Proof of Engagement: A Flexible Blockchain Consensus Mechanism

Abstract

Consensus mechanism plays an important role in blockchain. At present, mainstream consensus mechanisms include proof of work (PoW), proof of stake (PoS), and delegated proof of stake (DPoS). PoW, as is widely used in virtual currency, results in significant energy consumption; PoS and DPoS are proposed to reduce energy waste caused by PoW, but their disadvantage is that they tend to create Matthew Effect (ME): “the rich get richer.” In order to balance the discourse power of new nodes and elder ones, this paper proposes a flexible consensus mechanism called proof of engagement (PoE), based on the activity and contribution of network nodes. We analyze the incentive compatibility of PoE from the perspective of mechanism design. In our simulation experiments, we tested the profit changes under PoW, PoS, and PoE. The results illustrate it is easier for new nodes to accumulate their profits under PoE than under PoW or PoS, so as to reduce the negative impacts of ME.

A survey on blockchain consensus mechanism: research overview, current advances and future directions

“…The rewards are earned rewards according to the holding time and amount of coins, corresponding to the stake nodes deposited in the PoS consensus mechanism (Xu et al , 2021b). The higher the stake, the higher the chance to validate the block and win the reward.…”