Consensus Layer
The Alchemy Chain consensus layer is designed to facilitate efficient and secure financial transactions within the Ethereum Virtual Machine (EVM) environment. By integrating a price feed mechanism and innovative on-chain conversion rates handling, Alchemy Chain aims to provide a robust platform for real-time stablecoin conversions and reliable transaction settlement.
Consensus Mechanism
1. Transaction Execution and Settlement
In traditional blockchain systems, transaction execution and consensus are achieved through a series of steps, including transaction validation, ordering, and commitment to the blockchain. Alchemy Chain builds upon this foundation while introducing novel elements to enhance the efficiency and reliability of financial transactions.
2. On-Chain Conversion Rates
The core innovation of Alchemy Chain's consensus layer lies in its on-chain handling of conversion rates. This approach enables real-time and reliable financial transactions by leveraging native transaction mechanisms to execute live conversion calculations directly on-chain.
Validator Nodes and Price Feeds
Validator nodes play a pivotal role in the on-chain conversion rates mechanism. These nodes are responsible for providing price feeds during transaction execution and performing price validation within the consensus layer. By integrating price feeds directly into the consensus process, Alchemy Chain eliminates the need for asynchronous handling of external data sources.
Price Feed Integration
The price feed mechanism is designed to ensure the accuracy and reliability of conversion rates used in transactions. Validator nodes gather price data from various sources and validate it through a consensus process. This ensures that the conversion rates used in transactions are up-to-date and reflect the current market conditions.
Real-Time Applicability and Operational Integrity
By handling conversion rates on-chain, Alchemy Chain ensures that transactions can be executed with real-time applicability. This means that users can perform stablecoin conversions and other financial transactions without delays caused by external data sourcing and processing. Additionally, the on-chain validation of conversion rates enhances the operational integrity of the network, reducing the risk of discrepancies and ensuring consistent transaction outcomes.
3. Data Storage and Integrity
Once a transaction is validated and settled on Alchemy Chain, the complete transaction data is stored off-chain. However, the hash of this data is stored on-chain. This approach balances data integrity with efficient blockchain size. The on-chain hash serves as a verifiable reference to the off-chain data, allowing users and auditors to verify the integrity of transaction data without burdening the blockchain with large amounts of data.
4. Trusted Proof of Authority (TPoA)
The Alchemy Chain consensus layer utilizes a Trusted Proof of Authority (TPoA) mechanism to ensure the security and reliability of the network. In this mechanism, execution and validator nodes are authorized through a trusted process. This means that only nodes that meet specific criteria and are verified can participate in the consensus and validation process. The TPoA mechanism provides several benefits:
Security: By restricting participation to authorized nodes, the network is protected from malicious actors and potential attacks.
Efficiency: Authorized nodes are more likely to act in the best interest of the network, leading to faster and more efficient consensus achievement.
Accountability: The identity of validator nodes is known, making them accountable for their actions within the network.
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