NELO PoS Consensus
NSC randomizes the selection of nodes from small-scale candidate nodes to participate in the BFT consensus and makes a trade-off.
Any $NELO holder can participate in the verification node (alternative node candidate) by staking and other $NELO holders continue to vote through delegation, thereby maintaining a small-scale dynamic verification node candidate (alternative node) list, and in this candidate list, a number of verification nodes are randomly selected for block generation and verification through VRF and probability distribution.
The characteristics of VRF ensure the randomness of the selection, thereby reducing the probability of verification nodes being attacked, and at the same time, increasing the degree of decentralization.
The probability distribution allows candidate nodes with high equity to have a higher probability of being selected, thereby incentivizing candidate nodes to find ways to increase their equity.
As the number of staked $NELO in the entire system increases, the security of the entire system will be higher. In this way, the selection range of verification nodes is reduced, thereby ensuring the efficiency of consensus, and effectively avoiding the problem of excessive centralization
Separation of Stake-holders and Validators
$NELO holders who want to participate in the production of NSC blocks staking to lock a certain amount of $NELO into the staking contract and become Nominated candidates.
The candidate node candidates ranked top 201 are called candidate nodes. The candidate nodes participate in the verification node election of each consensus cycle and can obtain the distribution reward for the additional issuance of $NELO in the settlement cycle.
The system randomly selects 43 (normal state) nodes from 201 candidate nodes through the VRF random function as consensus cycle verification nodes.
Proposers A consensus cycle produces 430 blocks (43 verification nodes each produce 10 blocks in a row), 43 verification nodes take turns to become proposers, and the block generation time for each verification node is 20 seconds.
Entrust your $NELO to $NELO holders of Nominated candidates. Verifiers cannot delegate to each other, nor can they delegate themselves.