The Best of Both Worlds: A New Composite Framework Leveraging PoS and PoW for Blockchain Security and Governance

Abstract

This paper describes a new consensus and governance model for the blockchain, with the objective of protecting the blockchain project against higher-level governance issues by design. As governance issues can lead to human problems, they can impact the proper functioning of the blockchain, leading to loss of cryptocurrency value, hard forks, and even failure of the project. We choose several fail-safe mechanisms and processes used and tested in existing Proof-of-Stake and Proof-of-Work implementations in combination with one another in order to create a framework in line with the philosophy of decentralization of the blockchain and safe against the most common technical and governance pitfalls of the field. Additionally, this composite framework offers ideal circumstances for the creation and success of Decentralized Autonomous Organizations by giving their creators more incentive to start new projects, and more involvement with the governance of the underlying blockchain.