Validator configuration

XP.NETWORK's NFT Bridge validators are crucial in maintaining the network's security, adaptability, and performance. Here's a detailed expansion of how these validators work, including information on clusters, fee payments, voting commitment, participant selection, rewards, and penalties:

Clusters

Clusters are the foundational components of the XP.NETWORK . Each cluster consists of 11 validators, serving as the basic building blocks of the network's infrastructure.

Dynamic Selection: The clusters are dynamically selected and replaced in each epoch. This dynamic selection process ensures the network's adaptability to changing conditions, maintaining security, and optimizing performance. The network can adapt to new circumstances and address vulnerabilities by periodically reconfiguring clusters.

Algorithm for Selection: The selection process for active validators is based on reputation but excludes the current voting cluster's validators. This approach promotes fairness and helps avoid biases in the validator selection process. It also reduces the risk of collision and enhances network security.

Updating Group Key: Besides regular validator fees, a separate fee for updating the group key mapping on-chain is paid every two epochs. This fee structure helps ensure the network's security and efficiency by covering the costs of maintaining the group key mappings.

Voting Commitment

Decentralized Consensus: To maintain decentralization, a randomly selected leader within the cluster is responsible for finalizing commitment on the chain. This leader is chosen through a randomized process, preventing predictability and ensuring fairness in the consensus process. This approach helps prevent centralization and enhances the network's security.

BFT: XP.NETWORK's NFT Bridge validators use a consensus mechanism that requires Byzantine Fault Tolerance (BFT) from two-thirds of the validators. It means that the network can tolerate the unavailability or malicious behavior of up to one-third of the validators while maintaining the consensus process's integrity and security.

By requiring a two-thirds majority for consensus, XP.NETWORK ensures a high level of security and robustness. This design allows the network to withstand potential failures, including the unavailability or malicious actions of a significant portion of its validators, and continue to operate securely and reliably. This Byzantine Fault Tolerance mechanism is a fundamental aspect of the network's consensus protocol, safeguarding it against potential threats and disruptions.

Rewards and Penalties

Fees: Validator fees are paid at the end of each epoch. This system ensures that validators are fairly compensated for the services they provide to the network. This compensation is essential for incentivizing validators to uphold their responsibilities and maintain the network's integrity.

Ranking: Validators are ranked based on their performance, including time-to-vote and uptime during epochs. This ranking system ensures that well-performing validators's reputation is appropriately promoted for their benevolent contributions to the network.

Slashing Mechanism: XP.NETWORK employs a slashing mechanism to penalize validators for misconduct. Slashing history and prorated slashing based on offline time enforce these penalties. Slashing discourages validators from engaging in harmful behavior and helps maintain the network's integrity.

Penalties for Underperformance: Underperforming clusters may face penalties while participation is encouraged. It discourages negligence and helps maintain the network's overall quality and reliability.

In summary, XP.NETWORK's NFT Bridge validators operate in a dynamic, inclusive, and secure environment, with mechanisms to incentivize good behavior, penalize bad behavior, and maintain decentralization and fairness in the network's operations. This comprehensive approach ensures the network's resilience and reliability in handling NFT transactions.