Consensus Mechanism: Proof-of-Stake (PoS)

The GAYA blockchain utilizes a robust Proof-of-Stake (PoS) consensus algorithm to validate transactions and uphold network security. This model encourages active participation from validators, who commit their GayaCoins as collateral to propose and validate new blocks. By staking GayaCoins, validators contribute to a highly secure and energy-efficient network, aligning with GAYA’s commitment to sustainability and decentralization.

Validators play a pivotal role in preserving the integrity of the GAYA ecosystem. To ensure accountability, any validator found acting dishonestly or failing to fulfill their responsibilities faces penalties, including partial or full forfeiture (slashing) of their staked GayaCoins. This slashing mechanism provides a strong economic incentive for validators to operate in the network’s best interest, strengthening the security, trustworthiness, and resilience of the GAYA blockchain.

Key Validator Roles

1. Proposing Blocks: Validators actively propose new blocks by collecting transactions, assembling them into a valid block, and broadcasting this block proposal to the network. Proposing blocks is essential to ensuring a continuous flow of transactions and maintaining the network’s efficiency.

2. Verifying Transactions: Validators are tasked with verifying the authenticity and validity of each transaction. Through this verification, validators ensure that only legitimate transactions are included in blocks, preserving the integrity of the GAYA blockchain.

3. Earning Staking Rewards: Validators earn rewards in GayaCoins for their contribution to the network’s stability, security, and performance. These rewards serve as an incentive for validators to remain committed to the network while compensating them for their computational efforts.

In the GAYA PoS system, the selection of validators and the allocation of rewards are influenced by the amount of GayaCoins staked. This model encourages greater network participation, decentralizes control, and enhances the network’s resistance to malicious attacks, fostering an ecosystem where validators are motivated to act responsibly and protect the blockchain's integrity.