Consensus Algorithm

The objective of all the blockchain protocols is to replicate a blockchain and its associated state across the participating nodes. To achieve such an agreement, each blockchain protocol deploys a consensus algorithm.

The public Aergo network uses Delegated Proof of Stake (DPoS) for blockchain replication.

BP Election

In DPoS, blocks are generated only by a limited number of nodes called Block Producers (BPs). BPs are elected via voting, where the voting power is weighted by staked tokens.

BPs are re-elected round by round (blocks per round = the total number of the BPs). In each round, time is split into slots and each slot is assigned to one of the elected BPs. Only the permitted BP can produce a block in a time slot.

Staking & Voting

Staking means locking up one’s tokens for a minimum period of time. Any user wanting to vote must stake his tokens since the voting power is weighted by a staked tokens as remarked above.

Voting is performed via a transaction. The voting results does not come into effect, immediately. The current BPs are elected based on the voting result gathered at the block number: (<current block number> / <the total number of BPs> - 1) * <the total number of BPs>.

In other words, the voting results gathered in the past (approximately 1 round before) are used for stability (recent blocks may be roll-backed via a reorganization).

Last Irreversible Block (LIB)

In some blockchain protocols, a blockchain may branch into two or more, which is so called fork. Later, only one of them is chosen as the main branch via a set of rules defined by the blockchain protocol. Such a blockchain reorganization limits each block’s finality and, in turn, transaction’s finality. For example, a transaction, included in a block at one time, can be later rejected into the mempool.

DPoS also allows blockchain fork. However a block becomes a last irreversible block (LIB) when it is (double time) confirmed by a majority (2/3+) of BPs. Once a block is determined as a LIB, it is not rollbacked so that it has finality.