Proof-of-Stake enters in the SINOVATE blockchain.
On the 31st of March 2022, SINOVATE Network will operate a hard fork that changes the block validation mechanisms consistently. It brings more considerable scalability and security in the blockchain, which is beyond the VISA throughput. The Proof-of-Stake (PoS) works then cooperatively with the original X25X Proof-of-Work (PoW) mechanism for guaranteeing the authenticity of the SINOVATE peer-to-peer (P2P) network.
How to prove the authenticity of the SINOVATE blockchain?
The SINOVATE blockchain like Bitcoin or Ethereum requires mechanisms to validate new blocks generated by the network’s peers. As many peers propose a new block, the network must select only one to put in the blockchain. This is equivalent to the Byzantine Generals Problem. In a blockchain, the network must decide which block is good by only transmitting messages. Hence, the decision can only be possible if all the peers follow an ensemble of rules that guarantees the block is right. It is called the Nakamoto consensus.
SINOVATE uses the PoW mechanism, a cryptographic proof in a peer-to-peer network where peers provide a computational effort to validate blocks. To execute this effort and know-how to do it, it must be based on a “mining” algorithm X25X. X25X is dedicated to GPU mining and tends to be ASIC and FPGA resistant (special equipment only dedicated for mining). This resistance is guaranteed by shuffling 25 mining algorithms from different PoW projects. This approach ensures the best degree of decentralization and security. In this way, the SINOVATE blockchain performs a proof-of-authenticity of the blocks committed by the peers.
Proof-of-Stake will make SINOVATE a reliable Cloud
Whereas the X25X PoW solution ensures proof of authenticity, this approach requires a lot of time to validate the consensus between peers. This limits the scalability considerably, which means the number of transactions per second that the blockchain can operate.
Another solution is to use consensus that requires less computational efforts from the network, such as Proof-of-Stake (PoS). PoS is a cryptographic proof in a P2P network where peers provide their stake instead of computational effort to create valid blocks. A stake is based on the number of coins held, yet fair participation for all is enforced through heavy maturity requirements on stake transactions.
This allows any user with SIN coins to participate in the network by validating transaction blocks, increasing the network’s scalability, and making profits with the distribution of rewards. SINOVATE uses this approach alongside the PoW mechanism, which guarantees a high degree of decentralization (millions of validators), scalability (+2,000 TPS), and security (InfinityNode LockReward and Proof-of-Burn).
The features of SINOVATE Proof-of-Stake
To be eligible for staking, PoS of SINOVATE (called PoS4) integrates a novel feature called LockStake, where a transaction also must not be spent for a considerable time. This safety guard ensures a lower attack surface of an already complex vector. Hence, the stacker must wait for around 14,440 blocks (10 days approximately one block per minute) to become a stacking validator. SINOVATE forces the confirmation of a block to 1,440 blocks. Conclusion This long waiting time and the long period of confirmations allow reducing the attacker’s success rate.
Additionally, PoS4 is considering implementing Casper and Slasher elements for a unique mechanism. The idea is to penalize the stackers who commit an invalid block (like an attacker or an invalid operator). Casper and Slasher are still in progress in Ethereum development. We will track this closely to take advantage of these novel features associated with our technologies, such as the Proof-of-Burn (PoB) mechanism.