Technical Understanding of Core DAO
We will explore the Satoshi Plus consensus mechanism, which integrates Delegated Proof of Work (DPoW) and Delegated Proof of Stake (DPoS) to leverage both security and governance. This discussion will cover how DPoW allows Bitcoin miners to contribute to the Core network's security without altering their mining setup, and how DPoS enables token holders to participate in network governance through validator elections.
Satoshi Plus Consensus Mechanism
Source: Documentation
The Satoshi Plus consensus mechanism is a hallmark innovation of Core DAO, blending the strengths of two distinct consensus models: Delegated Proof of Work (DPoW) and Delegated Proof of Stake (DPoS). This hybrid approach is crafted to leverage the security inherent in Bitcoin’s mining process (DPoW) while incorporating the governance and efficiency of DPoS, commonly associated with networks like EOS and Tezos.
Delegated Proof of Work (DPoW)
DPoW capitalizes on the existing infrastructure and security of Bitcoin miners by allowing them to “delegate” their hash power to the Core network. This mechanism doesn’t require miners to switch their operations from Bitcoin to Core; instead, it reutilizes the hash power already being expended on Bitcoin mining to secure the Core network. This creates a symbiotic relationship where Bitcoin miners can earn additional rewards without compromising the security of the Bitcoin network.
Delegated Proof of Stake (DPoS)
DPoS introduces a layer of democratic governance into the network. In Core DAO’s model, token holders can stake their CORE tokens to elect validators, who are responsible for maintaining the network’s integrity and performance. This model not only speeds up transaction processing times compared to traditional Proof of Work systems but also reduces energy consumption, addressing one of the major criticisms of traditional mining operations.
Validators & Validator Election
Validators are central to Core Chain’s operation, producing blocks and validating transactions. Their selection is based on a hybrid score calculated from Delegated Proof of Work (DPoW) contributions by Bitcoin miners, Delegated Proof of Stake (DPoS) by CORE holders, and Bitcoin staking contributions. Every 200 blocks (approximately 10 minutes), the validator set is updated. The top 21 validators by hybrid score are chosen to continue as the active validators for the next set.
Validator Roles
Validators play a critical role in the Core network. They are not only responsible for creating new blocks and processing transactions but also for participating in the governance of the network. The election of validators is a dynamic process influenced by the staking of CORE tokens. Validators with higher stakes of delegated tokens have a better chance of being elected, promoting a meritocratic system where the most supported nodes govern the network.
This dual-role of validators in both securing the network and in governance embodies the decentralized ethos of blockchain technology, ensuring that no single entity can control the network. Validator performance and behavior are constantly monitored, with penalties for malicious actions or failures to maintain network standards.
The Satoshi Plus consensus mechanism and the associated security and validator frameworks of Core DAO represent a sophisticated blend of technology, economics, and governance. This innovative approach not only ensures high levels of security and network performance but also aligns with the broader goal of decentralized and democratic management of blockchain networks.
Role of Participants
Validators are responsible for creating blocks and validating transactions. To become a validator, one must register and lock up CORE tokens as a security deposit. On the other hand, relayers transmit Bitcoin block headers to the Core network, enabling the DPoW component of the Satoshi Plus mechanism. Relayers also register and lock up CORE tokens. Verifiers are tasked with ensuring network integrity by reporting malicious behaviors such as double signing or downtime. Successful verifications leading to slashing or jailing of validators result in rewards for verifiers. Both CORE and Bitcoin holders can stake their tokens to support validators, influencing the validator election through their staked tokens’ contribution to the validators’ hybrid scores.
Validator Rewards and Incentive Structures
Validators earn rewards both from new CORE tokens minted and transaction fees collected. These rewards are distributed based on their performance and stake, incentivizing validators to remain honest and efficient. Rewards are shared with those who delegated their hash power or tokens to validators. The distribution is proportional to the amount of resources each delegator contributes compared to the total staked and hashed by the validator.
Security Measures
Validators failing to act according to protocol (e.g., missing blocks, malicious activities) face slashing of their stakes and rewards, or jailing which temporarily removes them from the validator set. To prevent long-range attacks, Core Chain employs checkpointing, permanently recording the state of the blockchain at regular intervals, thus securing the history and integrity of the chain.
Core DAO’s security framework is robust, incorporating multiple layers of security checks and balances. The integration of DPoW and DPoS minimizes the risk of centralization and the associated security vulnerabilities. Regular security audits and the implementation of cryptographic methods ensure that the network remains resistant to various types of cyber threats, including double-spending and 51% attacks.
Interaction with Bitcoin Network
Bitcoin miners’ can delegate the PoW generated from mining Bitcoin to the Core network by specifying this in the coinbase transaction. This re-utilizes the hash power without affecting their Bitcoin mining. Relayers play a critical role by ensuring that Bitcoin block headers are correctly and securely communicated to the Core network, enabling accurate DPoW calculations.
Technical Workflows
Block Production: Validators take turns in a round-robin fashion to produce blocks, ensuring a fair and efficient distribution of block production responsibilities.
Validator Election Process: At the end of each day, validators are re-elected based on their hybrid scores, recalculated to reflect their contributions and the delegations received over the past period.
Security Checks: Regular intervals (epochs) are set to check the validity and alignment of validators, excluding those who have been jailed or slashed from participating in the consensus process.
This architecture not only utilizes the inherent security and decentralization of Bitcoin’s mining but also enhances the scalability and functionality of blockchain through advanced smart contract capabilities, making Core DAO an innovative player in the blockchain ecosystem.
