How SPoS sets itself apart by adding more equitable factors to bring democracy to Proof of Stake.
In our previous post [link to Comparing 5ire SPoS article, we had discussed at length the differences between 5ire’s proprietary ‘Sustainable Proof of Stake’ (SPoS) consensus algorithm with the standard Proof of Stake (PoS), the Nominated Proof of Stake (NPoS), and the Delegated Proof of Stake (DPoS) consensus algorithms. We will be discussing the elements of SPoS at length here and further defining the embedded features that make up the consensus, their weightage, and some predictions about their impact in deciding various functionality around picking nodes and validation of transactions.
5irechain, the proprietary 5ire blockchain, calls its consensus protocol the sustainable proof of stake (SPoS). SPoS has been made more democratic by considering multiple factors beyond the staked amount when a node is assigned based on Stake, Reliability, randomized voting, sustainability score (Environmental, Social \& Governance), and previous nomination.
This way, the SPoS provides certain advantages over other consensus algorithms. These advantages go beyond what proof of stake(PoS) consensus mechanism provides over proof of work (PoW) consensus mechanism.
Per SPoS, each node getting the maximum weight will be selected for the assembly of the blocks for the next 12 hours, after which time the process of choosing the subsequent nodes will start again. Table 1 outlines the factors along with the corresponding weights they carry.
It should be understood that SPoS ensures that a node having a higher stake should get the higher priority, but to make it more democratic, it believes that stake should not be the only criteria for selecting the node. The impact of the stake being the primary method of selecting nodes discouraging the participation of nodes with smaller stakes or nodes, which cannot coerce other nodes to nominate them. The SPoS mechanism also wants to reward the loyal nodes, which are always there and hold the stake for a more extended period of time. Similarly, the mechanism further ensures that ESG compliance further rewards the nodes for being there for the benefit of society as a whole.
Along with the requirement of ESG compliance and giving it a sizable 20% weight, SPoS also uses Randomized voting to make the node selection more democratic. The randomized voting carrying 20% weight ensures that nodes having a lower stake can still be selected for the assembly of the block. This 20% weight helps us curtail the cartelization of the network where nodes can create a nexus among each other by nominating or delegating their stake to favorite nodes each time. Randomized voting also helps us select the attesting nodes, which will verify the authenticity of the block.
Along with randomized voting, nodes are assigned a reliability score based on the time nodes have been online and the time they have held the stake for at the time of the voting. This incentivizes participation in the network.
The proposed consensus mechanism considers the sustainability score consisting of environmental, social, and governance scores of organizations or individuals running the nodes.
Initially, we will assign these scores depending upon credible inputs obtained from trusted authorities. Later, when the 5ire ecosystem stabilizes, there will be a decentralized mechanism to assign and update the sustainability scores.
In this manner, weighted elements other than the stake ensure the democratic participation of smaller nodes and makes the entire chain more sustainable.
More information about 5ireChain can be found by clicking on the following links:
White paper: https://bit.ly/5ireWP