Stakenet (XSN) Blockchain Architecture Part 1
1. Blockchain architecture
Stakenet is a trustless PoS blockchain, which provides a truly decentralized, highly secured and profit driven inter chain meta network for cryptocurrencies. Stakenet is powered by its native coin XSN and is managed by its own masternodes.
A coin swap from POSW to XSN created the Stakenet blockchain. The new blockchain architecture is based on the Bitcoin.core and has been modified as needed by the new development team.
POSWallet was an online staking wallet serving up more than 100 of the most common PoS altcoins, along with block explorers and faucets for each coin. The initial market supply of POSW was capped at 250.000.000. The previous Team decided to reduce the final supply by burning coins from the developers address, so the initial supply was reduced to only 70.000.000 POSW with an interest rate of 1% per year. After poswallet.com breach the old team left POSW. In summer 2017 the X9 developers took over the development putting together a completely new team. They rebuilt the underlying blockchain architecture from scratch and have expanded their features and use cases, to finally wipe out all connections left to the former POSW blockchain. From that day on XSN was born and finally launched its completely new dedicated blockchain at March 1st 2018.
1.1.2 Bitcoin.core fork table
Stakenet (XSN) was created to build an ecosystem that allows easy and secure offline staking and cross chain communication. For this purpose, the basic characteristics of Bitcoin, Dash and Peercoin were assumed and in some cases slightly modified. XSN uses the same core as Bitcoin, an improved Dash masternode architecture and an adjusted coinage, like Peercoin for the validation of new created blocks, down to 24h.
1.2 XSN blockchain metrics
Stakenet is a cutting-edge utility blockchain and ecosystem created to provide a truly decentralized, highly secure and profit-driven interchain meta network for cryptocurrencies. This economy is backed by Stakenets own coin named XSN. It utilizes the X11 algorithm, has powerful masternodes providing the network services and is secured by a Trustless Proof of Stake (TPoS) consensus, resulting in the highest level of security among existing Proof of Stake networks.
The consensus in a decentralized digital currency is a fundamental factor for validating newly generated blocks and moving the blockchain forward. Expressing in a simple way, it’s a software component that the validator of a blockchain uses to vote on whether a story in the past is true or not. For this proof, Stakenet uses a Proof of Stake (PoS) consensus. In the PoS consensus the block generation is done with a special transaction, called coinstake. In this transaction the coin owner pays himself thereby consuming his coinage (up to 24h), while gaining the privilege of generation a block for the network.
The first input of the coinstake transaction is called kernel. Doing so, it must satisfy a specific hash target protocol, turning the generation of PoS blocks a stochastic process. The hash target that the coinstake transaction must satisfy is defined as a target per unit coin age that needs to be reached, before it’s subsequently consumed in the kernel. In contrast to Proof of Work solutions the hashing operation is done over a limited search space instead of an unlimited one. Therefore, the block generation time within the Stakenet is 60 seconds, while the difficulty retargeting is set to 40 minutes, to avoid such long adjustment periods, like in the Bitcoin blockchain. The daily chance for a staker, to find and validate a block within the Stakenet blockchain is:
Each information bit within a blockchain has undergone a process known as cryptographic hashing. For this purpose, Stakenet uses the X11 algorithm. This is a cryptographically algorithm which uses a chained combination of the following eleven hashing functions. All of these differ by their output size. The implementation defines for the output sizes 224, 256, 384 and 512 bits.
The enhanced complexity of chained hashing solutions, like the X11 algorithm, provides a higher level of security and longevity for store of value for digital currency compared to other single hash solutions, which all have one single point of failure. If someone breaks the single hash — the entire network is threatened till it hard forks to another cryptographic hash. This scenario is less critical for X11, because all eleven algorithms needs to be broken at the same time to threat the network.
