In this article, we’ll explain how our PoU Consensus Mechanism works. The links for you to actually try it out yourself will be at the end of this article. So let’s dive right in!
Proof of Utility (PoU) Consensus Mechanism: Think of PoU as a sort of credit score: a single value that describes the trustworthiness of an account by taking into account a range of different variables, and in a consensus mechanism, votes from an entity with a higher PoU would be weighted more than someone with a lower PoU. Our model thus far takes four different variables into account: the stake size, the age of the account, the average staking time, and the last staking time. Each of these variables is assigned a dynamically changing weight that will adjust itself in accordance to the system demographics.
In that sense, PoU is akin to a multidimensional, dynamic PoS, except one cannot game the system simply by controlling the majority of the stakes. Although we know which variables go into making a higher PoU, we don’t know what the weights of each one are, and furthermore, the weights will change over time. This effectively guarantees that no one will remain king of the hill.
So let’s start with the demo:
Let’s assume, you’re a node on the jura protocol. Now your ranking on the network will be dependent on four metrics:
- Stake Size
- Time spent on the platform
- Average time between consecutive stakes
- Last Staking Time
Now, let’s say your current stake size is 5, CST is 1.7, AIST is 0. Your current PoU score will be 0.1
Let’s say we vote with more stake size (greater than 5).
You can see your overall score automatically increases. Now if you keep on voting with hire stakes without spending a lot of time in between your votes, your PoU score will increase relatively quickly.
As you can see, the higher your stake size without skipping a voting turn will bring your PoU score very close to 1 which is extremely high.
But now, let’s say you do not participate in voting for the next five rounds, this will have a huge effect on your PoU Score.
Now you can see that the LIST is also in action which is the last time since you voted with a stake and your score automatically drop but 0.3 points.
But then if you decide to keep on voting/participating but with a relatively lower stake size, that will have a negative effect on your overall PoU score.
As you can see, the PoU score automatically drops like a lot. This is to make sure that nodes on the network are unable to game the system by voting in higher-amounts but with less stake size.
As there are more rounds in which users participate, the calculation of the score becomes more and more complicated. The key to a higher PoU score is consistency and higher rate of participation with higher stakes on the platform.
PoU will ensure there is no gaming of the system and will completely eliminate the possibility of 51% attack or penny attack because, at the end, the PoU score is highly volative and strongly co-related with the positive effort of the user.
We hope you were able to get an idea of the how our PoU will work at the backend and will ensure the authenticity of the protocol
Now, it’s time for you to try it out yourself. Follow the link and explore our PoU: https://jura.network/pou.html