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How is ZIGChain (ZIG) coin generated?

Through Proof-of-Verification consensus, ZIGChain generates new ZIG coins as rewards to validators who successfully verify and approve blocks, incentivizing network participation and maintaining blockchain integrity.

Dec 09, 2024 at 08:17 pm

How is ZIGChain (ZIG) Coin Generated?Introduction:

ZIGChain (ZIG) is a decentralized blockchain platform that uses a unique consensus mechanism called Proof-of-Verification (PoV) to generate new blocks and validate transactions. The PoV mechanism relies on a network of nodes that verify transactions and contribute to the security and integrity of the blockchain. This article provides a detailed explanation of how ZIG coins are generated through the PoV process.

Understanding Proof-of-Verification (PoV):
  • The PoV consensus mechanism involves a set of validators who are responsible for verifying and approving transactions.
  • Validators are randomly selected from the network based on their stake in ZIG tokens.
  • Validators must maintain a certain level of uptime and respond to verification requests within a specific time frame.
Steps in ZIG Coin Generation:1. Transaction Initiation:
  • When a user initiates a transaction on the ZIGChain network, it is broadcast to all the validators.
  • Transactions include details such as the sender, recipient, amount, and optional metadata.
2. Transaction Verification:
  • A group of randomly selected validators are assigned to verify the transaction.
  • Validators check for the validity of the transaction, including its authenticity, sufficient funds, and adherence to network rules.
3. Block Formation:
  • Once a transaction is verified by the majority of validators, it is added to a block along with other verified transactions.
  • Blocks also contain information such as the block height, timestamp, and cryptographic hash of the previous block.
4. Block Verification:
  • The newly formed block is sent to all the validators for verification.
  • Validators ensure that the block is valid, contains only verified transactions, and follows the protocol rules.
5. Block Approval:
  • If a block is approved by more than 66% of the validators, it is added to the blockchain.
  • The block is assigned a unique identifier, and its transactions become immutable and secure.
6. ZIG Coin Generation:
  • The validators who successfully verify and approve blocks are rewarded with ZIG coins.
  • The reward is proportional to the validator's stake in the network and the number of blocks they participate in verifying.
  • Newly generated ZIG coins are added to the circulating supply, incentivizing validators to continue participating in the network.
7. Network Security:
  • The PoV mechanism ensures the security and integrity of the ZIGChain network.
  • By requiring multiple validators to approve each block, it becomes challenging for malicious actors to tamper with transactions or double-spend coins.
  • Validators are also incentivized to maintain high levels of uptime and honesty to earn rewards and avoid penalties.
Conclusion:

The ZIGChain PoV consensus mechanism provides a reliable and secure method for generating new ZIG coins. By relying on a network of trustworthy validators, ZIGChain ensures the integrity of its blockchain, the validity of transactions, and the fair distribution of rewards to network participants. This process contributes to the stability and growth of the ZIGChain ecosystem.

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