Bài học 1:Introduction to Core DAO
Bài học 2:Core Project and Token Mechanics
Bài học 3:Technical Understanding of Core DAO
Bài học 4:The Core Ecosystem
Bài học 5:Core DAO Mainnet and Testnet Resources
Bài học 6:Conclusion and Future Outlook
Technical Understanding of Core DAO
We will explore the Satoshi Plus consensus mechanism, which integrates Delegated Proof of Work (DPoW) and Delegated Proof of Stake (DPoS) to leverage both security and governance. This discussion will cover how DPoW allows Bitcoin miners to contribute to the Core network's security without altering their mining setup, and how DPoS enables token holders to participate in network governance through validator elections.
Satoshi Plus Consensus Mechanism
Source: Documentation
The Satoshi Plus consensus mechanism is a hallmark innovation of Core DAO, blending the strengths of two distinct consensus models: Delegated Proof of Work (DPoW) and Delegated Proof of Stake (DPoS). This hybrid approach is crafted to leverage the security inherent in Bitcoin’s mining process (DPoW) while incorporating the governance and efficiency of DPoS, commonly associated with networks like EOS and Tezos.
Delegated Proof of Work (DPoW)
DPoW capitalizes on the existing infrastructure and security of Bitcoin miners by allowing them to “delegate” their hash power to the Core network. This mechanism doesn’t require miners to switch their operations from Bitcoin to Core; instead, it reutilizes the hash power already being expended on Bitcoin mining to secure the Core network. This creates a symbiotic relationship where Bitcoin miners can earn additional rewards without compromising the security of the Bitcoin network.
Delegated Proof of Stake (DPoS)
DPoS introduces a layer of democratic governance into the network. In Core DAO’s model, token holders can stake their CORE tokens to elect validators, who are responsible for maintaining the network’s integrity and performance. This model not only speeds up transaction processing times compared to traditional Proof of Work systems but also reduces energy consumption, addressing one of the major criticisms of traditional mining operations.
Validators & Validator Election
Validators are central to Core Chain’s operation, producing blocks and validating transactions. Their selection is based on a hybrid score calculated from Delegated Proof of Work (DPoW) contributions by Bitcoin miners, Delegated Proof of Stake (DPoS) by CORE holders, and Bitcoin staking contributions. Every 200 blocks (approximately 10 minutes), the validator set is updated. The top 21 validators by hybrid score are chosen to continue as the active validators for the next set.
Validator Roles
Validators play a critical role in the Core network. They are not only responsible for creating new blocks and processing transactions but also for participating in the governance of the network. The election of validators is a dynamic process influenced by the staking of CORE tokens. Validators with higher stakes of delegated tokens have a better chance of being elected, promoting a meritocratic system where the most supported nodes govern the network.
This dual-role of validators in both securing the network and in governance embodies the decentralized ethos of blockchain technology, ensuring that no single entity can control the network. Validator performance and behavior are constantly monitored, with penalties for malicious actions or failures to maintain network standards.
The Satoshi Plus consensus mechanism and the associated security and validator frameworks of Core DAO represent a sophisticated blend of technology, economics, and governance. This innovative approach not only ensures high levels of security and network performance but also aligns with the broader goal of decentralized and democratic management of blockchain networks.
Role of Participants
Validators are responsible for creating blocks and validating transactions. To become a validator, one must register and lock up CORE tokens as a security deposit. On the other hand, relayers transmit Bitcoin block headers to the Core network, enabling the DPoW component of the Satoshi Plus mechanism. Relayers also register and lock up CORE tokens. Verifiers are tasked with ensuring network integrity by reporting malicious behaviors such as double signing or downtime. Successful verifications leading to slashing or jailing of validators result in rewards for verifiers. Both CORE and Bitcoin holders can stake their tokens to support validators, influencing the validator election through their staked tokens’ contribution to the validators’ hybrid scores.
Validator Rewards and Incentive Structures
Validators earn rewards both from new CORE tokens minted and transaction fees collected. These rewards are distributed based on their performance and stake, incentivizing validators to remain honest and efficient. Rewards are shared with those who delegated their hash power or tokens to validators. The distribution is proportional to the amount of resources each delegator contributes compared to the total staked and hashed by the validator.
Security Measures
Validators failing to act according to protocol (e.g., missing blocks, malicious activities) face slashing of their stakes and rewards, or jailing which temporarily removes them from the validator set. To prevent long-range attacks, Core Chain employs checkpointing, permanently recording the state of the blockchain at regular intervals, thus securing the history and integrity of the chain.
Core DAO’s security framework is robust, incorporating multiple layers of security checks and balances. The integration of DPoW and DPoS minimizes the risk of centralization and the associated security vulnerabilities. Regular security audits and the implementation of cryptographic methods ensure that the network remains resistant to various types of cyber threats, including double-spending and 51% attacks.
Interaction with Bitcoin Network
Bitcoin miners’ can delegate the PoW generated from mining Bitcoin to the Core network by specifying this in the coinbase transaction. This re-utilizes the hash power without affecting their Bitcoin mining. Relayers play a critical role by ensuring that Bitcoin block headers are correctly and securely communicated to the Core network, enabling accurate DPoW calculations.
Technical Workflows
Block Production: Validators take turns in a round-robin fashion to produce blocks, ensuring a fair and efficient distribution of block production responsibilities.
Validator Election Process: At the end of each day, validators are re-elected based on their hybrid scores, recalculated to reflect their contributions and the delegations received over the past period.
Security Checks: Regular intervals (epochs) are set to check the validity and alignment of validators, excluding those who have been jailed or slashed from participating in the consensus process.
This architecture not only utilizes the inherent security and decentralization of Bitcoin’s mining but also enhances the scalability and functionality of blockchain through advanced smart contract capabilities, making Core DAO an innovative player in the blockchain ecosystem.