What is the consensus mechanism of SKALE (SKL) currency?

SKALE's Bounded Byzantine Agreement (BBA) consensus mechanism ensures network security, data integrity, and transaction finality while enabling high transaction throughput and scalability for Ethereum applications.

Dec 10, 2024 at 11:43 pm

Understanding the Consensus Mechanism of SKALE (SKL) Currency

Introduction

SKALE (SKL) is a blockchain-based platform designed to enhance the scalability and performance of Ethereum applications. SKALE achieves this by utilizing an innovative consensus mechanism known as the Bounded Byzantine Agreement (BBA). This consensus mechanism ensures network security, data integrity, and transaction finality while enabling high transaction throughput and scalability.

Consensus Mechanism of SKALE (SKL) Currency

The consensus mechanism of SKALE currency operates in a distributed manner, where multiple participants known as validators collaborate to achieve agreement on the validity of transactions and the current state of the blockchain. Validators are responsible for verifying and validating transactions, proposing new blocks, and participating in the consensus process.

Steps Involved in the Consensus Mechanism

1. Transaction Validation: Transactions submitted to the SKALE network are first validated by validators to ensure that they are valid and conform to the protocol rules. Validators check the authenticity of transactions, verify signatures, and ensure that transactions do not violate any blockchain constraints.
2. Block Proposal: Once transactions are validated, validators compete to propose the next block to the blockchain. They gather validated transactions and create a new block containing these transactions. A validator is randomly selected to propose the next block based on a weighted lottery system that considers factors such as their reputation and contribution to the network.
3. Block Verification: The proposed block is broadcast to all validators in the network for verification. Validators examine the block to ensure that it contains valid transactions, has a correct structure, and follows the consensus rules. If a validator detects any irregularities or inconsistencies, they can reject the block.
4. Consensus Voting: After block verification, validators engage in a consensus voting process known as Bounded Byzantine Agreement (BBA). BBA is a fault-tolerant consensus algorithm that requires a predefined majority of validators (e.g., 66.67%) to agree on the validity of the block.
5. Block Finalization: If the majority of validators vote in favor of the proposed block, it is considered valid and added to the blockchain. Transactions within the block are considered finalized and immutable, providing security and data integrity.
6. Validator Selection: Validators are periodically selected and replaced based on their performance, reputation, and contribution to the network. The selection process helps maintain a high level of security and prevents malicious actors from gaining control of the consensus mechanism.

Advantages of SKALE's Consensus Mechanism

• Scalability: BBA enables high transaction throughput and scalability by leveraging a sharding architecture and parallel execution of transactions across multiple shards.
• Security: The distributed nature of the consensus mechanism and the requirement for a predefined majority to agree on each block provide robust security against malicious attacks and data tampering.
• Fault Tolerance: BBA is a fault-tolerant consensus algorithm that can tolerate a limited number of malicious or faulty validators without compromising the integrity of the blockchain.
• Energy Efficiency: Compared to proof-of-work consensus mechanisms, BBA consumes significantly less energy, making the SKALE network more environmentally friendly.