3.4.4 Arbitrator Security Scheme
Arbitrators play a critical role in maintaining data integrity and network security within DGT (Distributed Governance Technology). They act as the second level of consensus and provide protection against distributed attacks on different clusters and network segments. There are two possible implementations for arbitrators:
Consortium-Protected Arbitrators:
In this implementation, arbitrators operate within a protected area, and their correctness is maintained by the consortium.
While this approach reduces decentralization, it enables the system to function independently from economic considerations.
POS-Based Arbitrators in the MAINNET Network:
The presence of a public segment and the introduction of an internal token in the DEC economy create a demand for an alternative mechanism to manage arbitrators.
POS (Proof-of-Stake) implementation, like the well-known PPOS approach, is used in the MAINNET network to manage arbitrators.
PoS mechanism for arbitrators in DGT ensures a secure and efficient consensus process, with block validation and decision-making power distributed among network participants based on their stake. This approach promotes decentralization, incentivizes active participation, and enhances the overall security and reliability of the network. Implementation of POS-based management of arbitrators in DGT:
Arbitrator Selection:
The selection process involves choosing a subset of nodes from the network to serve as arbitrators.
Arbitrators are selected based on their stake in the network, which is determined by the number of tokens they hold or the amount they have staked.
Token Staking:
Arbitrators are required to stake a certain amount of tokens as collateral to participate in the consensus process.
Staking tokens demonstrates their commitment and aligns their incentives with the network's success.
Block Validation:
Arbitrators take turns proposing and validating blocks in the network.
The probability of being chosen as a block proposer is directly proportional to the amount of tokens staked.
Consensus Decision:
When a block is proposed, the arbitrators participate in a consensus protocol to validate and agree on its inclusion in the blockchain.
The consensus protocol may involve voting, signing, or other mechanisms to reach agreement.
Rewards and Penalties:
Arbitrators who actively participate and contribute to the consensus process are rewarded with incentives.
Rewards can be in the form of additional tokens, transaction fees, or other benefits.
On the other hand, arbitrators who act maliciously or fail to fulfill their responsibilities may face penalties, such as losing a portion of their staked tokens.
Security and Sybil Resistance:
PoS provides security against attacks by requiring potential attackers to hold a significant number of tokens, making it economically unfeasible to compromise the network.
The stake-based selection process also adds a level of sybil resistance, as it limits the influence of individual nodes and prevents them from gaining disproportionate control over the consensus process.
The PoS algorithm grants decision-making power to the arbitrators based on their stake in the network.
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