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Technical Overview of DOMINO Network (XDO)

MARCH23, 2021

When the power consumption of BTC mining exceeds that in Norway, when BTC is being cracking down by governments around the world due to environmental issues, do we need to make changes?

When FIL is a so-called decentralized storage hard disk filled with junk files, when XCH degenerates into a hardware competition and there are all kinds of POS projects everywhere, do we dare to make changes?

When POW, POS, and POC are driven by capital and desire, and gradually moving away from the original intention of decentralization, are we able to make changes?

Looking into the current mainstream encrypted digital currencies, BTC mining is not environmentally friendly and has been hit by many countries; the mining situation of ETH after being converted to POS is still unknown; FIL mining cannot temporarily solve the problems of staking cost and effective data; the threshold of Chia network is too low, which results in unfair monopoly. The mining industry is at an impasse, and it seems that there is no successor.

In other words, a more environmentally friendly, intelligent and fair decentralized network ecosystem should came into being in blockchain mining industry. Under the collision of geek and punk thinking, several unknown programmers and miners came up of an arrogant idea, which is to overthrow and rebuild the whole world of hardware mining.

They named it – DOMINO. Domino network (Token: XDO) means a domino effect in blockchain world.

Technical Overview

1 Proof-of-Balance – Original consensus mechanism

The Domino team combined the advantages of PoW and PoS, and proposed a new PoB (Proof of Balance) consensus mechanism. The Domino network uses its own technology, based on economic models and traditional PoW mechanisms to realize a fair coin production method that automatically adjusts the difficulty of mining and gradually halves block rewards, and combined with the consensus mechanism of PoS to reduce energy consumption requirements, avoid the paradox of over-centralization of computing power, and finally form a balance between workload and capital, giants and retail investors, interests and contributions, this is the PoB consensus mechanism.

Mining in the Domino network is not mandatory to stake XDO token. In order to avoid excessive centralization caused by the monopoly of resources and funds, the mining mechanism of the Domino network encourages small and medium miners to contribute to the computing power of the entire network. They do not need to stake or excessive stake to achieve mining income, when the computing power of a single miner’s account reaches a certain threshold, there will be a staking requirement, and it is the linear weighted staking. That is to say, the higher the computing power of a single miner, the more XDO coins need to be staked if they want to dig out matching profits. Under this mechanism, large users need extremely high costs to monopolize computing power, which will damage the interests of small and medium miners and endanger the security of the Domino network. They cannot over-occupy network resources based on equipment resources or huge funds. Small and medium miners can join the powerful Domino network with a low or even zero threshold, contributing to a more decentralized and fairer blockchain network and gaining benefits.

2 Domino network block producing system

At present, many projects have shortcomings in the block producing mechanism, which has lots of hidden dangers. In this regard, Domino has designed and optimized the block producing detection mechanism. In the Domino network, all plot files that have passed the preliminary screening will enter the candidate list of producing blocks, and the program responsible for producing blocks will check the plot files in the candidate list in details. The Domino system will not only check whether it is online, whether it has a timely response and can pass the proof-of-work detection, but also check whether there is cheating (such as mining in different pools at the same time) and the staking coins of the corresponding miners.The block producing program will automatically eliminate plots that do not meet the above checks, so as to ensure the high-speed operation of the Domino network and eliminate unnecessary hidden dangers.

3 Zero-knowledge proof and Privacy

In the field of blockchain, the difficulty of anonymity lies in how to correctly verify the accuracy of user information without disclosing the content of user information and prevent malicious attacks. Among the various encryption schemes currently providing privacy for the blockchain, the zero-knowledge proof algorithm represented by ZK-SNARK (Zero Knowledge-Succinct Non-interactive Argument of Knowledge) and ZK-STARK (Zero Knowledge-Scalable Transparent Argument of Knowledge) is gradually being valued and accepted by many projects and professionals. The biggest advantage of the zero-knowledge proof algorithm is that it provides a simplified unforgeable password proof, which allows one user to prove the authenticity of his statement to another user without revealing any information beyond the validity of the statement. After careful consideration and voting by community startup members, Domino decided to adopt ZK-STARK with stronger scalability and security to ensure the anonymity and security of the Domino network.

4 System Architecture

After the frequency of on-chain transactions has risen to a certain level, a series of problems such as congestion and high gas in the performance of public chains such as Ethereum have been revealed. To this end, the Domino system will adopt a layered design concept to solve the above-mentioned pain points. The hierarchical logic is to complete different operations in different layers. The layers interact through interfaces, and each layer itself is also one or more blockchains. This can greatly improve the overall TPS capability, and by distinguishing the functions of each layer, the computing power and the processing efficiency and capabilities of the program can be expanded, and the corresponding cost (expense) can be reduced. In addition, after the layers are isolated, the security can be further improved. Even if there is a problem in the upper layer, it will not affect the security of the next layer.

5 NFT module

In terms of NFT, Domino creatively proposed the concept of NFT development module, which aims to lower the threshold for users to generate and use NFT. The NFT development module program can use smart contracts to parameterize any NFT, which means that even if you are completely unfamiliar with the computer programming code and the NFT production process, you can design and fill in the NFT parameters in the template according to your own preferences and needs, and then generate NFT within one-click.


In a brutal system with internal connections like the blockchain, a small initial energy may cause a series of chain reactions just as the Domino effect. Perhaps its small effort can only cause unnoticeable gradual changes, but these small changes may trigger an earth-shaking evolution.

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