it is, we promise!)

You will encounter the word "consortium" almost everywhere in our communications. But what exactly does it mean? And why is it so different from other blockchain projects?

There are various types of blockchains with different access and authorization schemes: for example, private blockchains restrict access to certain participants. Private blockchains are typically used by organizations or groups that want to maintain control over the network, such as for financial transactions or supply chain management. This is in contrast to a public blockchain, which is open to anyone: who wants can participate in the network, perform transactions, help validate blocks, as well as view the entire history of the blockchain.

As you can see, these are two extremes - super private to super public - at Camino, we have opted for something in between; a hybrid, you could say.

We've created a consortium blockchain. This means that the network is controlled by a group of organizations or entities rather than a single central authority. This group is known as the consortium. Members of the consortium typically work together to validate transactions and maintain the security of the network. Access to the consortium blockchain is usually restricted to group members, and transactions on the network are typically faster and more secure than those on a public blockchain. Therefore our consortium blockchain bypasses the disadvantages of public and private blockchains and benefits from their advantages. For the travel industry, we concluded this is the most suitable form to ensure a cost-effective, scalable, and especially secure environment.

In the case of Camino, validators need to run through a KYC/KYB check, have some ties to the travel industry and have some "skin in the game" by depositing 100,000 Camino tokens as stake for the validator.

To be precise: validators are the backbone of each blockchain and the governing body deciding how the blockchain will develop in the future. There are over 80 companies from the travel industry that have signed up to become a validator on the Camino Network. We believe that the travel industry can build the infrastructure of the future for itself - with the help of web3 technology.

However, a completely public blockchain would not have made sense for exactly this reason: a key manufacturer should have relatively little say on the blockchain for travel. Makes sense, doesn't it?

PublicPrivateConsortium
Permissionless?βœ… Yes❌ No❌ No
Who can read?πŸ‘€ Anyone🎟 Invited users onlyπŸ’Ž Depends
Who can build?πŸ‘€ Anyone🀝 Approved participants🀝 Approved participants
Ownership🚫 Nobody🏠 Single entity🏘 Multiple entities
Participants known?❌ Noβœ… Yesβœ… Yes
Transaction speed🐌 SlowπŸš€ FastπŸš€ Fast

What exactly are validators?

As we have explained in our previous blog post, blockchain technology requires network participants to validate transactions. This is a security measure - validators basically approve transactions, making sure they make sense and are valid.

On Camino, these so-called "validators" are consortium members who have certain decision-making powers in the network. For example, they are responsible for validating transactions and have different voting rights, e.g., over "gas prices" as part of the transaction fees or on who can join as a new validator. Their important role is also to secure the network by providing decentralized infrastructure and validating transactions. Currently, we have many validators already, and our network is continuously growing.

If your company is interested in becoming a validator and actively shaping the future of travel, you can find more information here.

Consensus mechanism

From validators, we quickly move on to the topic of consensus. Because in a consortium with equal voting power, it is important to have a consensus algorithm in place that defines how a block is approved. The consensus mechanism is, in fact, a very decisive part of a blockchain, as it has a great impact on the transaction costs and speed of a network. On Camino, we use the Proof-of-Stake & Authority (PoSA) validation mechanism, which is a mix of different methods and has proven to be the most suitable for a travel industry blockchain.
Using the energy-efficient PoSA consensus algorithm rather than, for instance, Proof-of-Work (PoW) reduces energy consumption significantly, and at the same time, the transactional speed can be increased.

This is where it gets interesting: The Camino token

With our blockchain project Camino, we are currently building the infrastructure for the travel industry of the future. But there's one thing we haven't talked about yet: the Camino token.

Surely you know that Bitcoin was the first cryptocurrency, that the Ethereum blockchain features Ether as a payment method, and maybe you even know a few more tokens like Cardano or Celo.

In the same way, we also have a token with which transactions can be settled in the future, fees paid, etc.: The Camino token, or CAM for short.

With our Initial Exchange Offering (IEO), which is planned for later this year, everyone will have the opportunity to purchase these tokens.

If you didn't participate in the pre-sale, you could already subscribe to our newsletter to not miss when the Camino token is finally available for public purchase.

Expert knowledge: The difference between tokens and coins

We use the term cryptocurrencies to refer to a variety of currencies. However, there is mostly confusion about the difference between the two terms, namely coins and tokens. Let's take a closer look.

In the context of blockchain technology, coins and tokens are both digital assets, but they have some key differences. Coins, also known as cryptocurrencies, are a type of digital currency that use blockchain technology to facilitate secure and decentralized transactions. Bitcoin, for example, is a coin. They can be used to purchase goods and services and can also be traded on various cryptocurrency exchanges. Coins are typically created by a process called mining, which involves solving complex mathematical equations to validate transactions and add new blocks to the blockchain.
Tokens, on the other hand, can represent a variety of assets and are often used to access a specific product or service within a specific ecosystem. Tokens can represent ownership of an asset, such as stocks, bonds, real estate, or other investment assets. Tokens can also be used to access certain features of a product, such as unlocking additional functionality in a game. Tokens are usually created through a process called an Initial Coin Offering (ICO) or Security Token Offering (STO).
In summary, coins are digital currencies, and tokens are digital assets that represent something else, like a stock, point, or access to a service.

Camino (CAM) is the native token of the Camino network; it is used for all transaction processes, including transaction fees, staking, and voting on Camino. Due to its standardized code protocols, it can be easily traded.

Animated Camino Token GIF

We know our content today was a bit more technical than usual, but we're just too proud of all the great features (and of all our developers, of course!) that we're finally going to release with the Camino mainnet launch for not talking about them!

So hopefully, you don't hold it against us too much. And one more thing: if something is not clear or you would like to have more insights into a special topic you can always contact us by e-mail: hello@chain4travel.com.

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