What is Proof of Unity?
Proof of Unity is the our new and revolutionary mechanism of consensus. Our consensus mechanism is created to change the paradigm of interaction between nodes, which will lead to to increase in speed, scalability, and decentralization.
The Proof-of-Union protocol works by selecting several stakeholders who compete to extract the hash with an artificial difficulty, which is more laborious to generate than Proof-of-Stake but much simpler than Proof-of-Work.
Transmission does not occur directly between all nodes in the network immediately with a block created by the winning node, but nodes will transmit individual transactions within a closed P2P group with at least 10 nodes randomly chosen by the protocol with each new block.
Once the transactions are received the node will verify that the transactions are correct with the protocol parameters, once verified the node will transmit the transaction to all members of the P2P group. After receiving the transaction, P2P nodes evaluate the right communication quality and issue an acknowledgement of receipt with a score based on its quality; the higher a value and number of confirmed transactions, the higher a node’s chance of becoming the closing node for the next block. Assuming the transaction is non-compliant or of poor quality or the node has attempted to force the assignment of the block closure. In such a case, the transmitting node will earn a negative score, penalizing it on the scale for subsequent closures Each node will start with a score; if the node’s score drops to zero, the node will be removed from the network, the node will be removed from the network due to its unreliability. If there is a low-quality transaction or the same does not comply with the protocol, it will be returned to the issuing node with a bad receipt and a low score. The node with the lowest score will not receive any reward and in the next round it will join the group, transmit its transactions but will not receive any rewards, in this we will incentivize nodes to do their best work.
All nodes in the group contribute to block validation and creation, but they cannot independently choose which blocks to include in the peer network and which nodes to work with; they must collaborate with those given to them. Network security improves over time as the quality of the nodes and the transactions improves, and they increase their longevity in the network.
From a security perspective, this protocol is critical because the independent peer system allows simultaneous review of all transactions in the network. Excluding non-compliant transactions, as in double transaction attacks, also prevents the creation of a critical element in the blockchain, the 51% factor. This is significant because the algorithm does not allow for probability calculation and the choice of nodes is predetermined, making it impossible to create a network with 51% nodes accepting non-compliant transactions.