Architecture
The Goal of XYOL1
XYO Layer One is a lightweight, scalable blockchain built for data. It uses a variety of features such as Lookback Windows, Step Hashes, and Bound Witness Trees to significantly decrease modern blockchain issues, namely blockchain bloat. Blockchain Bloat is due to modern chains requiring each node to maintain a full historical list of the chain & its transactions, even as it grows. This means each new block, transaction, and data-heavy trends (NFTs or massive DeFi trading, for example) causes the chain to get "bloated" — slowed down by the chain's size. Worst of all, as it continues to grow, the issue gets significantly worse. Only new, redesigned blockchains have the chance to start from scratch with a blank slate, but ultimately, if the nodes require the same level of historical tracking, the new chain will head towards the same fate.
XYO aims to completely redesign blockchain for data, and most importantly, eradicate, bloat.
Node Structure
As with most blockchains, XYO Layer One is powered by a decentralized network of nodes that work together to construct, validate, and optimize the blockchain. All Nodes building and running the XYO Layer One Blockchain must comply with the XYO Protocol to achieve the desired functionality.
The architecture consists of three core node types:
Block Producer Nodes
Validator Nodes
Efficiency Nodes
Block Producer Nodes are responsible for producing blocks, Validator Nodes check for block compliance, and Efficiency Nodes are exactly what they're named: nodes designed to improve efficiency for other nodes and the blockchain overall.
Block Producer Node
Block Producer Nodes are responsible for producing blocks from the pending transactions in a shared transaction queue.
Block Structure
In XYO Layer One, blocks are a specific type of Bound Witness. Block Bound Witnesses include several unique fields, such as the number of the block itself and the hash of the chain it exists on. As a Bound Witness, an XYO Layer One Block also contains a list of each of the following: Payloads, Transactions, and Signatures.
Payloads are data hashes that will be permanently included in the XYO Layer One Blockchain. This is also known as "Elevation". Paylods must be validated and normally represent a Transaction, a hash from within a Transaction, or schema-compliant payload added directly by the block producer, known as a "Producer Payload".
Transactions are an additional type of Bound Witness, containing fields such as chain, fees, exp (or "Expiration"), and nbf (or "Not Before"). Transactions also have a specific script field that designates smart contract-like scripts to be executed. Any script in this field must be a standardized script for the XYO Layer One Blockchain, such as the elevate script that designates a hash to be elevated to the next level.
Signatures are addresses that cryptographically sign the block, representing addresses confirming block existence.
Producer Payloads
Producer payloads are protocol-level operations formatted under schemas such as network.xyo.boundwitness and generated by block producers. They include transfers, claims, staking intents, and protocol votes, and must pass first-order validation before being included in a block. This means all payloads are present, match their hashes, and pass full checks. Block producers also use network.xyo.chain.vote to participate in protocol updates.
Transaction Fees
Transaction Fees are any funds provided by the client when submitting a transaction to be included in a block.
Base Fee
The Base Fee is XL1 required for a transaction to enter the pending transaction pool. This fee is normally burned. However, if the transaction was invalid, it can be claimed by the entity who received the invalid transaction.
Staking
Staking with $XYO in the XYO Layer One Blockchain is integral to securing the blockchain, and users have more than one option for participating in the staking ecosystem.
Node Staking
There are two types of Node Staking: Block Producer Node and Validator Node Staking. Staking a Node should only ever be done by the Node owner, and not a multitude of parties. Node Staking includes risk of slashing, but gives returns higher rewards than System, or "Nodeless", Staking.
System Staking
Also referred to as "Nodeless" Staking, this version allows a user to stake the system itself, rather than an individual node. System Stakers earn rewards from the Step Reward Pool. By locking up XYO to System Stake, the "risk" a user incurs stems from the inability to quickly move the stake, but this stake cannot be slashed inside the network itself.
Staking Rules
Staking actions include adding, removing, and withdrawing stake. Once added, stake is active immediately, but after removal it remains slashable until the cooldown period passes and withdrawal is complete. The cooldown is measured in blocks and prevents stakers from escaping penalties by withdrawing too quickly.
Slashing
Node Stakers can be penalized if their node submits false data or disrupts consensus. In a slashing event, stake is deducted starting from the oldest deposits until the required amount is reached. Slashing protects network integrity by discouraging dishonest or malicious behavior.
Rewards
XYO Layer One implements two primary reward mechanisms to incentivize participation: Block Rewards and Step Rewards. While both reward systems serve complementary roles, they differ in distribution timing, frequency, and intent.
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