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Consensus is a mechanism according to which validators come to an agreement regarding one block and even each transaction.

On DecimalChain, as on any other blockchain, the consensus algorithm describes how network nodes determine "fair" and "unfair" transactions and blocks.

Decimal consensus algorithm

The Decimal network is based on the Tendermint engine and uses the consensus algorithm Delegated Proof-of-Stake (DPoS). This consensus algorithm is considered the most modern, environmentally friendly and promising.

The essence of DPoS is that all network participants can transfer their coins (delegate) to certain nodes (validators). Only validators form, protect and ensure the operation of the blockchain. For this, the Decimal network pays validators a reward for each block created. The block reward is divided between all validators in proportion to their stake (balance), and the validators, in turn, distribute this reward between the delegators in proportion to their share (the number of coins sent to the validator). All processes occur automatically, through the operation of the software, and no human factor can interrupt the process.

Any changes can be brought to the network only if the majority of validators agree to "download" the update data. Thus, every 120 blocks (approximately 10 minutes), the delegator receives a reward in proportion to the delegated stake.

Each validator sets a fee, a percentage of the awards transferred to delegators. The validator sets the fee once, and it cannot be changed any more.

Tendermint protocol

Tendermint is an advanced solution to the issue of consensus which guarantees the correct operation of the network as long as at least 2/3 of the nodes of the blockchain network involved in the formation of blocks are working correctly. In other words, Tendermint provides efficient relay of changes in the blockchain throughout the network, ensuring that each node has the same transaction log and the state of the blockchain.

Stake and responsibility

Stake is an indicator of the financial interest which serves as a guarantee that the validator will not violate the rules of the network. For unfair actions, validators are automatically fined by the network, so the delegators are also financially responsible for choosing a validator: the entire validator's stake, in which the delegator's funds are also located, is fined.

Stake review

The Tendermint protocol provides for temporary blocking of the stake when it is recalled from the validator.

On the Decimal network, this period is approximately 30 days (432,000 blocks after the recall). At the time of blocking, the stake is excluded from the reward calculations.

This measure was introduced to protect the network from unscrupulous actions of validators and generally increases the stability of the network, because delegators cannot move their stakes too often, and therefore they are more responsible about choosing a validator.

See also