ABSTRACT
Blockchain is a decentralized peer-to-peer system with no centralized authority. By definition, this will be a system devoid of any type of corruption from a single point; but it results in some complex problems like reaching a collective decision and scheming mechanisms to get things done in such an environment. Consensus mechanisms solve these problems in blockchain by allowing the nodes to collectively reach an agreement on the transactions without relying on a third party. One such consensus mechanism which is proved to be successful by the famous Bitcoin implementation is proof of work. Though this mechanism is working successfully today, it does not come without major limitations, like heavy computational and energy requirements, which makes it unsuccessful in other real-world applications. The proposed proof of virtue model will be working based on the credit scores and incentives of nodes, rather than the intensive puzzle-solving process. Nodes pledge their entire share of incentive and credit score during block generation, which is redeemed on successful validation. Mining power does not play any role in block generation, which prevents 51% of attacks. A new user has to wait for the initial credit score before participating in the block generation, making the network Sybil resistant. There is no restriction on the minimum time taken for block generation, ensuring performance and scalability.
