L3 Consensus mechanism and the relevance of stacking in the token economy

Question 1

What does the consensus mechanism define?

Answer 1

The agreement

Question 2

What does the sybil mechanism define?

Answer 2

the rules

e. g.
- who is allowed to vote?
- how often can they vote?
- where do they have to vote?

Question 3

Which layers are used for anti sybil mechanisms

Answer 3

Data and network layer

Question 4

Layers in blockchain

Answer 4

Application
Contract (script)
Incentive
Consensus (PoW, PoS)
Network
Data (Chain Structure, Time Stamp, Hash Function, Merkle Tree)

Question 5

PoW advantages

Answer 5

• security, 51% of mining power needed to create malicious yet valid blocks
• tested for several years
• easy to implement

Question 6

PoW disadvantages

Answer 6

• high energy
• geographic advantages/disadvantages
• high entrance barriers (hardware investments; but mining pools)
• centralization through increased needed computation power
• scalability

Question 7

What can happen to a validator in PoS?

Answer 7

• if a validator acts maliciously, its’ stake can get slashed

Question 8

PoS what determines who gets to add the next block?

Answer 8

Size of stake

Question 9

Does PoW favor the rich?

Answer 9

Yes because resources don’t scale linearly

Question 10

what are nodes

Answer 10

The servers in a blockchain are called “nodes.” Nodes process transactions. Some nodes have the ability to add blocks of transactions to the chain, maintaining and growing the ledger.

Question 11

Rights in PoS

Answer 11

• right to add blocks
• right to validate transactions
• right to participate in governance

Question 12

Pros of PoS

Answer 12

• energy efficient
• accessible
• node decentralization
• incentive alignment
• scalability

Question 13

Cons of PoS

Answer 13

• complexity & novelty
• centralization
• initial coin distribution
• security
• validators need native currency of the network
• stake has to be locked

Question 14

Delegated Proof of Stake

Answer 14

• Bob has no infrastrucuture but owns PoS token and has a wallet key
• delegates his token to Alice
• Bob gets a share of reward and fees
• Alice validates transactions, composes and adds new blocks, receives block rewards and tx fees
• Alice == Staking facilitiy

Question 15

do token holders have to delegate their voting power and physically transfer assets?

Answer 15

No. No physical transfer is required