DEPRECATED: Proof of Claim Explained: Part 4 — The Consensus Algorithm — Quorums and Conflict Resolution
This article is deprecated and no longer accurate. Visit https://versatus.io/blog for Versatus updates and news.
The Versatus protocol, which utilizes a unique transaction validation process to ensure security and efficiency. In this blog post, we’ll discuss the formation of quorums, the use of Dealerless Distributed Threshold Keys and Signatures for certification, and the efficiency components of the Versatus transaction validation process, and thus consensus algorithm.
This is Part 4 of our series describing the Versatus consensus algorithm (Proof of Claim), for a refresher, check out Part 1, Part 2 and Part 3
The Election of Farmer and Harvester Quorums
In the Versatus protocol, there are two types of quorums: Farmer Quorums and Harvester Quorums. These quorums are groups of nodes that are elected to perform specific tasks in the network. The election process is based on the Proof of Claim algorithm, which is a fast and decentralized method for selecting nodes. This ensures that the network remains secure and efficient.
What Makes a Node Eligible
For a node to be eligible to participate in a quorum, it must meet certain criteria:
a. Reputation Scores — A node’s reputation score is determined by its historical performance in the network. Nodes with higher reputation scores require lower stakes to become an eligible validator.
b. Stake — Nodes must also have a certain amount of the network’s native token staked to be eligible for participation in a quorum. This helps to ensure that nodes have a vested interest in maintaining the network’s integrity.
The Role of Farmers
Farmers play a crucial role in the Versatus protocol by managing the distribution of tasks to nodes in the network. They achieve efficiency through two main techniques:
a. Decentralized Task Scheduler (DTS) — The DTS is a method for distributing tasks among the nodes in the network. Instead of relying on a central authority to manage tasks, the DTS allows tasks to be allocated in a decentralized manner. This helps to ensure that the network remains efficient and resistant to attacks.
b. Left-Right Concurrency — This technique allows the nodes to process transactions simultaneously, increasing its throughput. With Left-Right Concurrency, the Versatus protocol can scale vertically with the RAM and CPU power of nodes in the network.
Farmers validate and execute (when necessary) transactions. Each quorum works on different subsets of pending transactions, with some redundancy to maintain fault tolerance. This allows for the parallel execution of transactions. Transaction are validated by farmers prior to inclusion in a block.
The Role of Harvesters
Harvesters are responsible for collecting votes on the validity of transactions and appending proposal blocks to the DAG (Directed Acyclic Graph). They have two main tasks:
a. Collecting votes on the validity of transactions — Harvesters gather votes from validators on whether a transaction is valid or not. These votes are then used to determine if a transaction should be included in a proposal block.
b. Appending proposal blocks to the DAG — Once a transaction has been deemed valid, harvesters create a proposal block and append it to the DAG. This ensures that transactions are recorded and organized efficiently within the network.
Harvesters access the DAG in parallel, informing the network of batches of pre-validated and executed transactions, and signaling imminent state transition.
Conflict Resolution and the Role of the Miner
Conflicts can arise when two or more proposal blocks contain the same transaction. To resolve these conflicts, the elected miner plays a crucial role. The miner runs a Proof of Claim election among the harvesters that proposed the conflicting blocks. The block proposed by the winning harvester is then used as the reference for the conflicting transaction in the convergence block. This process ensures that conflicts are resolved efficiently and fairly.
This consolidation process leads to a single convergence block which serves as the ordering reference for future blocks. Participants in the network, upon learning about a new, certified convergence block, can transition to the next state of the network, with all new transactions included.
MEV Game Theory: Why Harvesters Want to Minimize Conflicts
It’s in the best interest of harvesters to minimize conflicts in the Versatus protocol. This is because harvesters want to be rewarded with fees for the transactions included in their proposal blocks. If a conflict arises and a harvester loses the conflict resolution election, they lose both the fees and the block space associated with the transaction. This provides an incentive for harvesters to avoid proposing transactions that may lead to conflicts.
By minimizing conflicts, harvesters can increase their chances of earning rewards, while also contributing to the overall efficiency and security of the Versatus network. This game-theoretic aspect of the protocol helps to ensure that participants act in the best interest of the network as a whole.
Conclusion
The Versatus protocol offers a unique approach to transaction validation by utilizing quorums, Dealerless Distributed Threshold Keys, and efficient techniques such as the Decentralized Task Scheduler and Left-Right Concurrency. With a clear incentive structure and roles for farmers, harvesters, and miners, the Versatus network achieves both security and efficiency in its transaction validation process.
Understanding the intricacies of the Versatus protocol can be challenging, but by breaking it down into its core components and examining the roles of each participant, we can gain a better appreciation for the innovation and potential that this technology offers. As the world continues to embrace decentralized networks, it’s important to stay informed about the latest advancements, like the Versatus protocol, that are shaping the future of blockchain technology.
About the Author
Andrew N. Smith, CAIA is the founder of Versatus Labs, Inc. and is a two-time founder, a strong motivator and leader. At his first startup, Andrew spent 5 years as the sole engineer and data scientist building out the full stack of Machine Learning and Deep Learning models. Andrew began working on Versatus , invented Proof of Claim and single-handedly built the Versatus prototype. Andrew’s vision for Versatus is to not only provide a better, more decentralized, secure and stable blockchain, cryptocurrency and smart contracts platform, but to also actively bridge the gap between the “real economy” and the “crypto economy” by providing developers the most flexible, extensible and composable smart contract platform in the world.
About Versatus Labs, Inc.
Versatus Labs is the development company building Versatus, an innovative blockchain protocol. Versatus is a fast, scalable Layer 1 built on top of a novel consensus mechanism called Proof of Claim. Versatus aims to make the developer experience frictionless by bringing ‘Build, Ship, Run’ DevOps to Web3 with its isolated, composable smart contracts containers, complete with a unikernel VM enabling developers to build in the language of their choice.
