What is Core DAO Satoshi Plus Consensus?

The Core Blockchain Origin outlined how the history of Bitcoin and Ethereum has influenced Core's mission to scale Bitcoin's fire to new heights by utilizing many of Ethereum's superpowers. To accomplish this goal, Core needs a new consensus algorithm that can combine Bitcoin's decentralization and security with Ethereum's scalability and efficiency. Introducing Satoshi Plus consensus.

The three key features of a successful blockchain are security, scalability and decentralization. However, as blockchain technology has developed, it has become less decentralised. The reason for this is that all cryptocurrencies have to make a trade-off between security, scalability and decentralization.

Main Features of Satoshi Plus Consensus

The Core Satoshi Plus consensus balances the elements challenged by the blockchain trilemma by employing a state-of-the-art Validator election mechanism that combines the most critical elements of both the Bitcoin network's Proof of Work (PoW) and Delegated Proof of Stake (DPoS). On top of this, Core is also EVM compatible.

Proof of Work

The Satoshi Plus consensus algorithm begins with the Bitcoin Network. Rather than developing a completely new and independent Proof of Work algorithm, Satoshi Plus directly leverages Bitcoin's proven and preeminent PoW system. Specifically, Satoshi Plus’ PoW component includes Bitcoin miners in the election of Core's Validator Set by having Bitcoin miners directly delegate their hash power to their preferred Validators. This hash power is the energy expenditure that ensures two of the essential blockchain elements. First, it operates as the skin in the game necessary to secure a truthful ledger. Second, it preserves decentralization by encouraging participation from the most decentralized consensus network in the blockchain world.

Delegated Proof of Stake

The decentralized security of Bitcoin's PoW is complimented by Satoshi Plus' use of Ethereum's Proof of Stake consensus, which is scalable and energy-efficient. Instead of verifying transactions through a secure but energy-consuming process, PoS uses validators who have staked a large amount of the native token as collateral. This, however, presents a problem as the large staking requirements restrict small token holders from participating.

To try and create a more level playing field, Satoshi Plus uses Delegated Proof of Stake (DPoS), which gives all CORE holders voting power in electing the validator set by delegating their CORE holdings to eligible Validators. By allowing even small-stake CORE holders to participate in the validator election process, DPoS empowers the Core community and incentivizes the democratization of staked CORE. Thus, Satoshi Plus' DPoS is able to provide scalability on top of PoW's significant decentralization and security, while still carefully maintaining the decentralization of Validator Set voters and the security ensured by skin-in-the-game incentives.

Closing Thought

What makes Satoshi Plus special is the combination of PoW and DPoS, which are powerful consensus mechanisms individually. Satoshi Plus' Validator Election Mechanism selects Validators with the optimal blend of BTC hash power and staked CORE to comprise the Validator Set in order to combine the decentralized security of BTC-powered PoW and the scalability of DPoS. Satoshi Plus offers a high transaction rate and increased scalability without compromising security and decentralization by securely electing a lean Validator Set from a decentralized delegating/voting base.

The Proof of Work, Delegated Proof of Stake, and Validator Election Mechanism work together to create a system that is secure, scalable, and decentralized. Other network participants, such as Relayers and Verifiers, also play a role in strengthening security and scalability.