While there are countless blockchain innovations, most of them overlook the injustices prevalent in the market and the foundational flaws that hinder mass adoption and user trust. Graphite Network, a recently launched next-generation Proof-of-Authority (PoA) blockchain has broken new ground with its novel approach. With features like passive income for node operators, a reputation-based trust system, and privacy-centric KYC, it sets the bar for how blockchain can operate fairly, target mass adoption, and truly meet the needs of the future.
We approached Graphite CTO Marko Ratkovic, who, together with his team, brought to life the blockchain utilizing the cutting-edge Polymer 2.0 algorithm and aiming to bridge the gap between traditional finance (TradFi) and the decentralized world of Web3.
Marko’s journey with Graphite began where most blockchain startups start—focusing on development and building foundational technology. However, the more they explored, the more glaringly evident it became: mass adoption was unattainable with the current market offerings.
“Initially, we were focused on building blockchain solutions, but as we moved into low-level protocols and high-load systems, it became impossible to ignore the injustices in the market,” Marko recalls. “Most solutions out there enable illegal operations, obscure the source of funds, consume massive resources, and are wildly inefficient. How can we talk about mass adoption when the foundation is so flawed?”
Building a Fairer System with Entry-Point Nodes
“One of the greatest injustices in blockchain today is how developers and integrators are sidelined,” Marko says. “Despite being the backbone of these ecosystems, they often rely on external monetization strategies to earn revenue.”
Graphite solves this issue with its innovative feature allowing entry-point node operators to earn 50% of transaction fees passing through their nodes. Entry-point (or transport) nodes are specialized nodes that handle transaction routing and network activity without requiring full validator roles.
“For the first time, even those who aren’t validators can generate consistent income from blockchain activity,” Marko explains. “It’s a step towards fairness the industry has been crying out for.”
Reputation as the Cornerstone of Blockchain Trust
For Marko and his team, the realization was clear: the blockchain ecosystem needed a new way of thinking where reputation would be the primary metric that holds users, validators, and integrators accountable.
“Reputation is more valuable than money,” Marko says. “We introduced a system where validators can compete with one another. Validators with better reputations—those with higher-quality services—can process more transactions and earn more rewards,” he explains.
Since reputation needs to be carefully tracked, the team came up with the idea of KYC. Users’ reputations are represented by the Graphite Trust Score, which incorporates a variety of factors, including the KYC verification level, transaction history, account creation time and activity, holding patterns, the weighted average of the Trust Scores of other addresses this account has transacted with, and any fraud claims. However, the Graphite team didn’t want to impose strict rules on users.
“In our blockchain, everyone can set their own interaction preferences—whether to complete KYC, whom to interact with, how to filter transactions, and more. Users deserve the flexibility to make their own decisions,” Marko clarifies.
Privacy and Trust Through Advanced KYC
Addressing privacy concerns, Graphite’s multi-tiered KYC framework is another standout feature. It starts with a simple social media authentication process and will expand to include additional levels of verification. All KYC interactions occur off-chain, ensuring user data remains private while still meeting the transparency demands of businesses and regulators.
“We’re combining privacy with trust,” Marko elaborates. “Using Zero-Knowledge Proof (ZKP) technology, we verify user information without accessing or exposing sensitive data. This ensures that users retain control over their information while businesses gain the confidence they need to interact securely.”
Graphite also eliminates the need for repetitive KYC processes across platforms. Users complete verification once, and partnered platforms can request specific confirmations—such as age or location—without accessing original documents.
“It’s a privacy-first approach,” Marko adds. “And it’s far less invasive than traditional financial systems that often exploit user data.”
High-Performance Transactions for Mass Adoption
Graphite is designed with mass adoption in mind. Capable of processing up to 1,400 transactions per second (TPS) with confirmation times under 10 seconds, the network is leagues ahead of Ethereum’s 15-20 TPS. Throughput of this magnitude, achieved by the PoA Polymer 2.0 algorithm, ensures predictable fees that remain close to the minimum, making the blockchain accessible to everyday users.
“Current Layer-2 networks often depend on Ethereum’s gas fees, which are inconvenient for ordinary users. Graphite is removing that bottleneck,” Marko explains.
To further simplify adoption, Graphite is fully EVM-compatible, allowing developers to seamlessly migrate existing Solidity smart contracts.
“This doesn’t aim at replacing Ethereum,” he clarifies. “It’s about enhancing usability, lowering barriers for developers, and maintaining decentralization.”
Bridging TradFi and Web3
Marko points out that TradFi institutions have historically avoided blockchain because of its association with anonymity. To change that, Graphite has built tools to offer clarity for TradFi without compromising on user privacy.
“Tools like reputation assessments will help banks and financial institutions interact seamlessly with blockchain technology,” Marko states.
With Graphite, financial institutions get the freedom to design smart contracts that meet their specific reputation criteria needs. Marko shares an example:
“A bank could create a smart contract to offer loans exclusively to users with a predefined Trust Score, ensuring compliance with regulatory and business requirements. This kind of tailored interaction is something no other blockchain currently offers.”
Tagged Addresses & Ticker System
Graphite’s innovations don’t stop at privacy and fairness. It has introduced some other unique features geared towards simplifying adoption and ensuring transparency. For example, tagged addresses allow users to label specific wallets. Charitable donations, for instance, can be tagged, ensuring funds are used appropriately. If those funds are misused, it’s immediately visible on the blockchain.Then there’s the ticker system, marked with Graphite’s symbol @G.
“This feature brings clarity to the ecosystem,” Marko explains. “For example, if a stablecoin is integrated with our blockchain, its ticker—like USD@G—instantly identifies its network. It’s a simple but powerful way to clear up confusion.”
A Vision for the Future
Graphite Network’s roadmap includes KYC as-a-service that will enable users to complete verification once and apply it across platforms seamlessly. Plans also feature open-source Peer-to-Peer (P2P) lending and insurance, leveraging Trust Scores for decentralized credit and community-driven risk management.
“We’re building a blockchain ecosystem that’s fair, secure, and accessible to everyone,” Marko concludes. “And we’re not here to promise solutions; we’re here to deliver them.”
It’s a bold vision, but if Marko and Graphite have their way, it could be the reset the blockchain industry has been waiting for.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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