eSync Network got a major upgrade!
The Proof-of-Stake (PoS) consensus mechanism is now live.
PoS Info Center
Find all info you need around the eSync Network’s upgrade to Proof-of-Stake (PoS).
What is Proof-of-Stake (PoS)?
The Proof-of-Stake (PoS) consensus mechanism is a method used in blockchain networks to achieve distributed consensus. The creator of a new block in a PoS-based blockchain is chosen in a deterministic way, depending on the amount, also defined as stake.
In PoS systems, blocks are said to be ‘forged’ or ‘minted’, not mined. Validators are chosen to create a new block based on their economic stake in the network, thus the more coins a validator holds, the more they can forge.
This method reduces the energy consumption (in comparison to PoW consensus mechanism), overall cost and increases the distribution of the network, making the blockchain more scalable, decentralized and sustainable.
Please also take a look at the PoS FAQ section to find out more.
Why PoS ?
Earlier eSync Network has relied upon the tried, tested and eCredits optimized Proof-of-Authority (PoA) consensus mechanism. With its utilization of predefined, trusted validators it has long provided the stability and security needed for the network to develop and prosper in its early stages.
While PoA has served well in the first stage, the need to push forward made the shift to Proof-of-Stake (PoS) inevitable. By the nature of its configuration, PoS offers more decentralization and security – and consequently, more trust – than PoA can provide. Further, blockchains (like ours) that utilize PoS are faster, cheaper, more scalable, making them increasingly attractive environments for developers to build their projects.
Best part: unlike other alternatives, PoS works with Ethereum – which is what the eSync Network is built upon – offering more decentralization scalability than ever before.
Please also take a look at the PoS FAQ section to find out more.
How does it work?
In a PoS system validators are chosen to create new blocks and confirm transactions based on the amount of cryptocurrency they hold and are willing to “stake” as collateral. The higher the stake, the greater one’s chance of being selected to validate transactions and forge new blocks.
The result is that validators are incentivized to be proactive, by ensuring new blocks are created, and to act honestly, to avoid losing their staked assets.
Ethereum puts it more bluntly “PoS is a way to prove that validators have put something of value into the network that can be destroyed if they act dishonestly. If they try to defraud the network, some or all of their staked ETH can be destroyed.”
Please also take a look at the PoS FAQ section to find out more.
NODE SETUP Documentation
If you want to learn how to setup a Validator Node check out the Technical Documentation.
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PoS FAQs
Frequently asked questions (FAQs) about the eSync Network PoS upgrade.
What is Proof-of-Stake (PoS)?
Answer: Proof-of-Stake (PoS) is a consensus mechanism where network participants validate new blocks based on the amount of cryptocurrency they hold and stake. Unlike Proof-of-Work (PoW), PoS systems do not require energy-intensive calculations but select validators based on their stake and other factors such as randomness.
Why is eSync transitioning from Proof-of-Authority to Proof-of-Stake?
Answer: We are transitioning from Proof-of-Authority (POA) to Proof-of-Stake (PoS) to increase the decentralization and security of our network. PoS allows us to encourage the participation of a larger number of users in the consensus process, making the network more resilient to attacks.
When will the transition to Proof-of-Stake take place?
Answer: The transition is planned for 16 July 2024. We will announce detailed information and a specific timeline through our communication channels in due course
Where can I get more information and updates about the transition?
Answer: More information and updates will be published on the esync.network Website and the eSync Network social media channels. We recommend regularly checking our announcements to stay informed.
How does the Proof-of-Stake mechanism work in general?
Answer: In a PoS system, validators (stakers) are selected based on the amount of tokens or coins they have staked and other factors such as randomness to validate new blocks. These validators confirm transactions and add them to the blockchain. In return, they receive rewards in the form of additional tokens or coins.
What happens to existing transactions and data after the transition?
Answer: All existing transactions and data of the eSync Network remain unchanged and secure. The transition only affects the consensus mechanism and does not alter historical data on the blockchain. All previous transactions and records remain fully intact.
How can I participate in Proof-of-Stake?
Answer: To participate in the eSync Network PoS, users need to stake a certain amount of eCredits (ECS). This stake signals their commitment and trustworthiness within the network. More details on participation, including the minimum staking requirements, will be provided in our guide.
Are there any risks or downsides to participating in PoS?
Answer: As with any investment, there are risks, including the potential loss of the stake in the event of misconduct or attacks on the network. Participants should be aware of the possible risks and only stake amounts they can afford to lose. Another risk is the slashing mechanism which penalizes validators for misbehaving, being offline or decreasing the eSync Network stability any other way. Such behaviour will be penalized and can lead to a loss of the staked funds.
How are rewards distributed in Proof-of-Stake?
Answer: Rewards in the eSync Network PoS system are distributed proportionally to each validator’s stake. Validators who successfully create new blocks and validate transactions receive rewards in the form of additional eCredits (ECS) corresponding to their stake.
Is Proof-of-Stake more secure than Proof-of-Authority?
Answer: PoS offers higher decentralization than PoA as anyone can participate in the consensus without any approval of the community. As a result, more participants are involved in the consensus process which further decentralizes the network. This can enhance network security as it becomes more difficult to control or manipulate a majority of stakers.
Do Validators Need to Act on the PoS upgrade?
Answer: No action is required from Validators at the moment!
We will shortly be providing more detailed information for Validators.
What happens if a validator in the PoS system fails or cheats?
Answer: In the PoS system, validators who cheat or violate the rules can lose their stake, a process known as “slashing”. These penalties ensure that validators behave correctly and protect the network.
Where can I find information about Validator Node Setup?
Answer: You can find additional information in the Node Setup Documentation.
