PoS Consensus Algorithm for Financial Networks
Multi-project blockchain research group unveils the design for a new consensus algorithm for fast, energy efficient, and secure financial networks.
A team of blockchain researchers lead by Trinkler Software and Nimiq have revealed the design ofAlbatross, a new consensus protocol that will potentially allow for blockchain networks that are more secure, energy efficient, and higher-speed than ever before. The group states that Albatross will be a blockchain technology innovation nearly perfectly designed for large-scale decentralized financial networks.
Albatross was conceived from the technical need for a high security, high throughput, low latency, and low energy consumption consensus algorithm to run Katallassos, a new decentralized standard framework for derivatives and financial contracts. It is based off of the Proof-of-Stake (PoS), a consensus algorithm standard which has unique differences over Proof-of-Work (PoW) the incumbent technology used by Bitcoin, Ethereum, and others. Including:
- Drastically reduced energy consumption: there is no need to perform labor that is highly energy consuming to secure the blockchain;
- Reduced risk of centralization: specifically, economies of scale are less of an issue in PoS;
- The equivalent of 51% attacks being more expensive: misbehaving nodes permanently lose their stake, compared to reusable hardware in PoW.
“When we began to build Katallassos we found that the state of blockchain technology was a barrier for scale and speed of the decentralized system we planned to create,” said Reto Trinkler, Founder of Trinkler Software AG and Katallassos. “With these theoretical benchmarks that we would need to create a large scale decentralized financial network, we created Albatross. We’re very excited about taking the next steps and testing Albatross on larger scale.”
From a performance perspective, Albatross has the potential to achieve:
- Low latency;
- Up to 10k transactions per second (TPS) on-chain;
- Reduced amount of data required to bootstrap – Albatross will make it possible to hardcode a recent macro block into the light client software;
- Instant confirmation on transactions, taking only the time of a round-trip message between client and validators.
The algorithm will be tested over the coming months internally by the research group alongside new collaborators, with the potential for live deployment on the Katallassos and Nimiq blockchain networks later this year.
The project was spearheaded by Trinkler Software AG, headed by Bruno Franca and Reto Trinkler (Co-Founder of Melonport, Web3 Foundation, Forbes 30u30), alongside the Nimiq Foundation, with research from Marvin Wissfeld, Pascal Berrang, and Philipp von Styp-Rekowsky.