Fuzzychain: An Equitable Consensus Mechanism for Blockchain Networks

TL;DR

Fuzzychain introduces a fuzzy set-based consensus mechanism for blockchain that promotes decentralization and fair stake distribution, addressing centralization issues inherent in traditional Proof of Stake systems.

Contribution

This paper pioneers the application of fuzzy sets to blockchain consensus, offering a novel approach to improve decentralization and fairness in validator selection.

Findings

Fuzzychain matches PoS in functionality.

It ensures a fairer distribution of stakes.

It promotes more inclusive validator selection.

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. Fuzzychain, our proposed solution, introduces the use of fuzzy sets to define stake semantics, promoting decentralised and distributed processing control. This system selects validators based on their degree of membership to the stake fuzzy sets rather than just the size of their stakes. As a pioneer proposal in applying fuzzy sets to blockchain, Fuzzychain aims to rectify PoS's limitations. Our results indicate that Fuzzychain not only matches PoS in functionality but also ensures a fairer distribution of stakes among validators, leading to more inclusive validator selection and a better-distributed network.