JUN 17, 2021
Bitcoin-like blockchains use a proof-of-work (PoW) mechanism, where security holds if the majority of the computing power is under the control of honest players. However, this assumption has been seriously challenged recently, and Bitcoin-like systems fail if this assumption is violated. In this work Silicoin propose a new blockchain structure that combines PoW and proof-of-stake (PoS) mechanisms. Our analysis shows that the chain is secure as long as the honest players control a majority of the collective resources (which consist of both computing power and stake). In particular, even if the adversary controls more than 50% of the computing power, security still holds if the honest parties hold sufficiently high stake in the system. As an added contribution, our protocol also remains secure against adaptive adversaries.
Chia network is one of the most popular blockchain programs recently. Chia Network is building a blockchain platform based on Proofs of Space and Time. But what exactly is Proofs of Space and Time? It is a new type of PoW in many experts’ opinion. Then after thoroughly studying the code of Chia, Silicoin’s technical team came to a conclusion: Chia is very suitable to transform into PoW+PoS.
The Silicoin network bases 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. The Silicoin team called it Proof of Balance (PoB) consensus mechanism.
In this way, the advantages of resource-based and token-based consensus mechanisms are combined to ensure that the attacker must have dual advantages in resources and funds from the security of the consensus. From the fairness of the mechanism, everyone has the opportunity to participate in the Silicoin network.
Mining in the Silicoin network is not mandatory to stake SIT. In order to avoid excessive centralization caused by the monopoly of resources and funds, the mining mechanism of the Silicoin 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 SIT needs to be staked if they want to dig out matching profits.
Let’s take an example. The total netspace is 2000 PiB but Bob get control 1200 PiB of them. It means Bob is available to change any information on the chain. However, this will not happen in network of Silicoin.
Why? Because bob need to staking hugh amount SIT for 1200 PiB in this case. If 1 PiB need to stake 10 SITs and 2 PiB is 30 SITs instead of 20 coins. Therefore, 1200 PiB requires staking a very huge amount of SIT. Maybe the requirement is even over the total circulating amounts of SIT so that the hackers or monopolists is impossible to complete their plan to attack or control this chain.
Under this mechanism, big miners need extremely high costs to monopolize computing power, which will damage the interests of small and medium miners and endanger the security of the Silicoin network. They cannot over-occupy network resources based on equipment resources or huge funds. Small and medium miners can join the powerful Silicoin network with a low or even zero threshold, contributing to a more decentralized and fairer blockchain network and gaining benefits.