Proof-of-Stake

Tendermint makes it possible to define a currency, and denominate the voting power in that currency. ALIA Miners are the ideal candidates to participate in blockchain validation because they earn the first minted coins and have verifiable security controls. Voting power is denominated in ALIA currency as Proof-of-Stake. ALIA’s proof-of-stake requirements ensure that nodes who participate in work or validation tasks have a vested interest in providing accurate results. Validators are forced, by logic in the application, to “bond” their currency holdings in a security deposit that is destroyed if they’re found to misbehave in the consensus protocol.

The bond requirement adds an economic element to the security of the protocol, allowing one to quantify the cost of violating the assumption that less than one-third of voting power is Byzantine. All nodes must maintain a wallet with a balance high enough to cover the transactions they are validating. Their stake is added as part of the transaction on the block and credited back after validation of the block. The stake rate of the block’s maximum incentive value is dependent on the type of transaction – either NMT work or Translation Work.