Consensus Mechanism: The Reputation System

Source: https://witnet.io/about

The consensus mechanism is based on a reputation system. Instead of a Proof of Work (PoW) or Proof of Stake (PoS), a node is probabilistically chosen depending on the reputation score it has attained resolving data requests.

As a result, any node has a chance to earn WIT tokens, without needing to stake large amounts of money, or buy expensive hardware, as in the case of PoW/PoS.

Witnet features an adaptation of the Byzantine Fault Tolerance algorithm. Nodes, through a cryptographic sortition scheme, secretly compute their eligibility for performing tasks (mining, witnessing data requests), i.e. they compute their Proof of Eligibility (PoE). Such proof is later verified by the rest of the nodes in the network. Among those block reporters elected, the block proposed by the peer with higher reputation is accepted (if valid).

More details about the importance of the Cryptographic sortition can be found here.

Please refer to sections 4 and 5 of the Whitepaper for more information regarding the reputation system.