Consensus mechanism

Consensus is the fundamental process through which nodes in a blockchain network reach agreement, ensuring consistency in three key aspects:

Termination: All nodes must unanimously agree on a singular outcome.

Value Selection: The system chooses a value within a finite time, avoiding indefinite algorithm runtimes.

Consensus Mechanism: Often regarded as the backbone of blockchain technology, it plays a crucial role in the system's integrity and functionality.

The architecture of the consensus mechanism is pivotal in establishing a well-structured incentive system. This incentivizes broader node participation, thereby enhancing the system's decentralization. A notable challenge in most public blockchain networks is the inverse relationship between the number of nodes and transmission speed. Therefore, achieving a balance between the number of nodes and overall system performance is crucial. Commonly used consensus mechanisms in blockchain include Proof of Work (POW), Proof of Stake (POS), Delegated Proof of Stake (DPOS), Byzantine Fault Tolerance (BFT), among others.

DigiNetGuard leverages an innovative hybrid consensus mechanism, POS+DPBFT, to safeguard cryptocurrency networks. This method combines the strengths of both POS and DPBFT to create a more efficient, commercially viable system.

POS (Proof of Stake) allocates network responsibilities based on the quantity and holding duration of system tokens, competing for transaction validation rights. Unlike POW, which relies purely on computational power, POS introduces more systematic and efficient structures suitable for commercial applications. Its key advantage lies in reducing mining difficulty proportional to the token ratio and duration held by each node, thus speeding up consensus achievement and negating the need for energy-intensive mining. However, POS is not without its shortcomings, including vulnerability to certain types of attacks and limitations in addressing commercial application pain points.

DPBFT (Decentralized Practical Byzantine Fault Tolerance) enhances the original Byzantine fault tolerance algorithm's efficiency, making it viable for real-world applications. Unlike probabilistic mechanisms like POW, DPBFT is deterministic, synchronizing all nodes in the network to maintain consistent and secure data. It effectively addresses issues like double spending at the consensus level. Within this system, certain nodes function as validators, while others serve as observers.

These nodes communicate to efficiently reach consensus on data, following the majority principle among validator nodes. DigiNetGuard's adoption of the hybrid POS+DPBFT mechanism at the consensus layer is a crucial element in sustaining the ecosystem's health, preventing hard forks, and securing the main chain. Observer nodes can dynamically enter or exit the validator pool through the POS method of staking and election, preserving decentralization and allowing scalability for future growth.