Graphite Network Launches Next-Gen Blockchain with Passive Income for Node Operators and Trust-Based Security

Graphite Network has introduced a next-generation Proof-of-Authority (PoA) blockchain utilizing the Polymer 2.0 algorithm that converges traditional finance (TradFi) with the capabilities of Web3. Graphite is designed to give businesses, developers, and everyday users an advantage with unique features like income generation through Entry-Point Nodes—an industry first—along with a reputation-based scoring system and a secure, multi-layered KYC process that together enhance both user trust and active participation in the blockchain ecosystem.

Income from Entry-Point Nodes

Unlike other blockchains, where revenue typically relies on tokens or external monetization, Graphite enables entry-point (transport) node operators, including non-validators, to earn passive income directly from transaction fees routed through their nodes. By running a node, operators contribute to the network’s activity and earn 50% of the fees from transactions passing through their nodes, with the remaining 50% going to the block sealer. 

This means that small to medium enterprises, startups, and developers can now generate passive income from transaction fees without needing to take on large-scale validator roles, lowering barriers to blockchain integration.

Enhanced Privacy and Trust Through Reputation-Based System

Graphite’s blockchain is designed around a reputation-based architecture, providing users with a secure and trustworthy environment that respects both privacy and transparency. To support this model, Graphite has introduced the ‘One User, One Account’ policy, requiring users to activate their accounts with a small setup fee. This measure helps to prevent fraudulent activity, including the creation of numerous disposable wallets often used for suspicious transactions.

Among other reputation-centric features, Graphite will implement a multi-tiered KYC framework, initially offering social media authentication as the first level, with additional verification levels planned for a later release. All interactions with the respective KYC center are conducted off-chain, meaning private data remains secure while still meeting transparency requirements.

Each user’s reputation is represented by the Graphite Trust Score, which is influenced by a variety of parameters. In addition to the KYC verification level, the key factors include 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 fraud claims. These metrics collectively help identify and filter out transient or fraudulent activities by a user or an entity in order to support secure, reputation-based interactions across the blockchain.

Graphite will also allow businesses to develop their own customized, reputation-based smart contracts to tailor services to specific user criteria. For instance, a bank could create a unique smart contract to offer loans only to individuals who meet predefined reputation standards, such as creditworthiness or account longevity, in line with the bank’s regulatory and business requirements. In this way, Graphite can serve as a blockchain for bank compliance as its functionality and potential far exceed those of other blockchains.

Additionally, users will have the flexibility to set transaction filters based on KYC levels, enabling them to block interactions with accounts that don’t meet their preferred verification standards. Targeted jurisdictional filtering options are also in the pipeline to provide additional flexibility for businesses facing regional regulatory constraints.

Graphite is committed to maintaining privacy and reasonable anonymity—core values for most blockchain users. The Graphite Trust Score is stored on-chain as a numerical representation while private user data remains off-chain. In this way, Graphite’s data requirements are minimally invasive—far less intrusive than those required by traditional financial institutions, which often lead to user data being leveraged for sales purposes. In contrast, Graphite is implementing a Zero Knowledge Proof (ZKP)-based KYC system to verify information without accessing or sharing private data.

High-Performance Transactions and Seamless Integration for Mass Adoption

Geared towards mass adoption, Graphite’s transaction model offers both speed and scalability, processing up to 1,400 transactions per second (TPS) with confirmation times under 10 seconds to support high-volume usage. For comparison’s sake, this far outpaces Ethereum’s current infrastructure, which supports only 15-20 TPS. Due to this high TPS capacity, Graphite’s network fees are predictable and stay close to the minimum, allowing users to plan their expenses with confidence.

Meanwhile, compatibility with the Ethereum Virtual Machine (EVM) enables seamless integration of existing Solidity smart contracts, allowing developers to migrate applications to Graphite easily and benefit from its PoA efficiency.

Building Confidence in Crypto: Graphite’s Strategic Path Forward

Graphite Network’s roadmap includes organic extensions of blockchain functionality, such as KYC as-a-service, which will allow users to complete KYC verification once and seamlessly apply it across partnered platforms. 

It also plans to introduce open-source Peer-to-Peer (P2P) lending, enabling users to take on roles as lenders or borrowers and to use Trust Scores and reputation metrics for a decentralized approach to credit within the network. Similarly, P2P insurance will allow participants to form their own cooperative insurance pools in order to manage and mitigate risk through community-driven coverage options.

The future of blockchain is unfolding with Graphite Network which merges the best of traditional finance with cutting-edge Web3 capabilities to make blockchain secure, accessible, and viable for widespread use across sectors. Its low barrier to entry, reputation-based interactions, and privacy-centric KYC model address common crypto adoption concerns. 

“For many people, crypto still feels uncertain—there’s a lack of trust, fears of financial loss, and concerns about scams. While this is a complex problem, Graphite marks a huge step forward in blockchain evolution by merging blockchain technology with a trust-based, inclusive financial model that enables both TradFi and Web3 users to participate securely,” said Marko Ratkovic, the CTO at Graphite Network.

About Graphite Network

Graphite Network is a next-generation Proof-of-Authority (PoA) blockchain platform designed to bring the advantages of traditional finance into the Web3 world. Built with a focus on sustainability and reputation, Graphite combines transparency, efficiency, and privacy to create a secure ecosystem for users and developers. The Graphite ecosystem offers key tools including Graphite Wallet for feature access and KYC, Graphite Bridge for cross-network interoperability, and Graphite Explorer for real-time blockchain data analysis. Developers also benefit from comprehensive API Documentation for easy application integration and a Faucet for Testnet Funds to support experimentation. With these tools, Graphite Network provides a user-friendly and versatile platform, accelerating blockchain adoption across various industries.

Website: https://atgraphite.com/

X: https://x.com/GraphiteNetwork

Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Stock Invest journalist was involved in the writing and production of this article.