Peer vs Block Producer

The Ledgerium Blockchain is a peer-to-peer decentralized network run by authorized systems, so it is Proof of Authority blockchain. Node is essentially a server with a unique identity on the network. The peer node might be an organisation in a consortium of banks. Each organisation runs one or more blockchain node to host a local copy of the ledger.

Types of Nodes

Peer

The Ledgerium Blockchain network contains a distributed, cryptographically secure ledger that maintains the history of immutable transactions on the network. Each peer node stores a global state of the ledger locally. The Ledgerium protocol defines the rules of the endorsement process. In the process, every peer can independently verify the transaction history without any external authority. Peer, however, can't write transactions on the blockchain.

Block Producer/Validator

Block Producer has a critical role to play on the Ledgerium Blockchain. It produces or adds blocks to the blockchain. Block Producer executes 'sending' XLG across accounts or instant smart contract transactions or private transactions. Block producer maintains the pool of transactions, in which it gathers transactions from various DApps, combines them in a block and publishes it on the blockchain. There is a proposal process for becoming a Block Producer from a peer.

Role of Block Producers

A block producer is an independent individual who stakes their XLG and is entrusted to maintain a node on the network that validates transactions and commits new blocks to the blockchain. Block producers receive rewards in XLG for provisioning blocks.

Responsibilities for Block Producers

A block producer has both technical and social responsibilities both of which are important for the health, performance and security of the network.

Technical Responsibilities

  • Ensure node is secure by practising safe key management

  • Maintain node requisite software version

  • Monitor node to ensure its availability and participation in consensus

  • Monitor network in general and communicate with other block producers, network entities if problems arise.

Social Responsibilities

  • Participate in on-chain Governance of the network

Block Producer's revenue streams

Block rewards: The block producer will get block rewards in XLGs to produce the block.

Transaction fees: The block producer will earn XLGs as fee payment of executing transactions from DApp on the Ledgerium Blockchain.

Prerequisites

To participate in Governance, you must:

  • Be voted in as a Block Producer

  • Have the Ledgerium Wallet installed

  • Import your private key associated with your node to the wallet