ℹ️Features
Masternodes
In addition to traditional Proof of Work (PoW) rewards for mining BLOCX, users are also rewarded for running and maintaining special servers called masternodes. Thanks to this innovative two tier network, BLOCX can offer innovative features in a trustless and decentralized way. Masternodes are used to power CoinJoin, InstantSend, and the governance and treasury system. Users are rewarded for running masternodes; a percentage of the block reward is allocated to pay the masternode network.
Masternodes enable the following services:
InstantSend allows for near-instant transactions. BLOCX InstantSend transactions are fully confirmed within two seconds.
CoinJoin gives financial privacy through a decentralized implementation of CoinJoin.
ChainLocks, which protects the blockchain against 51% mining attacks by signing blocks as they are mined.
Governance and Treasury allows stakeholders in BLOCX to determine the direction of the project and devotes 7% of the block reward to development of the project and ecosystem.
Masternode owners must have possession of 100,000 BLOCX, which they prove by signing a message included in a special transaction written to the blockchain. The BLOCX can be moved or spent at any time, but doing so will cause the masternode to fall out of queue and stop earning rewards. Masternode users are also given voting rights on proposals. Each masternode has one vote and this vote can be used on budget proposals or important decisions that affect BLOCX.
Masternodes cost money and effort to host so they are paid a percentage of the block reward as an incentive. Because only one masternode is paid in each block, the frequency of the payment can vary, as well as the value of the BLOCX paid out.
InstantSend
Traditional decentralized cryptocurrencies must wait for certain period of time for enough blocks to pass to ensure that a transaction is both irreversible and not an attempt to double-spend money which has already been spent elsewhere. This process is time-consuming, and may take anywhere from 15 minutes to one hour for the widely accepted number of six blocks to accumulate. Other cryptocurrencies achieve faster transaction confirmation time by centralizing authority on the network to various degrees.
BLOCX suffers from neither of these limitations thanks to its second-layer network of masternodes. Masternodes regularly form voting quorums to check whether or not a submitted transaction is valid. If it is valid, the masternodes “lock” the inputs for the transaction and broadcast this information to the network, effectively promising that the transaction will be included in subsequently mined blocks and not allowing any other spending of these inputs during the confirmation time period.
InstantSend technology will allow for cryptocurrencies such as BLOCX to compete with nearly instantaneous transaction systems such as credit cards for point-of-sale situations while not relying on a centralized authority.
ChainLocks
ChainLocks are a feature provided by the BLOCX Network which provides certainty when accepting payments. This technology, particularly when used in parallel with InstantSend, creates an environment in which payments can be accepted immediately and without the risk of “Blockchain Reorganization Events”.
The risk of blockchain reorganization is typically addressed by requiring multiple “confirmations” before a transaction can be safely accepted as payment. This type of indirect security is effective, but at a cost of time and user experience. ChainLocks are a solution for this problem.
ChainLocks Process Overview
Every twelve hours a new “LLMQ” (Long-Living Masternode Quorum) is formed using a “DKG” (Distributed Key Generation) process. All members of this Quorum are responsible for observing, and subsequently affirming, newly mined blocks:
Whenever a block is mined, Quorum Members will broadcast a signed message containing the observed block to the rest of the Quorum.
If 60% or more of the Quorum sees the same new block they will collectively form a “CLSIG” (ChainLock Signature) message which will be broadcast to the remainder of the network.
When a valid ChainLock Signature is received by a client on the network, it will reject all blocks at the same height that do not match the block specified in that message.
The result is a quick and unambiguous decision on the “correct” blockchain for integrated clients and wallets. From a security perspective, this also makes reorganizations prior to this block impossible.
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