Blockchain more than just another trendy word; it is a complex ecosystem. Digital ID entities are an important part of a technology which is built to eliminate third-party interference. However, not all of them are secure to use. Recent Microsoft research shows that in order to make decentralized digital identities safe, we need to take a more serious approach in terms of security and individual privacy. According to Microsoft, hybrid consensus algorithms are far more secure than single ones. Reaching a consensus between the relevant parties has been a crucial part in the ledger-based history of the blockchain ecosystem, and we are now at a point where more effective and sustainable solutions are needed.
Enecuum builds a distributed cryptocurrency system that takes into account the advantages and drawbacks of various consensus algorithms, using the best and most valuable practices of previous initiatives. We are the first company to develop a hybrid consensus algorithm mechanism that allows PoW (Proof of work), PoS (Proof of Stake) and PoA (Proof of Activity) to be used simultaneously and proportionately.
Proof of Activity is an innovative consensus algorithm that will be used by Enecuum for the first time ever. It represents an important upgrade to mining and the overall security around it. The system is built upon a foundation of three main mining stages: PoW, PoA and PoS.
There are two approaches to consider at the PoW stage. In the first approach, PoW miners who are connected to the network search for a block hash of various sizes. Upon finding a hash that satisfies the current complexity, the block is filled with transactions and transmitted to the network for the second stage — transaction verification by PoA miners, who then fill the block with transactions themselves. In the second approach, upon finding the block hash, the PoW Miner keeps it open for PoA miners, who fill it with transactions. PoA is to be applied at two different stages.
PoA miners are to reach a consensus to form ‘a team’ of 64 participants. Each team then validates a chain of 62 microblocks with 40 transactions each and publishes them on the network, filling the blocks opened by the PoW miners.
The PoS miners play a different role in the ecosystem. They will need to constantly check the wallet balances to receive a reward for mining. At the same time, the system automatically determines the minimum and maximum levels of balance to be taken into account during the miner’s activity. The reward of the miner is defined by confined within these thresholds, and will grow as the wallet balance increases from the minimum to the maximum level.
Unlike the existing reward methods, in which the network generates new coins immediately after a valid block is found, Enecuum will immediately calculate the wallet address, with the actual mining reward distributed on average once a day. This helps to protect the network from hacking the mining algorithm or gaining control over most of the computing power.
In Enecuum, the reward for mining will be distributed between its participants as follows: PoA — 70%, PoW — 20%, PoS — 10%. However, due to its statistical awareness, the system will be able to change this distribution in order to avoid system imbalances.
PoA mining at Enecuum requires a strong and steady Internet connection, but does not need high computational power and can even be performed on mobile devices. There, the system is not only less prone to hacker attacks, but also more truly and fully embodies the idea of decentralization.
Enecuum has recently launched a testnet emulation with the mainnet and emission scheduled in the next month. Additionally, our PoA code is open-sourced, and is available on github.
Take a look and tell us what you think!
