📃PPoS

ME Network uses Permitted Proof of Stake (PPoS), meaning the creation of Validator Nodes requires permission.

Unlike Ethereum's standard PoS mechanism, PPoS (Permitted Proof of Stake) only allows genuine and compliant Validators to join and contribute to maintaining network consensus. This ensures that there are no anonymous or fraudulent block producers within the network.

We agree with Vitalik Buterin:

The “one-sentence philosophy” of proof of stake is thus not “security comes from burning energy”, but rather “security comes from putting up economic value-at-loss"[1]

Hence, in the underlying design, becoming a Validator Node in the ME Network entails the risk of network penalties. While nodes can earn profits exceeding their costs, there are also preventive mechanisms in place to ensure the network's stability and security.

Also as Vitalik Buterin said, "Theoretically, a majority collusion of Validators may take over a proof of stake chain, and start acting maliciously." The cost of validating nodes colluding to complete a 51% attack is high, but some nodes may deliberately try.

Therefore, on top of the underlying mechanisms, we have introduced a "real identity" mechanism in the ME Network. This means that to become a Validator Node in the ME Network, individuals or entities need to voluntarily disclose their identity to the ME DAO. They undergo a strict Know Your Customer (KYC) process and meet the set minimum requirements in exchange for the right to validate transactions and generate blocks. If all nodes meet these basic criteria, in each round of the consensus process, Validator Nodes can ensure honesty. Through the combination of underlying design and the real identity mechanism, any malicious behavior by nodes can be prevented from the outset, ensuring the security and sustainable development of the entire network.

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[1] Vitalik Buterin. A Proof of Stake Design Philosophy. 2016