Our consensus mechanism, known as Proof-of-Work by Authority (PoWbA), addresses the challenges posed by traditional Proof-of-Work (PoW) while upholding the core principles of the Rails Network.
Goals and Metrics: Aligned with our design principles, the Rails Network's consensus mechanism aims to accomplish and sustain the following goals and metrics:
Average Block Time: Efficiency is paramount. With an average block time of 3-5 seconds, the Rails Network ensures rapid transaction processing, promoting a seamless user experience.
Finality of Transactions: Timely confirmation is crucial. Transactions within the Rails Network are designed to achieve finality within 1 minute, ensuring the certainty and reliability of each transaction.
Healthy Inflation Rate: To maintain economic stability, the Rails Network maintains a healthy inflation rate ranging from 1-3%. This ensures a sustainable ecosystem while incentivizing participants to contribute and support the network's operations.
Addressing PoW Challenges: Traditional PoW mechanisms pose challenges, including environmental impact, the risk of mining pool domination, and high energy consumption. The Rails Network's consensus mechanism addresses these concerns while offering seamless enhancements for the future.
Security, Balance, and Ease of Entry: By combining PoW and Authority, the Rails Network achieves a balance between security, decentralization, and ease of entry. Blocks are produced by a known and verified set of validators, enhancing security. Miners are discouraged from monopolizing consecutive blocks, maintaining a fair and balanced ecosystem. Moreover, anyone can contribute to validator pools and earn rewards, promoting ease of entry and inclusivity.
Proof-of-Work by Authority: Understanding the trilemma of blockchain properties, the Rails Network prioritizes scalability and security while operating as a private blockchain. This strategic choice allows Steam Exchange to focus on addressing scalability concerns without compromising the network's security.
The PoWbA consensus mechanism combines the advantages of PoW, such as proven security and easy implementation, while mitigating its shortcomings such as high energy consumption and specialized hardware requirements. This innovative approach ensures the Rails Network's efficiency, sustainability, and accessibility.