PoSA Consensus

Consensus Mechanism

The consensus algorithm can be defined as a mechanism for achieving consensus on a blockchain network. Public (decentralized) blockchains consist of decentralized systems, and do not rely on central authorities. Thus, decentralized nodes need to agree on the validity of transactions. This is where the consensus algorithm starts. The consensus algorithm verifies that protocol rules are being followed and ensures that all transactions are conducted in a reliable manner, ensuring that the coin is used only once (preventing double payments). Furthermore, the performance of the blockchain network depends on the performance of the selected consensus mechanism, which has a significant impact on the usability of blockchain applications.

  • Processes 5,000 transactions per second.

  • Pursuing immediate transaction finality.

  • 3 second block creation time

  • More than 20 consensus nodes can participate in the consensus.

PoSA(Proof of Staked Authority)

The PoSA consensus algorithm is a hybrid mechanism that combines the PoS (Proof of Staking) consensus mechanism and the PoA (Proof of Authority) consensus mechanism.

FNCY Chain is a public blockchain, and block generation is possible only by Authority Members (FAM: FNCY Authority Members) who have been authorized in advance. In order to give a physical penalty (slashing), a certain amount of $FNCY must be staked as a requirement.

As a result, PoSA consensus model of FNCY chain supports shorter block generation time and lower cost. Adopting PoSA consensus algorithms also provides decentralization and community engagement.

  1. FNCY coin holders can delegate their coins to validators or candidates.

  2. The ranking of validator candidates is determined by the number of FNCYs deposited, and the top validator candidates (Candidate Validators) are elected as Active Validators.

  3. However, the number of Active Validators is determined by governance.

  4. Delegators will receive block rewards after paying a certain fee to the delegating validators.

  5. Validators are subject to slashing penalties for bad behavior, such as double signing and node instability.

  6. To unbond FNCY coins, validators and delegates must wait for an “unbonding period.” Blockchains need an unbonding period to prepare for possible misbehavior of validators.

Validator Selection

As mentioned above, in order to become a validator, more than a certain amount of $FNCY is required for staking, and the selection of an active validator is determined in the following order.

  1. Candidate Validator: To become a validator candidate, a certain amount of $FNCY coins must be deposited as collateral.

  2. Voting Period: Active Validators submit proposals to add new validator candidates to the Commiter. During the voting period, Active Validator Operators can vote for, against, and abstain. When a proposal reaches a quorum or a minimum threshold defined by the protocol, it is passed onto the next stage.

  3. Authorized Validator: When a proposal is accepted by multiple Active Validators, the Proposed Validator immediately becomes an Authorized Validator.

  4. Active Validator: At the next epoch, the consensus engine selects a top Authorized Validator as the Active Validator to propose blocks and secure the network.

Only Active Validators can participate in voting, proposals, and block creation. The number of Active Validators can be regulated by governance, and Active Validators are selected by the staking quantity of $FNCY.

Validator StatusDescription

Candidate Validator

A certain amount of native asset ($FNCY) must be deposited as collateral to become a Candidate Validator

Authorized Validator

An Authorized Validator will submit a proposal of adding a new validator into the Committer. Once the proposal is accepted by the majority Authorized Validators, the Proposed Validator immediately becomes an Authorized one as well.

Active Validator

In the next epoch, the consensus engine selects the top Authorized Validators to be Active Validators to propose blocks and secure the network.

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