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Consensus Mechanism

Consensus is the foundational agreement mechanism that ensures all participants in the Conduct Protocol network agree on the correct history of blocks and prevents malicious history rewrites.

Overview​

In blockchain systems, consensus refers to the agreement on the "correct history of blocks" among network participants. This mechanism is crucial for:

  • Preventing double spending - Ensuring transactions can't be spent multiple times
  • Maintaining network integrity - Protecting against malicious actors
  • Establishing canonical state - Creating a single source of truth for the blockchain

Common Consensus Mechanisms​

Proof-of-Work (Bitcoin Model)​

Core Principle: More energy invested equals more correct blockchain history

How it works:

  • Block creation is determined by energy investment (computational work)
  • Miners compete to solve cryptographic puzzles
  • The longest chain with the most accumulated work is considered valid

Advantages:

  • High security due to collective energy investment
  • Battle-tested and proven secure (Bitcoin's 15+ year track record)
  • Truly decentralized with no initial stake requirements

Drawbacks:

  • Massive energy consumption
  • Scalability limitations
  • "Only really makes sense to have one Proof-of-Work blockchain: Bitcoin"

Proof-of-Stake​

Core Principle: Economic stake determines block creation rights

How it works:

  • Users collateralize funds as stake in the network
  • More staked funds provide more block creation opportunities
  • Validators risk losing their stake for malicious behavior

Advantages:

  • Significantly lower energy consumption
  • Faster transaction finality
  • Economic penalties for bad behavior

Challenges:

  • Lower security during early stages when currency value is low
  • Requires initial token distribution
  • "Nothing at stake" problem in some implementations

Conduct Protocol's Consensus Approach​

Conduct Protocol implements a unique Proof-of-Stake-like mechanism with innovative characteristics that address traditional PoS limitations.

Key Features​

Hybrid Staking Model:

  • Stake is derived from factors beyond just the native currency
  • Bitcoin transaction fees can influence staking weight
  • Voting power increases based on Bitcoin transaction history

Mobile-First Design:

  • Optimized for mobile device participation
  • Reduced computational requirements
  • Efficient synchronization for mobile nodes

Primary Motivations​

  1. Increase Economic Attack Cost

    • By incorporating Bitcoin transaction history into staking weight
    • Makes attacks more expensive by requiring real Bitcoin fees
    • Leverages Bitcoin's security model

  2. Enhance Bitcoin Fee Market Competition

    • Creates additional utility for Bitcoin transactions
    • Encourages more Bitcoin network usage
    • Bridges Bitcoin and Conduct Protocol ecosystems

Consensus Flow​

graph TD
    A[Stakers Submit Proposals] --> B[Weight Calculation]
    B --> C[Include Bitcoin Transaction History]
    C --> D[Leader Selection]
    D --> E[Block Production]
    E --> F[Network Validation]
    F --> G[Finalization]

Staking Weight Calculation​

The staking weight in Conduct Protocol considers:

  1. Native CNDT Tokens - Base staking amount
  2. Bitcoin Transaction Fees - Historical fee payments increase weight
  3. Network Participation - Active participation bonuses
  4. Time-based Factors - Stake duration and consistency

Security Properties​

Economic Security:

  • Attacks require significant CNDT stake AND Bitcoin transaction history
  • Multi-layered economic requirements increase attack cost

Mobile Optimization:

  • Consensus algorithm designed for intermittent connectivity
  • Efficient state synchronization for mobile devices

Bitcoin Integration:

  • Leverages Bitcoin's existing security infrastructure
  • Creates economic incentives aligned with Bitcoin network health

Consensus Parameters​

The Conduct Protocol consensus mechanism operates with specific parameters that can be adjusted through governance:

  • Block time: Target time between blocks
  • Finality time: Time required for transaction finalization
  • Minimum stake: Minimum CNDT required for validation
  • Bitcoin weight factor: Multiplier for Bitcoin transaction history influence

These parameters balance security, performance, and mobile device constraints to create an optimal blockchain experience.