While a staking node is defined as an active electronic device that is attached to the Stakenet network and responsible for validating the blockchain, a masternode is a full node in the network that provides several services. Each masternode within the Stakenet blockchain needs a collateral of 15.000 XSN, to avoid a wild growth of the nodes. Thanks to the masternodes, the Stakenet blockchain becomes an ecosystem in which no single entity can control the entire network. Masternodes, and their collateral requirements, empower the XSN blockchain to perform highly sensitive missions in a truly trustless way. By randomly selecting masternodes to solve a task, these nodes act like oracles, so not the entire network needs to get it done. We believe, that previous masternode networks are not even doing 1% of what is possible, so we will empower the Stakenet masternodes to become much more than just coin mixer, instant sender or governance provider. With the help of periodic masternode challenges our nodes will evolve step by step into more and more powerful nodes that provide high end services, such as hosting a decentralized exchange. Due the fact that the Stakenet blockchain uses its revolutionary Trustless Proof of Stake (TPoS) consensus, significantly more independent Stakers secure the network and many more masternodes can be online than with previous solutions. The daily chance for a masternode, to get rewarded from block rewards is:
Stakenet is a decentralized autonomous organization that is run through unbreakable rules encoded and maintained on our blockchain. Stakenet doesn’t have a centralized leader, instead we created a management mechanism that takes credit for the needs of all involved individuals. The Stakenet Self-Governance will ensure that every proposal made by the community is democratically legitimatized by itself. Stakenet masternode owners have voting rights — one masternode equals to one vote.
The treasury is a cryptographically sealed public address that holds money automatically allocated to it by the network. Exactly 10% of the block rewards go to the treasury. It’s used to fund any related XSN project such as further coin developments, marketing campaigns, bounties and other related use cases. No centralized entity owns or have access to the money in the treasury. To obtain funds from the treasury a proposal must be submitted and voted democratically by the masternodes. It’s effectively owned by no one and everyone at the same time.
The Stakenet initial supply is distributed by the swap from POSW to XSN. Therefore, 76.500.000 XSN were created within the genesis block. Right after the swap ended, 3.500.000 unswapped XSN coins were sent to the following burning address: XmPe9BHRsmZeThtYF34YYjdnrjmcAUn8bC.
184.108.40.206 Blockreward breakdown
The Stakenet blockchain was truly fair launched with empty block rewards for the first 10 days, the first 20.000 blocks, to avoid asymmetric gains and offering everyone a fair chance to swap their coins and set up staking nodes and masternodes. The PoS block rewards will be decreased step by step every 63.200 blocks, which is around 30 days, by 5 XSN each, down to 20 XSN.
PoS Phase 1 fair launch start date: 6th Mar. 2018
PoS Phase 01: [000.000–020.000] 00 XSN
PoS Phase 02: [020.001–063.200] 50 XSN
PoS Phase 03: [063.201–106.400] 45 XSN
PoS Phase 04: [106.401–149.600] 40 XSN
PoS Phase 05: [149.601–192.800] 35 XSN
PoS Phase 06: [192.801–236.000] 30 XSN
PoS Phase 07: [236.001–279.200] 25 XSN
PoS Phase 08: [279.201 — .infinity.] 20 XSN
PoS Phase 8 estimated start date: 20th Sep. 2018
Since the total block reward for XSN will stabilize at 20 XSN the supply is theoretically unlimited. Therefore, Stakenet burns every transaction fee within the network and is building businesses that provide more value to XSN. Either by burning the profits of those thus decreasing the supply of our coin or by sending this money to the Treasury to fund more projects, it’s ensured that all profits within the Stakenet ecosystem will end up benefiting XSN. This Proof of Burn mechanism fulfills the purpose of being the counterpart of the increasing supply.
220.127.116.11 Blockreward distribution
The Stakenet blockchain is powered by two types of nodes: Staking nodes and masternodes. We believe network security and network services are equally important to have a robust and powerful infrastructure, so we do not discriminate any of them for their work. That’s why the staker and masternodes are equally rewarded, each with 45% of the block rewards. This way we don’t incite false incentives and bring the balance out of tact. Finally, 10% of the blockrewards are sent to the Treasury to fund the further developments of Stakenet.
For the second part of the XSN blockchain architecture: click here.
Disclaimer: As with any crypto-currency, there is an inherent risk, while XSN Core team endeavors to implement to the best of their abilities, they make no representations to the future value of the XSN coin and individuals purchase it at their own risk.