Getting to know NPoS: Consensus Mechanism for Network Availability

Bittime - Avail uses a consensus mechanism called Nominated Proof of Stake (NPoS) to secure the network and distribute rewards fairly. This article will explain in detail about NPoS and how it works in the Avail ecosystem.

What is Nominated Proof of Stake?

NPoS is a blockchain consensus mechanism designed to ensure a fair and decentralized network. In contrast to Delegated Proof of Stake (DPoS), NPoS distributes staking rewards more evenly among validators. While having more tokens increases the chances of becoming a validator, rewards are split among active validators, not just those with the most tokens.

This creates a more balanced and democratic environment, reducing the risk of centralization that often occurs in DPoS systems. NPoS is considered one of the most decentralized Proof of Stake (PoS) designs today, making it the right choice for Avail in building a strong and neutral Web3 unification layer.

Read also: Avail (AVAIL): Mainnet and Coin Release Update Info

NPoS vs. DPoS: Key Differences

In DPoS, validators with the most tokens get the most rewards. This creates a feedback loop where validators with more tokens earn more rewards, further strengthening their position. Concentration of tokens in the hands of a few validators can lead to network centralization and vulnerability.

NPoS addresses this problem by spreading tokens and rewards among a wider range of validators. This is achieved through a combination of on-chain selection methods and the Phragmén selection algorithm. This algorithm selects validators based on factors such as the number of tokens staked and past performance, preventing control by a single validator or small group.

How NPoS in Avail

The Avail Network uses NPoS to select validators that produce blocks. Here is the explanation:

• Validator Selection: The Phragmén algorithm selects validators for each block production period, called an era. The algorithm considers the number of tokens staked and the validator's previous performance.
• Nominator: Not all AVAIL holders need to run a validator node. Nominators are token holders who delegate their tokens to validators they trust. They can select up to 16 validators and prioritize them based on their own judgment.
• Prize Distribution: In contrast to DPoS, rewards are distributed more evenly among active validators in one era. This encourages nominators to spread their tokens across multiple validators to increase the chances of getting a reward.
• Nakamoto coefficient: The Nakamoto coefficient is a metric for assessing blockchain decentralization. The higher the coefficient, the more independent entities are required to disrupt the network. Avail aims to achieve a high Nakamoto coefficient through NPoS.

Avail Mainnet: The Important Stages

Avail's mainnet rollout will be gradual to ensure network stability. Here is the launch plan:

• Initial Validator Set: Starting with 40-50 active validators.
• Gradual Improvement: The number of validators will increase to 100 in the first six months.
• Final Target: Reach 250-300 validators in the first year, with the ultimate goal of reaching 1000 active validators.

By using NPoS, Avail is committed to building a decentralized and secure network. This is an important foundation for creating a reliable unification layer for Web3 in the future.

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