What is the consensus mechanism of Shieldeum (SDM) currency?

Shieldeum's Consensus of Veiled Delegates (CVD) secures the network efficiently by combining elements of Proof-of-Stake and Delegated Proof-of-Stake, promoting decentralization.

Dec 11, 2024 at 02:58 pm

Understanding Shieldeum's (SDM) Consensus Mechanism

Introduction

Shieldeum (SDM) is a privacy-focused blockchain network that aims to provide secure and anonymous transactions. At its core, Shieldeum utilizes a unique consensus mechanism to secure its network and maintain the integrity of its transactions. This article delves into the specifics of Shieldeum's consensus mechanism, explaining how it operates and how it contributes to the security and efficiency of the network.

Shieldeum's Consensus Mechanism

Shieldeum employs a custom consensus mechanism known as the Consensus of Veiled Delegates (CVD). CVD is a hybrid consensus mechanism that combines elements of Proof-of-Stake (PoS) and Delegated Proof-of-Stake (DPoS) to provide a robust and secure network.

Steps Involved in Shieldeum's Consensus Mechanism

1. Election of Delegates:

   • Shieldeum utilizes a DPoS mechanism to elect a set of delegates responsible for validating transactions and securing the network.
   • Holders of SDM can stake their tokens to vote for delegates, with the top 21 candidates becoming the active delegates.
   • Delegates are responsible for proposing and validating blocks, ensuring the integrity of the blockchain.

2. Block Proposal and Validation:

   • The active delegates take turns proposing new blocks to the network.
   • Each proposed block contains a set of validated transactions and other relevant data.
   • Other delegates verify the validity of the proposed block, ensuring that it adheres to the protocol rules.

3. Block Finalization:

   • Once a block is validated by a majority of the delegates, it is considered "finalized" and added to the blockchain.
   • Finalized blocks cannot be altered or reversed, providing immutability to the transaction history.

4. Rewards and Penalties:

   • Delegates are rewarded with SDM tokens for proposing and validating blocks, incentivizing them to participate in the consensus process.
   • Delegates who fail to uphold their duties or engage in malicious behavior may be penalized and lose their staked tokens.

Benefits of Shieldeum's Consensus Mechanism

• Security: The CVD consensus mechanism ensures the integrity of the Shieldeum network by utilizing PoS and DPoS elements.
• Efficiency: By relying on a limited set of elected delegates, Shieldeum achieves faster block confirmation times without compromising security.
• Decentralization: While the delegates play a crucial role in validating transactions, the voting system ensures that power is distributed among token holders.

Comparison to Other Consensus Mechanisms

Shieldeum's Consensus of Veiled Delegates offers advantages compared to other consensus mechanisms:

• Compared to Proof-of-Work (PoW): CVD is more energy-efficient and scalable, reducing the computational burden and environmental impact.
• Compared to Pure DPoS: CVD incorporates PoS elements to mitigate the potential for centralization and delegate cartels.

Conclusion

Shieldeum's Consensus of Veiled Delegates (CVD) is a well-crafted consensus mechanism that ensures the security, efficiency, and decentralization of the network. By combining PoS and DPoS elements, Shieldeum has created a robust and reliable consensus mechanism that supports the privacy-focused nature of its blockchain.