Introduction

This section introduces the concept of Xenea and its technical specifications.

Blockchain technology has brought about a major change in the way users conduct their daily transactions. The current Internet is dominated by giant technology companies acting as middlemen exploiting the Internet Furthermore, they arguably hold a monopoly on personal information and identities, thus creating an oligopoly of profit making.

On the Web3 Internet, people do not need someone else to trust to properly record transactions on their behalf. In the current financial system, on the other hand, you need to trust a banking institution to properly record your transaction history.

To achieve a trustless environment, blockchain networks need to have strong consensus mechanisms. Two well-known consensus mechanisms are Proof-of-Work (PoW) and Proof-of-Stake (PoS). PoW requires excessive computing power for its mining process. This has been said to have a negative impact on the environment. Bitcoin, the most popular cryptocurrency, is based on PoW.

PoS, on the other hand, allows block verifiers to decide which blocks to add to a blockchain without requiring the massive computing power. There are many blockchains utilizing the PoS algorithm. Ethereum, the second most popular blockchain after Bitcoin, has also shifted its consensus algorithm from PoW to PoS. PoS is to be commended for having solved the scalability problem of PoW and allowed for low-cost, high-speed transactions with a small number of nodes, which delivered many practical applications and dApps in the recent years.

However, it should also be considered that the approval process performed by nodes determined by regular rules is vulnerable to attack, and the loss of decentralization that is a trade-off for fast processing speed could be a possible security concern.

Xenea is based on a proprietary consensus algorithm called Proof-of-Democracy (PoD). We will elaborate and describe the details of this consensus algorithm throughout this document.

First, one node out of all available nodes on the network will become the Escrow node or Voting node. This node will vote to test the validity of all new transactions, those of which receiving at least 75% validity votes will be included in the block. Additionally, Xenea will be open to the public so that any node can participate in our system. This blockchain will fulfill all required functions such as transaction ability, wallet creation, verification, peer-to-peer network connection, encoding/decoding, and node selection.

The main purpose of the blockchain is to learn from and improve upon the previous blockchains already in use.