A Fair Blockchain Based on Proof of Credit

Abstract

Proof of work and proof of stake (PoS) are commonly used in the current permissionless blockchains. These consensus protocols can be abstracted into a random process of selecting a node for accounting in a blockchain ledger. However, they are generally faced with resource consumption and vulnerability issues. We present proof of credit (PoC), a fair blockchain protocol based on the PoC blockchain protocol. It is a special PoS protocol where the credit is a special kind of stake quantifying whether the node’s activity is beneficial to the system. Any nodes cannot change their credits arbitrarily. We demonstrate that our PoC protocol satisfies the security properties, including common prefix, chain quality, and chain growth, under the assumption that the total credit the honest held is majority. In addition, we propose a self-audit mechanism and a hybrid incentive mechanism to enhance the security and stability. Finally, we explain the method by which the PoC protocol resists the double-spending attacks and the selfish mining attacks.