Consensus is a method for coming to agreement over a shared state. In order for the state of the blockchain to continue to build and move forward, all nodes in the network must agree and come to consensus. It is the way that the nodes in a decentralized network are able to stay synced with each other. Without consensus for the decentralized network of nodes in a blockchain, there is no way to ensure that the state one node believes is true will be shared by the other nodes.

Each SugarFunge node contains a runtime. The runtime contains the business logic of the chain. It defines what transactions are valid and invalid and determines how the chain's state changes in response to transactions. In SugarFunge the runtime code is compiled to Wasm to facilitate runtime upgrades and becomes part of blockchains storage state. Developers can run the pre-designed SugarFunge Node and configure its genesis block.

In blockchain platforms, consensus mechanisms can be divided into permissionless and permissioned. SugarFunge currently works in PoA as a permissioned blockchain, for private economies. In PoA, rights to generate new blocks are awarded to nodes that have proven their authority to do so. To gain this authority and a right to generate new blocks, a node must pass a preliminary authentication. Proof of Authority Consensus has several notable advantages, such as: high-performance, high transaction rate, and fault tolerance.

The PoA consensus algorithm leverages the value of identities, which means that block validators are not staking coins but their own reputation instead. Therefore, PoA blockchains are secured by the validating nodes that are arbitrarily selected as trustworthy entities.

The Proof of Authority model relies on a limited number of block validators, and this is what makes it a highly scalable system. Blocks and transactions are verified by pre-approved participants, who act as moderators of the system.

  1. Identity must be formally verified on-chain, with a possibility to cross-check the information in a publicly available domain

  2. Eligibility must be difficult to obtain, to make the right to validate the blocks earned and valued.

  3. There must be complete uniformity in the checks and procedures for establishing an authority

The three main conditions that must be fulfilled for a validator to be established are:

Establishing Authority

Consensus Mechanism

Proof of Authority

Proof of Authority (PoA) is a reputation-based consensus algorithm that introduces a practical and efficient solution for blockchain networks (especially the private ones). The term was proposed in 2017 by Ethereum co-founder and former CTO Gavin Wood.


Consensus Roles


Secure the Relay Chain by staking ecosystems governance token, validating proofs from collators and participating in consensus with other validators.


Maintain shards by collecting shard transactions from users and producing proofs for validators.


Secure the Relay Chain by selecting trustworthy validators and staking the token ecosystem governance token.

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