What is the consensus mechanism used by Mina Protocol?

The consensus mechanism used by Mina Protocol is called “Proof-of-Stake with Verifiable Delay Functions” (PoS-VDF).

This consensus mechanism is based on a cryptographic primitive called a verifiable delay function (VDF). A VDF is a function that takes a certain amount of time to compute, but can be verified quickly. In the Mina Protocol, the VDF is used to create a randomness beacon that produces random numbers.

These random numbers are used to select the nodes that will participate in the consensus process. The nodes selected are called “stakers” and they are responsible for validating transactions and producing new blocks. The stakers are incentivized to act honestly by receiving rewards for their work.

The rewards come from transaction fees and newly minted coins. In order to receive rewards, stakers must stake their coins in order to prove their commitment to the network. If they act dishonestly, they risk losing their stake.

The PoS-VDF consensus mechanism provides several advantages over other consensus mechanisms such as Proof-of-Work (PoW). It is more energy efficient since it does not require large amounts of computing power like PoW does. It also provides better security since it is more difficult for malicious actors to manipulate the network or attack it with a 51% attack.

Finally, it is faster since it does not require miners to compete against each other in order to produce new blocks.