FLETA is a blockchain service platform designed for decentralized applications (DApps) that solves the underlying scalability issue plaguing the blockchain space, which includes balancing the trio of scalability, speed, and decentralization.
One of FLETA’s major innovations to the blockchain space is the new and novel “Proof-of-Formulation” consensus algorithm that prevents forks by providing real-time confirmation of blocks and transactions. The Proof-of-Formulation consensus algorithm is currently undergoing the patent process through FLETA and the United States Patent office (Application Number: 62717695).
What is a consensus algorithm?
A consensus algorithm is a process used in computer science to reach agreement between multiple parties on a single data value throughout a distributed network. In blockchain networks, consensus is generally focused around block generation and confirmation.
Bitcoin and Ethereum both use the Proof-of-Work (PoW) consensus algorithm for block creation and confirmation of transactions in their respective blockchain networks.
PoW is impractical on a larger scale as it requires the entire network to come to majority consensus, which requires the use of excessive amounts of computing power and resources. As a result, Bitcoin is a slow system that manages only 7 transactions per second. Whereas Ethereum isn’t much better with only 15 to 25 transactions per second.
Proof-of-Formulation
In Proof-of-Formulation (PoF), mining and block generation is done differently compared with existing blockchain platforms. Formulators act as the block generators in the FLETA platform. Observers allow for real time confirmation of the blocks that are generated and prevent double spending.
Formulators
Formulators serve as the backbone of the PoF algorithm. Their ranking is based on a score which is calculated by the following formula:
Score: uint64(Phase) << 32 + uint64(binary.LittenEndian.Uint32(hash[:4]))
“Hash” serves as the hash value of the previous block, and “Phase” is a time-related value which shows how many times the RankTable has “turned” or gone through all of the formulators for block generation.
A new formulator in the system takes part in the RankTable with the Largest Phase+1 value.
The purpose of this is to make sure that each Formulator has at least one mining opportunity during each phase and so a different formulator sequence (or ranking) will be made for each phase of block generation. This prevents the potential for attacks and collusion by any malicious Formulators.
Observers
In simple terms, the main role of the Observers is to prevent DDoS attacks and to maintain the security of the entire blockchain network.
To maintain the systematic sequence and process of the system, each formulator will access the observer node in order to hide and mask their IPs. This prevents any form of targeted DDoS attacks on formulators.
Main features of observer nodes include:
- 5 observer nodes for each Formulator group, 3 of which are required to sign off on a generated block for it to be confirmed
- Real-time information being received about Formulator’s activities
- Node status and structure information is revealed to formulators and other users to increase the overall transparency of the network
Fork Prevention under PoF
#1 Discarding Flawed Blocks
If a block generator sends an incorrect block, recipient nodes will discard the block and prepare to receive a new one. In this case, the generator has 1 second to produce a normal block, otherwise the second-ranked formulator will begin creating a new block that will be propagated after 3 seconds if the initial formulator still does not propose a new block.
The observer node will acknowledge that the initial generator failed to create a block within 3 seconds and thus proceeds with the signing process of the block from the second-ranked formulator.
#2 Fork Prevention
As we have seen with the Ethereum and Ethereum Classic, as well as Bitcoin, Bitcoin Cash, and Bitcoin SV splits, forks can be quite detrimental to a blockchain network. The PoF algorithm recitifies this anomaly by making forks impossible to occur.
As 3 out of 5 observer nodes are required to sign off on a block in order to confirm it, forks are simply not possible because the first block with 3 out of 5 signatures will be confirmed as the next block in the chain.
Conclusion
FLETA’s Proof-of-Formulation consensus is not only fast, however it is highly secure as well due to the added layer of protection between Observer nodes, formulators, and the synchronization group.
Unlike PoW consensus, PoF does not require excessive computing resources or depend on the amount of ‘stake’ that someone possesses. Because of this, it reduces the competition about who mines and creates blocks as everyone gets a turn. PoF also has built-in mechanisms to prevent the possibility of any kind of forks. You can learn more about PoF in FLETA’s whitepaper, tech paper, and Alpha Testnet Report.
