Consensus

The primary goal of the consensus protocol is to provide a mechanism for all the parties involved in the network to reach an agreement on the current state of the blockchain and to ensure that all the transactions included in a block are valid and that the blockchain state is updated consistently and securely on all levels. Overview​

The Neoxi Ecosystem utilizes a Proof of Stake (PoS) consensus mechanism with The Byzantine fault-tolerant (BFT) algorithm to reach a consensus agreement between validators. This approach ensures network security and provides Sybil resistance.

The validator maintains the network's security by staking its Neoxi Ecosystem tokens and committing to participate in consensus rounds with other validators. By staking their tokens, validators demonstrate a vested interest in the network's wellbeing and help to achieve Sybil resistance. The more tokens staked on the network, the more difficult it becomes for an attacker to create multiple identities and gain control over the network.

The validator proposes candidate blocks and votes on blocks proposed by other validators, utilizing the Byzantine fault-tolerant (BFT) algorithm to ensure a reliable consensus process. The protocol proceeds through a series of rounds, each with a set of validator nodes responsible for proposing, validating, and committing blocks. If a proposed block receives approval from 2/3 of the validator nodes, it commits to the blockchain. If the proposed block does not receive approval in a specific time, it is skipped, and the next round begins.

Consensus algorithms can be broadly divided into two classes: those that allow for the creation of multiple chains at the same time (forks) and those that do not allow for forks. In other words, a consensus may have probabilistic or deterministic finality.

Deterministic finality refers to the idea that once a transaction has been committed in a block and added to the blockchain, it is considered final and cannot be reversed. This is important for the security and integrity of the network, as it ensures that transactions cannot be altered once they have been recorded on the blockchain. For example, in the context of Bitcoin, a transaction is considered to be final only in probabilistic nature. The transaction's reverse probability decreases as more blocks are added to the chain after it.

The Neoxi Ecosystem Protocol belongs to the deterministic finality class of algorithms. It ensures the finality of transactions at the commitment stage. Using a BFT makes it almost improbable for forks to occur, as they can only happen in the event of incorrect behavior by a majority of validators.

Delegated staking pools​

Participants with minimum Neoxi Ecosystem can participate in the validation process through delegated staking pools. This mechanism allows network participants to delegate their stake to other participants or organizations who will serve as validators. Token holders can stake their tokens in specific validators — the more tokens staked in a validator, the more weight it carries in the consensus voting process. It gives token holders a say in who becomes a validator by choosing which validator candidates to delegate their stake. This helps to ensure that the validator set is representative of the interests and goals of the broader community.