The consensus protocol is the dynamic method through which blockchain systems reach an agreement and make decisions. Symbol utilizes an innovative mechanism called the Proof-of-Stake Plus, a modified version of the popular Proof-of-Stake (PoS) protocol.
In a basic Proof of Stake consensus algorithm, the formation of a subsequent block in a blockchain is stochastically assigned to a coin-holding stakeholder of the blockchain weighed by a combination of factors relating to the stakeholders’ wealth. The PoS+ protocol also considers accounts’ stakes, but it is designed to promote the ecosystem’s health by rewarding participants based on their activity.
The algorithm considers the following factors to improve the ecosystem’s health perspective:
All high-value accounts receive an importance score based on these three factors that determines the probability to harvest a block.
The network calculates the following sub scores for all high-value accounts for each factor:
Each network can define custom consensus algorithm constants.
|a||0.05||Network wide contribution of activity score.|
|p||10000||Constants to tune phasing out of activity score.|
|t||0.8||Transaction score multiplier.|
|n||0.2||Node score multiplier.|
The importance can be calculated for each account in the following manner:
The combination of Transaction Score and Node Score has a multiplier effect when Stake Score is low. Conversely, the multiplier effect is insignificant when Stake Score is high.
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