StakeDag: Stake-based Consensus For Scalable Trustless Systems (1907.03655v1)

Abstract: Trustless systems, such as those blockchain enpowered, provide trust in the system regardless of the trust of its participants, who may be honest or malicious. Proof-of-stake (PoS) protocols and DAG-based approaches have emerged as a better alternative than the proof of work (PoW) for consensus. This paper introduces a new model, so-called \emph{\stakedag}, which aims for PoS consensus in a DAG-based trustless system. We address a general model of trustless system in which participants are distinguished by their stake or trust: users and validators. Users are normal participants with a no assumed trust and validators are high profile participants with an established trust. We then propose a new family of stake-based consensus protocols $\mathfrak{S}$, operating on the DAG as in the Lachesis protocol~\cite{lachesis01}. Specifically, we propose a stake-based protocol $S_\phi$ that leverages participants' stake as validating weights to achieve more secure distributed systems with practical Byzantine fault tolerance (pBFT) in leaderless asynchronous Directed Acyclic Graph (DAG). We then present a general model of staking for asynchronous DAG-based distributed systems.