This article was first published on ARK.io | Blog - Medium
by François Thoorens, Joshua Noack and Kristjan Košič
Proof-of-Stake (PoS) systems have long been known to have a ‘Nothing at Stake’ problem. In this article, we describe a new Delegated-Proof-of-Stake (DPoS) consensus rule that will not only help alleviate this problem, but also form a stronger consensus layer. We believe this is a groundbreaking innovation that can make DPoS networks safer and more secure.
The ARK Blockchain Platform incorporates a consensus mechanism that is our variation of the DPoS model originally designed by Daniel Larimer of Bitshares. The primary concept is the addition of a sensible weakening assumption in the consensus to make PoS possible. That assumption is to choose a maximum number N of block producers at any point in time.
Advancing From Proof-of-Work to Proof-of-Stake
Traditional Proof-of-Work (PoW) based networks (Bitcoin, Ethereum) utilize computational might of the machines working (miners) to solve hashing problems to form a hierarchy of weight within the network. With the advent of PoS, this weight calculation shifted from computational might to an economic model that determines an account’s standing within the network based on the number of tokens held, or their “stake” in the network’s success. In most PoS systems you must keep your wallet open and connected to the internet rather than utilizing a stand alone miner, turning your wallet into a node on the network.
The Delegated Proof-of-Stake Evolution
Delegated Proof-of-Stake or DPoS is a consensus model that further enhances the benefits of PoS. In this model, instead of individuals using wallet balances to determine whether their nodes forge blocks, a distributed collective of nodes called “delegates” control the ledger and validate and forge the blocks. This opens doors to sizable performance improvements, such as decreased transaction times, blockchain upgrade lead times and block size modifications.
There is no limit to the number of delegates ...
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ARK.io | Blog - Medium