Consensus

Sustainability is One of our Core beliefs, keeping that in mind we ensure state-of-the-art energy consumption by using Nominated Proof of Stake (NPoS) as our consensus protocol.

In NPoS, Trusted Validators are elected democratically by the Nominators to participate in consensus building with other validators.

The core concept behind Proof of Stake is having "Skin in the Game", which refers to the economic incentive for one to act appropriately instead of maliciously as they stand to loose their stake in part or as a whole.

Nominators contribute to the security of the network by electing upto 16 trusted validators with their stake. Nominators are subject to both rewards from the validation process and slashing if the elected/nominated validators behave maliciously.

The key objective of NPoS is to ensure decentralization and fair representation through proportional justified representation as well as high security through maximin support. Its optimized to elect a set number of individuals from a larger pool/set of candidates.

Validators hold a key role in the upkeep and security of the network/relay chain by staking the Native token CAPS and by participating in the process of achieving consensus and verifying transactions alongside other validators.

As a great man once said "With great power, comes great responsibility", it couldn't be more true for the validators. The Validator will have the responsibility to run a Node that will validate transactions and keep the blockchain secure. They need to run secure and reliable infrastructure and be available for consensus building at all times. For validation of transactions and reaching consensus, validators are paid in the native token $CAPS to incentivise appropriate behaviour. Additionally, validators need a stake backing their legitimacy thereby disincentivising malicious behaviour in fear of the stake being slashed or worse, siezed in the worst case scenarios.