VPoW (Voting Proof of Work)
VPoW is the Xenea's proprietary consensus algorithm consisting of Voting and Escrow nodes. The algorithm aims to solve the following problems found in each of the consensus algorithms and enable large-scale decentralization, thereby enabling secure transactions and transfers of assets for decades and centuries to come.
Other Consensus Mechanism Problems:
PoS (Proof of Stake)
Security dependent on token price
Centralization of power through a “rich get richer” structure
PoW (Proof of Work)
Consumption of large amounts of energy and natural resources
Centralization by minority groups with capital to invest in significant computing resources
VPoW is a hybrid consensus algorithm consisting of an authorized Escrow node and a Voting node in which anyone can participate. Usually, the Voting node refers to the user's wallet. Originally, VPoW's Voting Node was designed to allow anyone to participate unconditionally, but to prevent Sybil attacks, minor conditions are imposed on the requirement to participate as a Voting Node.
To reduce the probability of parties with mal intent joining the consensus, the selection of both Escrow and Voting nodes is conducted randomly. Escrow nodes are randomly selected based on a determined transaction volume. In addition, Escrow nodes receive transaction confirmation status from randomly selected Voting nodes.
Voting nodes selected by Escrow nodes participate in the transaction confirmation for a period of 10 blocks (i.e., 10 minutes). Five of the seven selected Voting nodes, excluding the sending and receiving nodes, vote True/Not-True for each transaction, where the Escrow nodes determine the validity of the transaction using a decision-making formula. In the meantime, tokens are held on Escrow nodes; if the sum of the True/Not-True results reaches or exceeds 75% of the threshold, the tokens on Escrow are released and the transaction is finalized.
Escrow and Voting nodes participating in VPoW earn fees and block rewards for each confirmed block based on the distribution ratio specified by the protocol. The block rewards have a half-life/halving every two years.
For more information on VPoW, please refer to our Whitepaper.
Related Articles
High Secure Mobile Wallet for Token Transfer using Escrow Account on PoA Voting Blockchain https://ieeexplore.ieee.org/document/10315485
Voting blockchain for High Security NFT https://ieeexplore.ieee.org/document/9621968
Implementation of Smart Contract on Autonomous Decentralized Voting Blockchain https://ieeexplore.ieee.org/document/10092152
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