DPoS Consensus

LBTC is based on the DPoS(Delegated Proof of Stake) consensus mechanism. This method of consensus was originally created by the BitShares team. DPoS is based on delegates creating blocks. Delegates are trusted accounts(address) which are elected to be “Active Delegates”. The 101 delegate accounts(address) with the most votes create the blocks. Other delegates are listed as “Standby Delegates”, and can advance to the top 101 list by receiving votes from the other LBTC owners. All users of LBTC have 51 votes available to elect their favorite delegates into the top 101 list. The weight of each of the 101 votes is proportional to the amount of LBTC the user has in the wallet the votes are cast from. This total amount is shown on the delegate list, and is listed as LBTC available that is voted for that delegate. Delegate promotion to the top 101 or demotion to the standby list happens at the completion of the 101 block generation cycle. Each cycle of 101 blocks is created by the top 101 delegates in random order. The block time is 3 seconds. Newly created blocks are broadcast to the network and added to the blockchain. After 68 confirmations, a block, along with its transactions, can be considered as confirmed. A complete 101 block generation cycle takes approximately 5 minutes.

In DPoS, forks can occur, but the longest fork wins. Delegates must be online all of the time and have sufficient uptime. Uptime is used to catalogue the reliability of a node by logging each time that it misses a block that was assigned to it. Users vote for the top 101 delegates based on several factors, uptime being one key factor used to make a determination. If a delegate drops below a certain rating, users may remove votes from the delegate in question due to poor performance.