Fast Blockchain Distributed Consensus

Fast Blockchain Distributed Consensus

This paper mainly describes a method for distributed control and asset transfer using blockchain technology, especially the interaction and asset locking and unlocking mechanism between Proof-of-Work and Proof-of-Stake blockchain networks. Here are the key points of the document:

Technical Background and Objectives:

Blockchain Technology: Blockchain is a consensus-based electronic distributed ledger used to record immutable transaction data.

Consensus Mechanism: The document specifically mentions two consensus mechanisms, Proof-of-Work (such as Bitcoin) and Proof-of-Stake, and explores their respective advantages and limitations.

Objective: Propose a method for secure and efficient asset transfer between two blockchain networks while maintaining the integrity and security of the blockchain.

Content:

Congress: Describes the concept of a consensus group, which is an open group of members who join by transferring digital assets (such as Bitcoin) to the consensus group address.

Threshold Signature Scheme: Using threshold signature technology, ensure that only members with enough private key shares can transfer assets controlled by the consensus group.

Two-way Peg: A mechanism is proposed to allow assets on the proof-of-work blockchain to be locked and the corresponding assets to be minted on the proof-of-stake blockchain, and vice versa, thereby achieving a two-way flow of assets between the two blockchains.

Implementation method:

Node operation: Details how nodes join the consensus group, generate private key shares, detect special transactions, mint new assets, and process asset redemptions.

Security measures: Includes the use of a trusted execution environment (TEE) to protect private key shares, detect malicious behavior, confiscate assets of malicious members, and prevent some attacks (such as "one-way betting attacks").

Sidechain application: As a broadcast channel, the sidechain is used to share information between consensus group members to coordinate actions and reach consensus.

Technical details:

Transaction verification: Transactions must be verified before they can be recorded on the blockchain, including steps such as executing locking and unlocking scripts.

Role of miners: In the proof-of-work blockchain, miners are responsible for solving complex computational problems to create new blocks; in the proof-of-stake blockchain, miners (or validators) obtain mining rights by staking assets.

Block confirmation: A transaction is considered confirmed when a sufficient number of blocks are added to the blockchain, making it virtually irreversible.

System architecture:

Blockchain network: It includes the main chain (proof of work blockchain) and the side chain (proof of stake blockchain), which interact through a consensus group.

Node composition: The blockchain network consists of multiple nodes, including mining nodes and verification nodes, which jointly maintain the global ledger and perform transaction verification.

Application scenarios:

Asset transfer: Allow users to securely transfer digital assets between different blockchain networks.

Distributed computing: Utilize the power of consensus groups to achieve distributed computing and algorithm execution, thereby reducing the computing burden of a single node.

Smart contract: Add more complex smart contract functions to the main chain through the Turing-complete scripting language on the side chain.

The document proposes an innovative blockchain technology solution that aims to solve the challenges of existing blockchain technology in asset transfer, distributed control, and cross-chain interaction. By introducing consensus groups, threshold signature schemes, and two-way anchoring mechanisms, it provides new possibilities for the expansion and interoperability of blockchain applications.