The Proof of Authority and Arcturus
Tags: blockchain, cryptocurrency, testnet, faucet
Published: 2024-02-29 16:45:56


The Proof of Authority consensus algorithm utilizes the value of identities, meaning that block validators use their reputation instead of staking coins. Therefore, the security of PoA-based blockchain networks is ensured by validator nodes selected as trusted parties in a random manner.

PoS networks also have some shortcomings. In PoS networks, incentives for validators are provided by the fear of losing the amount they have staked, or locked, in the network.

Proof of Authority was designed to address this issue. In PoA networks, validators stake their reputation, which is of equal value to everyone, rather than their money. Validators with identities known to all blockchain participants thus have equal effort in securing the network.

The extremely limited number of validators in PoA networks also means that the confirmation time between two blocks will be significantly reduced compared to PoW networks, allowing for a much higher throughput of transactions. Transaction fees in PoA networks are also significantly lower compared to networks where astronomical fees are sometimes paid.

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The Arcturus chain is built upon the Proof of Authority mechanism. This mechanism operates by assigning each validator a unique identity along with a corresponding private key. These private keys are used for signing and broadcasting transactions across the network. Each validator is responsible for verifying and validating the legitimacy of transactions.

The Arcturus network only accepts and includes blocks that are signed by valid authorities possessing the necessary private keys. This ensures the reliability and integrity of the network, as blocks are accepted based on predefined network rules.

Validators within the network communicate with each other to coordinate and synchronize activities, thereby maintaining consensus and ensuring the reliability of the blockchain. Additionally, the Arcturus network incorporates mechanisms for dynamic management of validators, facilitating the addition or removal of validators to quickly adapt to changing network needs.

Furthermore, the chain includes incentive structures to motivate validators and penalize misconduct, ensuring the overall health and security of the project. Additionally, the Arcturus network leverages protocols such as Byzantine Fault Tolerance (BFT) and Delegated Proof of Authority (DPoA) to enhance resilience against malicious actors and ensure network reliability

Arcturus combines mechanisms such as PoA, BFT and DPoA to provide a reliable, flexible and robust blockchain solution.

**51% ATTACK**

This attack represents the risks of deception in the consensus protocol. One such risk, especially in the context of double spending, is commonly referred to as a 51% attack. A 51% attack can occur when malicious miners control more than 51% of the computing power in the blockchain, allowing them to manipulate transactions and compromise the accuracy of the network. Another example of a 51% attack can occur when a group of miners collaborates during the verification stage to conspire. If a powerful user or a group of maliciously collaborating users controls the blockchain, various security and privacy attacks can be initiated, such as double spending, reversing transactions as if they never occurred, and blocking transactions of certain users.

Bitcoin Gold uses the Equihash algorithm to enable mining on consumer-grade graphics cards. The Bitcoin Gold network experienced a 51% attack on January 2020, resulting in over $70,000 worth of BTG being double-spent. The cryptocurrency, which forked from Bitcoin, underwent more than 10 reorganizations on January 23 and 24. Following this attack, losses close to $18,000,000 were incurred. Subsequently, Ethereum Classic and Vertcoin also fell victim to 51% attacks.

Due to not requiring specialized hardware, PoA blockchains are much more cost-effective to manage and are also more resistant to attacks compared to PoS blockchains. Organizing a 51% attack on PoA networks, where control of the blockchain can be seized by capturing more than half of the network’s nodes, is much less feasible because capturing 51% control of non-directly connected nodes is much more difficult. Additionally, since the identities of nodes are verified in advance, it is possible to protect the network by excluding offline nodes from the verification process.

https://arcturuschain.io/