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Last Updated 2020-06-16 |
What is Egalitarian Proof of Service (EPoSe – A New Consensus Algorithm)?
QWC’s EPoSe is the first that introduces a consensus that recognizes all network contributors and has attributes to proportionate rewards based on their services as well as optimizing all levels of services to the latest regulatory and technology standards.
The conventional structure of Proof of Work (PoW) or Proof of Stake (PoS) allows individuals either in single or in a group to have the massive power over the blockchain’s consensus. This is called ‘centralization’. These types of consensus may seem appropriate in our free market world because Return-on-Investment (ROI) must be satisfied or foreseeable in order to bring more attention on board and invest time and money for management and equipment respectively.
The major service groups in QWC network are divided into developers, community managers, mining pool operators and public node operators.
For codebase and community development, a certain percentage of block rewards shall be reserved, currently set at 10% of block rewards. The activation height of this will be determined and stated in the configuration file of the blockchain. Upon activation, this information will be updated.
For miners in PoW scheme, mining pool wallets receive the block rewards initially and send out miners’ payments based on their contributions in finding the hash value. For solo miners, they receive coins in their wallet immediately. Nothing is changed in payment distribution.
What changes is the formula for determining block rewards for solo miners and mining pools. The concept of time is applied to block reward formula for their consistencies, or continued services. Sudden increase or decrease in hash rate will change the block rewards. More details can be found in the following section: Egalitarian Proof of Work (EPoW).
For node operators, we considered implementing PoS but this is also problematic because coins are emitted for circulation instead of banking them to run a particular service. In a sense, PoS is very meaningful if staking party operates an individual service based on staked amount of coins. Since the role of nodes will become more important as more coins are emitted, a new reward algorithm for node operators will be introduced based on concept of time.
The nodes that operate the required version of software and served a certain period with sufficient H/W specification and speed will be nominated to become uptime nodes. These nodes will form a quorum for validating blocks and making important decisions in protecting QWC blockchain. This decision process will be coded for their autonomous actions and a certain percentage of block rewards will be provided to these nodes. To avoid any types of centralization, a group of uptime nodes will be randomly selected for decision making process.
More details can be found in the following section: Egalitarian Proof of Service (EPoSe - QWC Original)