Proof of Trust (PoT) Framework

At the heart of the NEO blockchain lies the Proof of Trust (PoT) mechanism, a revolutionary approach to decentralized trust and consensus.

Core Idea

In the PoT framework, trust is not anchored to a single genesis node but is established directly between transacting parties for each transaction. Each transaction creates its own trust foundation through:

• Bilateral Agreement: The mutual consent and cryptographic signatures of both transacting parties form the fundamental Root of Trust for that specific transaction.
• Transaction Branches: Each transaction establishes its own "branch" with a unique trust basis, independent of a central authority or previous transaction history.
• Dual-Signed Blocks: The validity of each transaction is verified solely through the twin cryptographic signatures of the participating parties, creating an immutable record of their agreement.
• Self-Contained Verification: Rather than relying on network-wide validation, each transaction's integrity is primarily preserved by the direct agreement between participants.

This transaction-centric approach fundamentally shifts the trust model from a hierarchical structure dependent on a single origin point to a web of peer-to-peer trust relationships, each standing on its own merits.

Key Functions of PoT

The PoT mechanism is designed to handle real-world scenarios and maintain trust across the network:

• Root of Trust: Trust grows through a history of valid interactions between nodes. Through a process called cryptogenesis, a transaction begins when an initiating node creates a new block. This block is then verified or rejected by one or more secondary parties, each signing their own corresponding block with their unique cryptographic key. If participating parties' signed blocks match, the transaction is confirmed, and the twin cryptographic signatures form the fundamental Root of Trust for that specific transaction.
• Conflict Resolution: Verification is decentralized and occurs through independent third-party nodes. Instead of relying on longest chains or timestamps, third-party auditors can review a transaction and verify its authenticity by checking the twin-signed blocks. If the transaction is valid, they can stamp it as verified, increasing the trust level of the involved parties. Over time, nodes that accumulate verified transactions with a diverse set of participants will be regarded as more trustworthy within the network.
• Auditability: All blocks are independently verifiable, ensuring transparency and accountability.

Advantages of Proof of Trust

Traditional financial systems often struggle with scaling trust. They move from a point of establishment to more established, reinforcing power structures rather than fostering organic growth. This is an error. A truly decentralized system must allow trust to emerge from null to established as gracefully as it scales from millions to billions. Proof of Trust ensures that every participant can build trust from the ground up.

• Efficiency: PoT avoids resource-heavy computations like mining or staking, making it lightweight and scalable.
• Security: Immutable hashes and trust propagation ensure data integrity and tamper resistance.
• Resilience: Offline transactions and node recovery mechanisms provide fault tolerance.
• Simplicity: A straightforward design focusing on hash verification and trust makes PoT ideal for diverse use cases.

Learn More About NEO

Discover how NEO’s Proof of Trust is reshaping decentralized systems.