Paper 2017/367

Fork-Free Hybrid Consensus with Flexible Proof-of-Activity

Zhiqiang Liu, Shuyang Tang, Sherman S. M. Chow, Zhen Liu, and Yu Long

Abstract

Bitcoin and its underlying blockchain mechanism have been attracting much attention. One of their core innovations, Proof-of-Work (PoW), is notoriously inefficient which potentially motivates a centralization of computing power, defeating the original goal of decentralization. Proof-of-Stake (PoS) is later proposed to replace PoW. However, both PoW and PoS have different inherent advantages and disadvantages, so does Proof-of-Activity (PoA) of Bentov et al. (SIGMETRICS 2014) which only offers limited combinations of two mechanisms. On the other hand, the hybrid consensus protocol of Pass and Shi (ePrint 16/917) aims to improve the efficiency by dynamically maintaining a rotating committee. Yet, there are unsatisfactory issues including chain forks and fair committee election. In this paper, we firstly devise a generalized variant of PoW. After that, we leverage our newly proposed generalized PoW to construct a fork-free hybrid consensus protocol, which addresses issues faced by the existing hybrid consensus mechanism. We further combine our fork-free hybrid consensus mechanism with PoS for a flexible version of PoA, which offers a flexible combination of PoW and PoS. Compared with Bentov et al.’s PoA, our “flexible PoA” improves the efficiency and provides more flexible combinations of PoW and PoS, resulting in a more powerful and applicable consensus protocol.