XLM Proof of Trust

XLM Proof of Trust

XLM (Stellar) and XRP (Ripple) use alternative consensus mechanisms to Proof of Work (PoW) and do not rely on mining or energy-intensive calculations. Here's how each of their systems "proofs" transactions or reaches consensus:

1. XLM (Stellar) - Stellar Consensus Protocol (SCP)

How it proves transactions:

• Federated Byzantine Agreement (FBA): Stellar uses the Stellar Consensus Protocol (SCP), which is based on the concept of federated Byzantine Agreement. Validators (or nodes) in the Stellar network must come to a consensus on the order and validity of transactions, but they do so by relying on quorum slices—groups of trusted validators.

• Quorum Slices: Each node in the network selects a small group of trusted validators, and if enough of those validators agree on a transaction, the network reaches consensus. A majority of these quorum slices must agree on a transaction for it to be considered valid.

• No Mining: Unlike PoW systems, SCP does not require mining. Instead, the system depends on cooperation between a diverse group of validators to confirm and validate transactions.

• Proof of Trust: The "proof" in Stellar's consensus system is based on trust. Validators vouch for transactions by agreeing to include them in the ledger if enough of their trusted peers (the quorum slices) also agree.

2. XRP (Ripple) - RippleNet Consensus Algorithm

How it proves transactions:

• Unique Node List (UNL): Ripple uses a Unique Node List (UNL) of trusted validators to agree on the state of the ledger. These validators do not mine blocks but instead verify the legitimacy of transactions and the overall ledger.

• Consensus on Validity: XRP's consensus algorithm involves the XRP Ledger's validators independently checking transactions. They reach consensus on the transaction history by using a process of rounds to verify and finalize transactions. In each round, validators vote on the proposed transactions.

• Agreement Process: If a majority of the nodes (based on the UNL) agree that a transaction is valid, it gets confirmed and added to the ledger. Unlike PoW, this consensus process doesn't involve complex computations or energy-intensive processes.

• No Mining: Ripple does not use mining or Proof of Work. Transactions are validated by trusted validators, and as long as a majority agrees on the correctness of the transaction, it is considered confirmed.

• Proof of Trust: Much like Stellar, Ripple's system relies on the trustworthiness of the selected validators. The "proof" is that the agreed-upon transaction has been verified by trusted validators who are part of the network.

In Summary:

Both XLM and XRP prove the validity of transactions without mining through consensus protocols:

• XLM uses the Stellar Consensus Protocol (SCP), based on Federated Byzantine Agreement, where validators agree on transactions through quorum slices.
• XRP uses a RippleNet consensus mechanism, where validators reach agreement on the transaction ledger through a majority vote process, with the aid of a Unique Node List (UNL).

These methods ensure the network operates efficiently and securely without the energy and computational cost associated with traditional Proof of Work systems.