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5. Consensus Algorithm & Network Design

Sustainable Design Based on PoS

DEAP Network employs a consensus algorithm and network architecture that balances scalability and security to safely and efficiently aggregate activity data. Our Layer 1 chain is built on a Proof of Stake (PoS) consensus mechanism, which allows us to achieve high transaction throughput and relatively low fees while using staking to mitigate the risk of malicious actors producing fraudulent blocks. This approach also avoids the high energy consumption associated with Proof of Work (PoW), providing a sustainable environment for network participants.

Integration with Decentralized Storage and Data Integrity Verification

An integral part of our network architecture is its seamless integration with decentralized storage. The actual activity data is stored off-chain using solutions such as IPFS, Filecoin, and Arweave, while only data hashes and metadata are recorded on-chain. To reduce the risk of tampering with off-chain data, we employ dedicated verification mechanisms (e.g., Proof of Storage or Proof of Resource) that monitor the performance and validity of storage nodes, thereby enhancing overall availability. Additionally, validator nodes not only handle block production and transaction verification but also work in tandem with storage nodes to periodically check the integrity of stored data.

Incentive Design and Node Selection Algorithm

Within the network, we use a comprehensive selection algorithm that considers factors such as staking amount, operational performance, and node reputation. This ensures that both validator nodes and storage nodes receive appropriate incentives for their contributions. Malicious behavior is discouraged through penalties such as stake slashing and reward suspension, while honest node operators are rewarded with sustainable returns. Furthermore, the network governance system, facilitated by on-chain voting, allows the community to decide on fee adjustments, protocol upgrades, and parameter changes—thus ensuring continuous evolution and maintaining trust within the network.

Next-Generation Infrastructure Through a Hybrid of PoS and Decentralized Storage

Overall, the consensus algorithm and network design of DEAP Network are based on a hybrid model that combines the high scalability of a PoS blockchain with the massive data retention capabilities of decentralized storage. This combination enables us to safely record the “actions” of people worldwide and build a next-generation infrastructure where both data providers and users can fairly benefit.