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
XYO Layer One is powered by a decentralized network of nodes. All nodes building and running the XYO Layer One Blockchain must comply with the XYO Protocol to achieve the desired functionality.
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 Structure
In XYO Layer One, blocks are a special type of Bound Witness that include the block number, the hash of the chain they belong to, and a list of core elements:
Payloads: Data hashes permanently stored on the blockchain, usually representing transactions, transaction hashes, or schema-compliant producer payloads.
Transactions: A type of Bound Witness with fields for chain, fees, expiration (exp), not-before (nbf), and a script field for standardized contract-like actions such as the elevate script.
Signatures: Cryptographic proofs from addresses that confirm the block’s existence.
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
Sometimes 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.
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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