Fuzzychain: An equitable consensus mechanism for blockchain networks

Abstract

Blockchain technology has become a trusted method for establishing secure and transparent transactions through a distributed, encrypted network. The operation of blockchain is governed by consensus algorithms, among which Proof of Stake (PoS) is popular yet has its drawbacks, notably the potential for centralising power in nodes with larger stakes or higher rewards. Our proposed novel solution, Fuzzychain, leverages fuzzy sets to define stake semantics, introducing a degree of softness in validator selection. This approach mitigates rigid threshold-based decision-making by allowing gradual transitions between stake levels, reducing sharp disparities among validators. By incorporating this enhanced stake evaluation, Fuzzychain promotes a more adaptive and distributed selection process, ensuring a fairer and more inclusive blockchain network. A thorough assessment of a real-time multi-agent blockchain system to examine validator selection and reduce inequality, promoting a more equitable distribution of stakes among validators compared to other consensus mechanisms. This fosters a more inclusive selection process and a more equitably distributed network.