MEV in Power DCloud. Resonance Consensus, and the Equitable Reward System

Power DCloud is a revolutionary web3 infrastructure platform designed from scratch to enable the easy and quick creation of truly decentralized applications (dApps). It addresses one of the major challenges in the web3 world — the inability to build fully decentralized dApps without relying on centralized parts or combination of service providers.

Before we delve into why MEV and transaction censorship are impossible in Power DCloud, it’s crucial to understand what MEV is. Maximal Extractable Value (MEV) refers to the maximum value that can be extracted from block production in excess of the standard block reward and gas fees by censoring and/or changing the order of transactions in a block. MEV is a phenomenon most commonly associated with Ethereum, primarily due to its smart contract capabilities.

MEV arises due to the delay between the time a transaction is broadcasted to the network and when it is actually mined into a block. During this period, transactions sit in a pending transaction pool called the mempool, where their contents are visible to everyone. Miners and validators can monitor the mempool and find opportunities to maximize their profits by reordering or censoring transactions. This is often referred to as an “invisible tax” that miners can collect from users.

The possibility of MEV is rooted in the characteristics of blockchain consensus mechanisms. Most consensus mechanisms operate on a principle where each new block is created solely by one producer (leader), who has earned this right in one way or another. In Proof of Work (PoW), this right is won through mining, while in Proof of Stake (PoS), the right to produce a block rotates among stakeholders. The only restriction for this producer is that all transactions included in the block must be valid. This means they can reorder all transactions in any order or even add newly created transactions. In such leader-based consensus mechanisms, the problem of MEV cannot be solved.

Power DCloud uses a different consensus mechanism called Resonance, which doesn’t have a leader. This absence of a leader prevents the possibility of MEV. This is critically important for an infrastructure aiming to become a decentralized cloud like application layer, where all operations in applications must be executed quickly and reliably.

In Power DCloud’s Resonance consensus, there is no single entity with the power to determine the order of transactions. This eliminates the possibility of transaction reordering for personal gain, which is the basis of MEV. Furthermore, the decentralized nature of Power DCloud ensures that no single entity can censor transactions, another critical aspect of MEV.

Moreover, transaction censorship is also impossible in Resonance consensus. In Power DCloud’s infrastructure, all parts of dApps are delivered directly into the browser from the decentralized network without censorship, CDN, and other centralized cloud providers or services. This ensures that all transactions are processed fairly and transparently, without the possibility of censorship.

An interesting aspect of the Resonance consensus is its reward system. In traditional consensus mechanisms with a leader, only the current leader receives the rewards, including transaction fees and block rewards. Naturally, this also includes the benefits of MEV.

However, in Resonance consensus, all nodes work together to reach consensus. Therefore, the rewards from transaction fees and block rewards are shared among all participating nodes. This allows for a more equitable distribution of rewards without clear leaders, ensuring that all nodes are incentivized to participate in the consensus process.

Power DCloud is a groundbreaking platform that offers a truly decentralized infrastructure for building full-stack applications. Its use of Resonance consensus ensures that MEV and transaction censorship, common issues in traditional blockchain consensus mechanisms, are impossible. Furthermore, its equitable reward system ensures that all participating nodes are fairly compensated, promoting active participation and maintaining the health and security of the network. This makes Power DCloud an ideal platform for building secure, reliable, and truly decentralized applications.