POS

SatoshiNet adopts a POS mechanism similar to the one used in the ETH network. Miners obtain mining qualifications by staking Pearl and are guided and supported in the development and growth of SatoshiNet by a non-profit foundation.

The BTC mainnet is already highly secure, and all assets on SatoshiNet originate from the mainnet, locked in Lightning channels with user control. Therefore, the decentralization requirements for SatoshiNet are not as stringent. By leveraging ETH's experience to build a POS consensus network, SatoshiNet can achieve an adequate level of decentralization while also addressing BTC mainnet’s key shortcoming—efficiency. Moreover, due to the POS mechanism, SatoshiNet has minimal hardware requirements, further lowering the cost of maintaining the network and, in turn, reducing transaction network fees.

In summary, the POS consensus in SatoshiNet perfectly complements the POW consensus of the BTC mainnet. Both consensus mechanisms play their respective roles, providing a secure, stable, efficient, and cost-effective foundation for the BTC ecosystem.

The core elements of the POS consensus mechanism include:

1. Staking Pearl to obtain mining rights on SatoshiNet.

2. A decentralized Sequencer driven by the UTXO model, which has two key features:

   • The sequencing results of the Sequencer are deterministic, determined by the UTXO ledger.

   • The Sequencer is decentralized, running on every SatoshiNet node. It performs sequencing itself and also verifies the sequencing results of other nodes.

Compared to the centralized Sequencers of other public chains, SatoshiNet's decentralized Sequencer eliminates many of the risks associated with centralization.