Validators
Technical architecture
Consensus mechanism
Midl utilizes a Delegated Proof-of-Stake (DPoS) consensus mechanism to achieve faster transaction finality than relying exclusively on Bitcoin's proof-of-work consensus. Validators are selected based on their stake – the Midl tokens/BTC ratio – and are responsible for processing transactions, maintaining the network, and ensuring security.
Validator selection: Top N validators are chosen weekly based on their total stake.
Validator groups: Validators are divided into groups, each managing TSS Vaults for transaction processing.
Rotation: Validator sets are rotated periodically to ensure decentralization and security.
Validators and staking
Staking requirements: Validators must stake their BTC and Midl tokens in the System's Staking Contract.
Delegation: Users can delegate their stakes to validators, sharing in network and Native BTC Yield.
Infrastructure responsibilities: Validators must run Midl nodes, manage threshold signature schemes (TSS Vaults), and monitor Midl and Bitcoin networks.
Slashing conditions
Validators face slashing (loss of stake) for malicious activities such as:
Refusal to execute user transactions.
Prolonged non-participation in consensus
Invalid transaction execution.
Attempts to attack or destabilize the network.
Network operation
● Execution layer dependency: The Midl network relies entirely on Bitcoin's blockchain and security mechanisms.
● User interaction:
Creating BTC transactions: Users create BTC transactions with funds (BTC and Runes) intended for use in dApps and send them to threshold signature schemes (TSS Vaults) controlled by validators. This approach emphasizes decentralization and ensures that no single entity controls the funds, enhancing security and trust in the network.
Signing dApp messages: Users sign virtual Midl dApp transactions and attach the BTC transaction hash using their BTC private keys.
Result: The user awaits BTC dApp transactions in the form of receiving desired BTC and Runes due to this interaction.
● Validators processing:
Acknowledging BTC blocks: Validators acknowledge the next Bitcoin block and the transactions sent to the Midl TSS Vault.
Processing Midl transactions: Validators process the corresponding Midl transactions.
Finish validating user intents as finality reached: At this point, Validators commit Midl block with Merkle root of Bitcoin transactions sent to Midl TSS Vaults.
Returning BTC transactions: Validators send corresponding Bitcoin transactions back to users.
● Scalability:
Multiple transactions per BTC transaction: Users can send up to 10 Midl transactions within a single BTC transaction, enhancing scalability.
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