Proof-of-Proof is a novel consensus protocol invented by VeriBlock, Inc. which allows any blockchain (including sidechains and permissioned ledgers) to inherit the full security of Bitcoin in a truly decentralized, trustless, transparent, and permissionless (DTTP) manner.
It does so by gamifying the publication of data representing a blockchain’s present state to Bitcoin (directly or indirectly) such that any user can participate and receive compensation for enabling blockchains to inherit Bitcoin’s security.
The VeriBlock Blockchain is a concrete implementation of PoP, which extends Bitcoin’s security to other blockchains in the most secure, economical, and easy-to-implement manner possible, further developing upon the DTTP ethos of PoP. It acts as a fully DTTP security adapter/aggregation layer between other blockchains and Bitcoin.
Every time a new blockchain joins the VeriBlock ecosystem or an existing one increases in value, all other blockchains in the VeriBlock ecosystem benefit by enjoying the additional security and decentralization that results from VeriBlock’s increased network effect.
The VeriBlock Blockchain and PoP are truly DTTP, adhering to the same attributes which made Bitcoin the most powerful immutable proof engine the world has ever seen, and the foundational layer of a radically transformed global economy.
VeriBlock addresses two major problems: alternate blockchain (or altchain) security, and Bitcoin scalability. By securing a diverse ecosystem of blockchains which each specialize in solving particular problems, VeriBlock encourages widespread adoption of these blockchains, causing an exodus of transactions from Bitcoin to these more specialized blockchains while still driving value from the success of these blockchains back to Bitcoin.
Bitcoin, the golden standard of security, has more than 40 times the thermos-equivalent computational power to the world’s fastest supercomputer. As of July 2017, a successful attack on Bitcoin would require a minimum of 600 MWh of electricity and over $1B of specialized computational infrastructure.
Once a given block on a VeriBlock-secured blockchain reaches full security (after a period of time dependent on the aggression of the weighting algorithm employed by the blockchain and the absence of conflicting data, which is seen in real time), reversing consensus on that block would require forking Bitcoin, VeriBlock, and the VeriBlock-secured blockchain simultaneously.
VeriBlock is a complementary technology to sidechains/Drivechain. Provided a sufficient security budget, a sidechain can adopt VeriBlock consensus technology just like any other public blockchain.
The VeriBlock blockchain provides an aggregation layer of proof, and its token provides a means for paying the decentralized VeriBlock PoW and PoP miners in a way controlled completely by the VeriBlock blockchain protocol. As such, the VeriBlock token serves as a price discovery mechanism that allows the efficient allocation of the scare resource of proof, allowing all blockchains to inherit Bitcoin’s PoW security.
The VeriBlock blockchain is mined in two different ways: PoW and PoP mining. PoW miners are responsible for creating the blocks, providing the blockchain with intermediate consensus, and providing blockchains inheriting security through VeriBlock with a PoW-powered first line of defense.
PoP miners are responsible for publishing a representation of the current state of the VeriBlock blockchain (and by proxy, all blockchains secured by VeriBlock) to Bitcoin in a fully DTTP manner.
In addition to PoP miners who publish a representation of present blockchain state up to VeriBlock (and indirectly, Bitcoin), blockchains secured by VeriBlock also need to have an intermediate consensus algorithm which allows for the creation and short-term agreement on blocks, which can be implemented as Proof-of-Work, Proof-of-Stake, Proof-of-Capacity, a hybrid of several of the above, etc.
The use of Proof-of-Proof through the VeriBlock ecosystem enables any blockchain to inherit the consensus security of Bitcoin in a way which makes consensus attacks (rewriting agreed-upon history to perform attacks like double-spends) far harder to execute. This additional security significantly increases trust, allowing the blockchain’s token to be listed on more exchanges, reduce confirmation waiting times for existing exchanges, and participate in fiat markets, due to the drastically reduced risk of consensus-related token theft. Consumers now have more confidence in the blockchain, and the project’s developers can focus on creating a rich feature profile rather than inventing and implementing exotic and untested security mechanisms.
Due to the proliferation of secure blockchains, exchanges and merchants can list tokens from more blockchains while generally requiring fewer confirmations, due to their dramatically reduced risk of token double-spends.
PoP miners securing the VeriBlock blockchain spend Bitcoin to publish information regarding VeriBlock’s present state, thereby increasing buy pressure for the Bitcoin token while paying Bitcoin miners higher fees. VeriBlock also gives Bitcoin’s PoW an eco-friendly image because it’s PoW can be reused to secure a limitless number of blockchains. Finally, VeriBlock provides Bitcoin with an alternate scaling means for Bitcoin.
Because of increased alternate blockchain security, users are more confident in adopting specialized chains whose feature profiles more closely fit their needs. This exodus of transactions from Bitcoin provides an alternative scaling mechanism by allowing feature specialization on other blockchains while still benefiting the value of the Bitcoin token (due to token buy pressure flowing up from PoP miners securing these alternate blockchains).
Bitcoin wallet providers (including those who offer mobile and lightweight wallets) can add PoP mining data to outgoing transactions and receive compensation for doing so, allowing them to generate profit from their wallet while simultaneously reducing the effective transaction fees their users pay.