How does the consensus mechanism work in XDC Network?
The consensus mechanism in XDC Network is based on a hybrid consensus model, which combines the best of both Proof-of-Work (PoW) and Proof-of-Stake (PoS) algorithms.
The PoW algorithm is used to secure the network and validate transactions. It requires miners to solve complex mathematical puzzles in order to create new blocks and add them to the blockchain. The miner who solves the puzzle first is rewarded with XDC tokens for their efforts.
The PoS algorithm is used to ensure that all nodes on the network are working together in a decentralized manner. It requires users to stake their XDC tokens in order to become validators on the network. These validators are then responsible for verifying transactions and creating new blocks, which are added to the blockchain.
In addition, XDC Network also uses a Byzantine Fault Tolerance (BFT) consensus algorithm, which helps ensure that all nodes on the network are working together in a decentralized manner. This algorithm also helps prevent malicious actors from taking control of the network by ensuring that all nodes agree on any changes made to the blockchain before they can be implemented. Overall, XDC Network’s hybrid consensus model ensures that all nodes on the network are working together in a secure and decentralized manner, while also rewarding miners and validators for their efforts with XDC tokens.
