--- title: Blockstack Proof of Transfer Community Deck tags: Community Decks, PoX, Mining, Stacking description: View the slide with "Slide Mode". --- # 🔄Proof of Transfer: A novel consensus mechanism This is the community presentation for the recently proposed consensus mechanism, Proof of Transfer. slide: https://hackmd.io/@kf0897riSlaPvlj6tUW5hA/SkeL7ErD8#/ --- ## Blockstack History Years of deep distributed systems R&D for a solid foundation ``` • Founded by Princeton Computer Scientists • 2 scientists with Presidential Career Awards • 13,000+ research citations among whitepaper authors • Research published at USENIX ATC, DCCl • Nominated by Princeton for SIGCOMM dissertation award Board: Mongo DB (IPO), Twilio (IPO), Etsy (IPO) ``` --- ![](https://i.imgur.com/1wwO7Zg.png) --- ### From R&D to Production $70M+ raised from industry-leading investors. * 2017 - R&D and dev platform * 2018 - Launched Stacks v1 blockchain * 2019 - 360+ apps on the network + SEC-qualified offering * 2020 - Stacks 2.0 + further decentralization --- ![](https://i.imgur.com/9xaQHiI.png) --- ## PoX - Proof of Transfer Overview <style> code.blue { color: #337AB7 !important; } code.orange { color: #F7A004 !important; } </style> - <code class="orange">Bitcoin</code> as Digital Gold and reserve currency. - Creates New Use Case for Bitcoin - You only need to go from electricity to PoW currency only once. - Can use existing PoW cryptocurrency to secure new blockchains and mint units of new cryptocurrency --- - <code class="orange">Proof-of-transfer (PoX)</code> on the base cryptocurrency by miners. - <code class="orange">Bitcoin is the “king of PoW”</code> and further consolidation might happen. --- ![](https://i.imgur.com/bf9oiLh.png) --- ### PoX Mining | Name | Acronym | Miner action to mint new cryptocurrency | | ---- | ----- | -------- | | Proof-of-work | PoW | Consume electricity and computation to mint units of a new cryptocurrency.| | Proof-of-stake | PoS |Dedicate economic stake in a base cryptocurrency to mint units of the same cryptocurrency.| --- | Name | Acronym | Miner action to mint new cryptocurrency | | ---- | ----- | -------- | | Proof-of-burn | PoB |Destroy a base cryptocurrency to mint units of new cyrptocurrency| | Proof-of-transfer | PoX |Transfer a base cryptocurrency to mint units of a new cryptocurrency| --- ### Stacking <style> code.blue { color: #337AB7 !important; } code.orange { color: #F7A004 !important; } </style> - <code class="blue">Stackers </code> lock their STX and run full-nodes to participate in the consensus algorithm. Earn a payout (roughly) per month for actively participating. - <code class="blue">STX miners</code> process transactions, Clarity contracts, write new blocks, and mint new STX. --- #### Economics - Stackers earn Bitcoin rewards. - Combines economic benefits from PoS with security and stability of PoW. --- ### Pre-requisites for participating Stacker - Should control a STX wallet with >=0.02% of unlocked total share of STX or participate in mining pools(30k-100k adjusting reward thresholds). - Locks the STX for specified time (10 days to 3 months). - Provides BTC address to receive rewards. - Votes on a Stacks chain tip. - Native support for delegation available for those below stacking threshold to join a stacking pool. --- ### Phases of Stacking Algorithm 1. Prepare Phase 2. Reward Phase --- ### Prepare Phase <style> code.blue { color: #337AB7 !important; } code.orange { color: #F7A004 !important; } </style> - <code class="blue">Anchor Block Selection</code> - Stacks chain block. Mining descendant forks of anchor block requires transfering mining funds to reward address. - <code class="blue"> Consensus on Reward set</code>- Eligible Stackers BTC address ,Has to be agreed by network . --- #### Anchor Block Selection 1. Require certain number of miner confirmations. 2. Anchor Block confirmed by **F*W** miner support. ``` F= large fraction or higher threshold W= Window of BTC blocks before reward cycle begins. ``` 3. Secured by threshold t of valid Stacker support message signals. --- ### Reward Phase 1. Leader election by VRF and user-supported burns. 2. Leader sends committed BTC funds to burn address / reward address based on address selection rules. --- #### Mining the next Block /Leader Election: Leader election with user-supported burns. Step 1:Register a VRF public key Step 2:Commit STX chain tip , new VRF seed(M) , &Transfer Step 3:If selected, broadcast VRF proof(P) & block Index sample with Mn=hash(Pn) Randomize order with POW nonce --- #### Reward Address Fact : - Receives funds when miner builds off descendant of anchor block. - Per Block 5 address selected from reward set Using VRF. - Once selected, reward address is removed from next sortition. --- #### Address Validity Rules: | Miner Action | Funds to Burn address | Funds to Reward Address | | --------------------------------------------------------- | --------------------- | ----------------------- | | Building off any chain tip not descendant of anchor block | Yes | | | Building off descendant of anchor block | No | Yes | --- #### Facts of Reward cycle: - Fixed Length. - Each reward cycle may transfer miner funds to up to 5000 Bitcoin addresses - Per block /Per sortition 5 address selected from reward set. - Few Participating Address in Stacking than available slots -Remaining miner commitments sent to Burn address. --- #### Stacking Delegation: - Allows a Stacks wallet address (the represented address) to designate another address (the delegate address) for participating in the Stacking protocol. - Two new transaction types Delegate Funds and Terminate Delegation. - Single STX address as Delegate for many represented STX address, then Broadcast Signed Stacking message/Each address. --- ### Rewards in Stacks 2.0: All rewards distributed post completion of reward cycle. ``` | Rewards | Miners Context | Stackers Context | | ------------------------------ | -------------- | ---------------- | | Block Rewards/New STX | Yes | | | Clarity Fees | Yes | | | Transaction Fee | Yes | | | BTC commitment funds of Miners | | Yes | | User-supported burns rewards | Yes | | ``` --- ### Ongoing Research/Consolidations ``` * Addressing Miner Consolidation * Time-Bounded POX (Initial Phase & Sunset Phase) * Developer Fund * Discounted Mining * Bitcoin Bandwidth ``` --- ## For the community. Made by the community :heart: Get connected to the blockstack community through - :computer: **GitHub** https://github.com/blockstack/ - :video_game: **Discord** https://discord.gg/TQebdvp - :mailbox: **Telegram** @blockstack - :bird: **Twitter** @blockstack / @blockstackr - :pick: Interested to be a miner? Apply [here](https://blocksurvey.org/survey/1216tyLMMnobWmRDpGx2z33uUcwjww4kMm/65a3e307-5d43-45e4-ad64-5d791304a0d8) :point_up:
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Phase 1: Clarity Mini Hack 🔨

:video_game: This mini hack lets you experiment and familiarize with Clarity’s developer environment. Contracts are awarded based on the level of impact. We need a collection of fully-functional contracts (simple and unique) that demonstrate Clarity Smart Contracting language features. :memo: How do I participate? Maximum of 3 entries per person, given we want to encourage more developers exploring the code to begin with. Your clarity contract(s) could be featured on upcoming claritylang website. Step 1: Familiarize yourself with Clarity [ ] Try Clarity Tutorial [ ] Usage with Clarity [ ] How to build Clarity Apps

4/29/2020
Blockstack Proof of Transfer Talk slides template

View the slide with "Slide Mode".

4/3/2020
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