For blockchains, the consensus algorithm is how you keep all the different computers in the network honest. You might have heard of examples like proof-of-work (PoW--this is why Bitcoin uses so much energy) or proof-of-stake (PoS--which carries the risk of a "51% attack").
The Koinos consensus algorithm has not been announced yet, but we got some news from Andrew Levine (CEO of The Koinos Group) in the Koinos telegram yesterday.
whitepaper coming in 3 weeks... We will finalize the high level design of consensus in the whitepaper as we begin work on implementing it as a system owned smart contract.
Exciting! There's a lot to unpack there, so here's my key takeaways:
- The Koinos consensus algorithm will be something new (not PoW or PoS)
- The team is currently finalizing the design of the algorithm and will share that design as soon as they have it
- They will start building it after the whitepaper is released "in 3 weeks" (likely just before Christmas)
- We'll get into "system owned smart contract" in another email
If I had to guess, I would assume the consensus algorithm will use the mana system, but I don't have any hard facts at this point. I'll share my analysis once the whitepaper is released.
Next email on Monday,
P.S. The crypto market just took a huge dive. This is a broader issue than just Koinos, so I won't go into detail here. Do your own research before making investment decisions.