DAEX - Effectiveness and Efficiency of ASPoS Consensus

The development of various projects has been made possible through the invention of cryptocurrency and blockchain. These creations have boosted virtually all aspects of the ecosystem globally, from transactions to well being and most especially the adopters of cryptoworld.
The recent development of blockchain platforms, the consensus protocol now creates channels for adequate assurance that makes data being added to the public account is valid. This usefulness keeps the system from being derailed by double spending or constant forking. For example, Proof of Work (PoW) systems use a mining process to achieve consensus. On another hand, Proof of Stake (PoS) platforms depend on minting and staking. In fact, there are hundreds of people having their own advantages and disadvantages. DAEX is basically following the same trend by developing a new consensus protocol called the Accumulated Signatures for Proof of Stake (ASPoS). 
In my various publications my intention is to take a deep dive into the ASPoS consensus by discussing it under broad categories like:

1 # Rewards and Penalties 
2 # Consensus Process 
2 # Throughput 
3 # Security Measures

1 # Penalties 
The consensus mechanisms for various rewarding transaction verifications. While positive activities are generally permitted and discouraged, malicious acts attract stiff penalties.

On Proof of Work, get rewards for investing in the creation of new blocks. PoW systems naturally involved.

On Proof of Stake, however, the validators get rewards for verifying new blocks and their power depend on their individual stakes or tokens owned. In such an environment, when there is a fork, a validator receives a duplicate copy of his / her stake on the forked blockchain. With this, the validator from signing off is nothing prevents, claim double transaction fees as reward, and spend the coins twice. This is a description of the classic "nothing-stake" threat encountered on all PoS systems.

ASPoS solves this problem by designing a new system comprising five different types of rewards that encourage positive node activities and strictly forbid forking or double-spend. These are:

Rewards for block creation

Rewards for adding proof of penalization

Rewards for adding proof of revenue

Rewards adding proof of idleness

Rewards for participating in block validation.

These intricate carry system of incentives incentives for participating in block creation and rapid block validation, while idleness and double-spend are swiftly penalized.

# 2 The Consensus Process

Issues relating to consensus protocols involve mining or staking, and new block creation. For instance, PoS systems use staking to reach consensus and create new blocks. In fact, each consensus mechanism and its variants have intricate rules for reaching consensus and maintaining security on the network.

As far as new block creation on ASPoS is concerned, there are four different types of nodes involved:

-Regular nodes

-Validation nodes

-Quasi-creator nodes

- Creator nodes

The normal or regular nodes transform into validator nodes by paying and securing a certain deposit. After this, the validator nodes with the greatest activity levels are selected to become the quasi-creator nodes. Finally, the chosen quasi-creator nodes undergo a lottery process via a Verifiable Random Function (VRF) to determine the lucky one that will become the creator node. Subsequently, this creator node forms and then broadcasts a new block. This elaborate but effective process of Sybil, long-range, DDoS, and node bribery attacks. The randomness in the system also discourages malicious node activities, since the chance of any node being selected as the final node is not certain.

On ASPoS, the for convergence process during block creation is achieved by an intricate set of rules which eliminates malicious nodes from the system. This works by awarding staking power to each node is based on its deposit amount, activity level, and a Clearing Value Factor or CVF. Nodes with more contributions to the stand to directly gain more rewards system for participating in the consensus process. Therefore, ASPo has also been called a CVF-PoS consensus, because it promotes the optimal functioning of the system by encouraging nodes to maintain a high CVF.

# 3 Throughput

In blockchain, throughput has a lot to do with performance, speed, and scalability. All blockchain platforms always strive to achieve greater throughput and efficiency, no matter the consensus mechanism is adopted. There are two effective ways of boosting throughput on a blockchain network which are by sharding and by delegating some nodes to participate in consensus to free up other nodes as seen in DPoS systems.

Sharding in a distributed network is a process for partitioning a large database into smaller, faster, and simpler to manage parts. As seen on Ethereum, the sharding improves throughput by implementing consensus in parallel. In contrast, node delegation methods use a simple delegate system during the consensus process, just like in real elections. But, the arrangement is vulnerable to attacks from powerful delegates who may collude together to attack the entire system.

DAEX, on the other hand, adopts the highly efficient ASPoS and sub-chain sharding to handle throughput problems.

# 4 Security Measures

To start with, all PoS systems faces one critical issue called the nothing-at-stake problem. This arises from the fact that nodes in systems have nothing to lose by staking on both sides of a fork to get maximum rewards. Fortunately, ASPoS devised an ingenious technique of this threat. Unlike other PoS variants, the ASPoS rather compensates for nodes that participate in the block validation process.

However, the block having the lowest selection coefficient has the greatest chance of being recorded on the network. Nodes with malicious activities have no chance of being chosen. Also, the quick-acting validator nodes have greater rewards. By this, the security and smooth operation of the network is safeguarded.

Additional ways by which ASPoS guarantees security on DAEX include:

Double-spend problems are prevented by reporting of any node creating multiple new blocks as a dunkle node and making it to forfeit its deposit.

The VRF lottery function ensures the randomness of the new block creation process, thus eliminating DoS attacks and bribery nodes.

Long-range attacks are prevented by the system's limited stipulated time between consecutive new block creation.

Finally, isolation attacks are mitigated by using a system of node accumulated signatures.

In conclusion, ASPoS is a formulated consensus mechanism which complements DAEX's unique architecture with an efficient consensus process, greater efficiency and better security measures. Its clearing and settlement processes are safer, cheaper, more efficient, and better suited to DAEX than similar cross-chain technologies.

To learn more about this project, check out the links below: 
Website:  https://www.daex.io
Whitepaper:  https://www.daex.io/pdf/DAEX -NonTechnicalWhitepaper-V0.9.8c 
Technical Whitepaper .pdf :  https://www.daex.io/pdf/DAEX (EN) -TechnicalWhitepaper-V0.6.1.pdf 
Twitter:  https://twitter.com/DaexBlockchain
Telegram:  https: //www.t. me / DAEXOfficial_en

Author by: Naomikatarina

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