5irechain is introducing SPoS, a new consensus protocol. SPoS is a multifactor consensus protocol where a node is assigned weights based on Stake, Reliability, randomised voting, sustainability score (Environmental, Social & Governance) and previous nomination. We believe that SPoS provides certain advantages over its adversaries. These advantages are over and above the advantages that proof of stake(PoS) consensus mechanism provides over proof of work (PoW) consensus mechanism. Nodes getting the maximum weight will be selected for the assembly of the blocks for the next 12 hours when the process of selecting the next nodes will start again. Table 1 outlines the factors along with the corresponding weight they carry.
Table 1: Weight Factors
It is to be noted that we have made these weights flexible and we are developing our product in such a way that we can change these weights based on how balanced our algorithm is in the selection of nodes. We still believe that a node having higher stake should get the higher priority, but stake should not be the only criteria of selecting the node, because we believe that this discourages the participation of nodes with smaller stake or nodes, which cannot coerce other nodes to nominate them. We also want to reward the loyal nodes, which are always there and hold the stake for a longer period of time. Similarly, ESG compliance further rewards the nodes for being there for the benefit of the society as whole.
Following are the key features of the consensus mechanism.
- SPoS uses multifactor weights to select the nodes for the assembly of the block.
- Randomized voting carries 20% weights, which ensures that nodes having the lower stake can still be selected for the assembly of the block. This essentially helps us curtail the cartelization of the network where nodes can create a nexus among each other by nominating or delegating their stake to favourite nodes each time.
- Nodes are assigned the reliability score based on amount of time nodes have been online at the time of voting and the amount of time they have held the stake for. This incentivises participation in the network.
- The proposed consensus mechanism takes into account the sustainability score, which consists of environmental social and governance score organizations or individuals running the nodes.
- Probability of being selected as an assembler reduces by 2% each time a node is selected. This is not permanent and It resets each week.
At 5ire our aim is not to punish the nodes with a higher stake, but to provide a fair share of opportunity to the nodes with a lower stake in order to encourage more nodes to participate in the network. This is why stake still carries 50% weight.
5ire gives reliability score to nodes is equally based on:
- Age of node or the time node has been online during the last 14 terms (7 days).
- How long they have held the stake for.
e.g. if node1 has been online all the time during the last 14 terms and has held the same or higher amount of stake then node will get a 10/10 reliability score. Similarly, if node1 reduced its stake by 50%, but was still online all the time during the last 14 terms then its reliability score will be 7.5/10.