How it works

Mining in traditional Proof-of-Work protocols like Bitcoin takes on two related yet distinct functions. First, mining involves electing a leader who is responsible for generating the newest block. The second function consists of verifying the transaction data that exists within the block body. However, there is nothing inherently beneficial about using a single process to complete both of these actions.

Cypherium’s CypherBFT separates these two processes into two distinct blockchains in order to improve the efficiency of both. An election chain chooses Proof-of-Work leaders to write new blocks, while a transaction chain uses HotStuff consensus to verify the transaction data within those blocks. Building off Bitcoin-NG and ByzCoin protocols, the Cypherium blockchain is optimized for both on-chain scalability & permissionless mineability through this hybrid approach to consensus.

CypherBFT Overview

The leader node (crown) proposes a block and waits to be verified by validating nodes.
If 2/3 of the quorum is reached, the block is accepted into the blockchain.
Following its acceptance, the new block is then broadcasted to all nodes.
Honest, verified nodes will then reject all messages from nodes without PoW.

Cypherium achieves unprecedented scalability by electing the voting committee to separate PoW from the transaction verification process, with bandwidth limited only by the capacity of the individual nodes and latency limited only by the propagation time of the network.

Benefits

Scalability with full decentralization

Cypherium adheres to Layer 1 scaling and proof-of-work principles, effectively addressing the blockchain trilemma while upholding Bitcoin’s core value of permissionless decentralization.

Uncompromised security

Cypherium combines the security of both HotStuff consensus and proof-of-work, creating a dual-layered defense that significantly enhances system resilience and makes the network virtually bulletproof.

Chain structure for smart contracts

Cypherium preserves the core blockchain architecture while achieving Layer 1 scalability, enabling seamless smart contract deployment and execution—laying a solid foundation for real-world applications.