DEMOCRATIC CONSENSUS:A COMPARATIVE INTRODUCTION TO THE GRAPHENE BLOCKCHAIN

RYAN R. FOX

RYAN@RYANRFOX.COM

https://linkedin.com/in/ryanrfox

RYAN R. FOX

RYAN@RYANRFOX.COM

A COMPARATIVE INTRODUCTIONTO GRAPHENE USING BITCOIN AS THE REFERENCE

Will compare:• Genesis State• Participants• P2P network• Consensus algorithm• Objects• Security• Performance

What Graphene Offers:• Democratic Consensus (Stake Voting)• High Performance FinTech Platform• Hierarchical Named Account Authorities• Decentralized Exchange• Smart Coins• User Issued Assets• Pegged Assets• Price Feeds• Referral System• Worker Proposals

HISTORY OF GRAPHENE

• Concept and original design: Daniel Larimer (2010)• Formed company: Invictus Innovations, Inc. (2013)• Distributed Autonomous Corporation DAC (2013)• Mined identity: Keyhotee (2013) • Momentum PoW algorithm: ProtoShares (2013)• Predecessor codebase: BitShares 0.9 (2014)

A BRIEF OVERVIEW OF GRAPHENE

• Toolkit for blockchain development• Developed by Cryptonomex, Inc.• Offered under MIT License• Download: https://github.com/cryptonomex/graphene/

• Derived works:• BitShares 2.0 decentralized exchange (2015)• Steem blogchain (2016)

• PeerPlays decentralized gaming (2016)

DISCLAIMER: RYAN R. FOX DOES NOT REPRESENT CRYPTONOMEX, INC. INFORMATION PRESENTED IS HIS OPINION

GRAPHENE KEY DESIGN INITIATIVESLEARN FROM BITCOIN, RIPPLE, LMAX EXCHANGE, ETHEREUM, ET AL.

• Make PoS secure• Focus on speed and scalability• Make security approachable• Build a financial services platform

GENESIS STATENOTHING | EVERYTHING INCLUDING THE KITCHEN SINK

• Initial stakeholders• Consensus parameters• Reserve Pool

• Puzzle• Rewards• Maximum supply

BLOCKCHAIN PARAMETERSFIXED | DYNAMIC

• Tune running code• Proposal and Vote• Elected Committee

• Rigid coded rules• Hard fork

P2P COMMUNICATIONGOSSIP | PUSH

• Rapid propagation• Receive message• Validate• Forward

• Conversation• Query peer inventory• Request deltas• Validate

CONSENSUS ALGORITHMPOW MINER | DPOS WITNESS

Election

Round

Production

Validation

BLOCK REWARDISSUE NEW BITCOIN | TAP RESERVE POOL

• Blocks Probabilistic

• Inflation Predictable

• Blocks Prescriptive• Deterministic• Predictable

• Inflation Fx ( Recycling Rate )

VALUE REPRESENTATIONADDRESS | NAMES ACCOUNTS & BALANCES

Bitcoin:• Identity and value hashed

into a ScriptSig• Distinct, secured by crypto• Difficult to read, compute

• Balance sum UTXO

Graphene:• Identity is Named Account• Name ref. Account objectID

• Distinct, deterministic• Easy to read, compare

• Balance attribute of Account

STRUCTURE: OBJECTS HASH | OBJECT

Bitcoin:• Calculated hash of script• 2 ScriptSig formats

• P2PK• P2SH

• Examples• P2PK=12C5rBJ7Ev3YGBCbJPY6C8nkGhkUTNqfW9

• P2SH=342ftSRCvFHfCeFFBuz4xwbeqnDw6BGUey

Graphene:• Deterministic assigned Object• Space . Type . Instance

• Space: Defines where used• Type: Classification of object• Instance: Unique Space.Type

• Examples• 1.2.x Users• 1.3.x Assets• 1.11.x Operations

STRUCTURE: OBJECT STORAGEHASH | OBJECT

Bitcoin:• Hashes stored in database• 2 ScriptSig formats

• P2PK = 20-bytes• P2SH = 32-bytes

• Full hash transmitted on wire• 20-bytes or 32-bytes

Graphene:• objectID stored in database• (Space.Type.Instance)=8-bytes• (uInt-8.uInt-8.uInt-48)=64-bits

• Only instantID sent on wire• 6-bytes

TRANSACTION OPERATIONSGRAPHENE TRANSACTION

Op

era

tion

ID

Am

oun

t

Ass

et ID

Am

oun

t

Ass

et ID

Mem

o

AmountOp FeeFr

om

(A

ccoun

t ID

)

To (A

ccoun

t ID

)

Extentions

Signed Transaction

Transfer Operation

STRUCTURE: ACCOUNT & AUTHORITY

Graphene:• Account• Authority Type

• Threshold• Authorities

• Key• Weight

• Hierarchy within Accounts• Owner

• Active

Alice 1.2.12

Balances

1.3.0100.00

Authorities

Owner 100%

GHPDk…

Active

CORE

Weight 100%

Threshold

50%Threshold

1.2.12Alice

GHPYnJ…Weight 25%1.2.12

Carol

GHPLzx…Weight 25%1.2.12

Bob

GHPc8n…Weight 25%1.2.12

Doug

Other Account Attributes

MULTI-SIGNATURE TRANSACTIONM:N | HIERARCHICAL THRESHOLD

Bitcoin:• Assemble multisig address

• M validator addresses• N required signatures

• Pay: to new address• Spend: N signatures on Trx

• Must bring keys together• Must present complete Trx

• Compromise one, rekey all

Graphene:• Assign Authorities

• Assign Weight• Set Threshold

• Pay: to existing named account• Spend: Threshold of Authority

• Propose Trx on chain• Add Signature Operation• If Threshold, Trx valid

• Individual can update their keys• Authority tied to Identity

MULTI-SIGNATURE TRANSACTIONREAL WORLD EXAMPLE

Corp 1.2.37

Active50%

GPHb..

40%

GPHc..

30%

GPHd..

20%

CEO

CFO

Accounting

GPHf..

10%Bookkeeper

CFO 1.2.12

Active100%

GPHc..

90%

GPHd..

20%

CFO

CFO2FA

Account 1.2.12

Active80%

GPHd..

60%Accounting

GPHf..

30%Acct2FA

LIGHT WALLET DESIGN

• Separate wallet Authorization from block Validation• Active Key in wallet• Connect via WebSocket to trusted node(s)• Send signed transaction

A COMPARATIVE INTRODUCTIONTO GRAPHENE USING BITCOIN AS THE REFERENCE

Compared:• Genesis State• Participants• P2P network• Consensus algorithm• Objects• Security• Performance

Future Discussion Topics:• Decentralized Exchange• Smart Coins• User Issued Assets• Pegged Assets• Price Feeds• Referral System• Worker Proposals

DEMOCRATIC CONSENSUS:A COMPARATIVE INTRODUCTION TO THE GRAPHENE BLOCKCHAIN

RYAN R. FOX

RYAN@RYANRFOX.COM