IgniteChain Consensus: understanding the Proof-of-Reward

IgniteChain Consensus: understanding the Proof-of-Reward

Consensus protocols are an important part of many distributed systems, including blockchain networks and distributed databases. They help to ensure the integrity and reliability of these systems by enabling nodes to reach an agreement on the same data or state.

From a technical point of view, the Ignite Chain is built upon existing proven blockchain innovations and novel technologies that are created for achieving mass adoption. These technologies include a Proof-of-Stake (PoS) consensus mechanism, meta-transaction features, protocols of transaction fee delegation, on-chain governance, built-in smart contracts as well as tools for developers.

Ignite Consensus Protocol

If a sufficiently large portion (alpha α) of the validators sampled reply that they think the transaction should be accepted, the validator prefers to accept the transaction. That is, when it is queried about the transaction in the future, it will reply that it thinks the transaction should be accepted. Similarly, the validator will prefer to reject the transaction if a sufficiently large portion of the validators replies that they think the transaction should be rejected.

The validator repeats this sampling process until the alpha of the validators queried replies the same way (accept or reject) for beta β consecutive rounds.

In the common case when a transaction has no conflicts, finalization happens very quickly. When conflicts exist, honest validators quickly cluster around conflicting transactions, entering a positive feedback loop until all correct validators prefer that transaction. This leads to the acceptance of non-conflicting transactions and the rejection of conflicting transactions.

IgniteChain's consensus for validating transactions

IgniteChain network is using reward-based validation (Proof-of-Reward) with the security of Proof-of-Stake (PoS) consensus in process of validating & broadcasting transactions on the network.

In Proof-of-Reward (PoR) consensus, every node is rewarded for the transaction they sign right after the transaction is processed and broadcasted on the blockchain network. The validator of the transaction is incentivized by the gas used to execute the transaction. This consensus system is also called Reward based validation. It is the latest consensus introduced by Ignite Chain team. 

Beginning with the core algorithm YAN, IgniteChain is working on purpose-built procedures & practices making it distinctive to preciously built blockchain networks.

What is YAN: Yantra (YAN) is the core of the consensus algorithm for IgniteChain. It executes every method and logical statement in a cryptographical manner to run the consensus.

Proof-of-Reward (PoR) Consensus

We have put more than 20 years of combined research together to come up with a solution that involves the whole community and does not just incentivize node operators. With the use of the Reward Protocol, this consensus creates a stamp of every transaction by comprising transaction (TNX), sender (U), validator (V), contract developer (D), foundation (F), and system (S).

TNX, U, V, D, F, S, G = gas;

Validator Reward (V) = G / 2;  [ 100 / 2 = 50 ]

Sender Reward (U)  

If TNX Gwei < 5 { U = G / 4 }  [ 100 / 4 = 25 ] 

If TNX Gwei < 9 { U = G / 3.45 } [ 100 / 3.45 = 29 ] 

If TNX Gwei > 9 { U = G / 3.03 }  [ 100 / 3.03 = 33 ]

Developer Reward (D) = G / 14.29;  [ 100 / 14.29 = 7 ]

Foundation (F) = (G / 3.03) - U;  [ (100 / 3.03) - U = 8, 4, 0 ]

System (S) = G / 10;  [ 100 / 10 = 10 ]

Whenever a transaction is requested from the user, the reward protocol executes the reward-distributing smart contract. All the comprising addresses are put in the contract queue to broadcast the transaction on the IgniteChain network. All rewards are incentivized with IgniteChain network’s native IGT coin.

Validator reward is split into two portions: 1. 50% goes to the node operator and the other 50% is shared among the delegator to that particular master node. The Masternode with the highest delegator is prioritized and gets a high chance to validate the transaction. From the total amount of Masternode, a maximum of 251 gets to run the network and validated procedure. All node operators are required to stake 50,000 IGT tokens to be able to become Masternode and participate in the transactions validating process.

Reward Protocol

Ignite Reward Protocol is the structure of PoR consensus. It is called before broadcasting transactions on the IgniteChain network. Reward protocol calculates every transaction-associated gas fee and distributes it to comprising recipients’ addresses to create a stamp of transaction execution.

PoS(V) in IgniteChain

As Proof-of-stake is a very popular consensus mechanism, it provides a highly secure operational structure to the blockchain network. We are using the sub-consensus of PoS, called Proof-of-Stake Voting combined with our own Proof-of-Reward (PoR) consensus. The reason behind choosing PoSV is that it ensures the true structure of decentralization. Every IGT token holder gets a chance to participate in process of securing the IgniteChain network by staking & voting validators. Voting in PoSV is a continuous process and each Masternode on top is always at risk of being replaced by another master node that gets more votes. Masternode with higher votes is considered more as its chances of validating transactions and Masternode capacity increases rapidly. As the number of masternodes & delegators grows, increasing Masternode capacity becomes significantly important for every masternodes.

IgniteChain Resources:

Website: https://ignite.info/
Explorer: https://ignitescan.com/
Docs: https://ignitechain.gitbook.io/ignitechain-docs

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