Miners compete to bundle the latest valid transactions into a new block.
The winner generates a block.Reward: 0.025 XFL
The block has to be signed by a holder.Reward: 0.075 XFL
Extends the blockchain.
A holder is a Florin user that locks his/her Florin in the desktop application for a certain period of time. Holding secures the blockchain and in return the holder is rewarded Florin. Blocks that are mined by a miner can only be part of the blockchain after a holder has verified them. Holders are anonymous and are chosen randomly. Therefore, for verification purposes, the miner must broadcast its block to the entire network. The holder also transmits the verified block to the entire network. This means that a miner cannot extend the blockchain without sharing the block with the entire network. This solves several problems of a standard Proof of Work blockchain.
Protection against double spending requires 100,000x less hashrate compared to Proof of Work.
Holders can insert transactions into the block they are signing, so miners cannot prevent transactions from ending up in the blockchain.
Miners have a financial motive to minimize empty/small blocks for profit maximization. For holders this motive cannot play a role, they will in fact make sure that each block is as full as possible.
In a standard system, miners can give their block an incorrect time stamp. The block difficulty level is then manipulated to find more blocks for less work. Holders add a second timestamp, rendering manipulation impossible.
Florin's mining algorithm is resistant to the use of specialized mining hardware. As a result, anyone with the Florin desktop application can mine. This ensures decentralization of the network and an even distribution of the mining rewards.