How Do Different Consensus Mechanisms Affect the Security of a DON?
A DON's consensus mechanism determines how the independent oracle nodes agree on the final, valid price. A robust mechanism, such as a BFT-style consensus or a simple majority vote on aggregated data, ensures that a few malicious nodes cannot corrupt the final output.
The security depends on the cost to compromise the required number of nodes, which is often tied to the network's staking and slashing mechanism.
Glossar
Independent Oracle Nodes
Attestation ⎊ Independent Oracle Nodes function as critical components within decentralized systems, providing verifiable data feeds essential for the execution of smart contracts and derivative instruments.
Majority Vote
Consensus ⎊ In decentralized finance, a majority vote establishes network consensus, validating transactions or protocol upgrades.
Consensus Mechanisms
Validation ⎊ Consensus mechanisms, within cryptocurrency, establish trust and secure transaction records without a central authority, fundamentally altering traditional financial infrastructure.
Consensus Mechanism
Efficacy ⎊ : The mechanism's efficacy is measured by its ability to achieve agreement on transaction ordering and state transition while maintaining a high degree of decentralization and finality.