UPCX is built with a hybrid consensus algorithm that combines DPoS and BFT (Byzantine Fault Tolerance).
DPoS leaves the verification of transactions and the creation of new blocks to a limited number of Witnesses, therefore providing a more scalable consensus mechanism than traditional Proof of Work (PoW) and simple Proof of Stake (PoS) systems. By combining this with the efficiency of the BFT consensus algorithm, scalability can be improved even further.
Even faster Settlement Finality
Compared to other consensus mechanisms like for example the Nakamoto consensus that is used in Bitcoin, BFT-based consensus algorithms typically enable quick settlement finality of transactions, as they require fewer rounds of communication to reach consensus. By combining this with DPoS, a blockchain network with even faster transaction confirmation and even higher throughput can be achieved.
BFT provides resilience against malicious or defective nodes and ensures that the network can reach consensus even in the presence of a certain number of malicious actors. Combining BFT with the DPoS Witness process results in a more secure and reliable network.
DPoS is an environmentally friendly alternative to PoW, as mining does not require huge computational power and energy consumption. Incorporating BFT can further improve efficiency by reducing the number of communication rounds required for consensus building.