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Introduction

Bitgold Network is an EVM-compatible Layer 1 designed for the global asset network. It combines a Proof of Staked Authority (PoSA) consensus with fast finality, low fees, on-chain staking, and on-chain governance, while keeping full compatibility with Ethereum smart contracts and tooling.

Consensus: Proof of Staked Authority

Bitgold relies on a system of elected validators under Proof of Staked Authority (PoSA). PoSA combines Delegated Proof of Stake (DPoS) with Proof of Authority (PoA):

  1. Blocks are produced by a limited set of validators.
  2. Validators take turns producing blocks in a PoA manner.
  3. The validator set is elected in and out through stake-based governance.

This design supports short block times and low fees while keeping validator membership accountable to BTG holders. Double-sign detection, malicious-vote detection, and other slashing logic protect security, stability, and chain finality.

The active validator set is split into Cabinet and Candidate roles. Cabinet validators have the highest stake and the greatest chance of producing blocks; Candidates are elected with a lower probability and can be slashed for downtime in the same way. Validators that are not online when it is their turn to produce a block are penalized.

Fast finality

Finality matters because a finalized block cannot be reverted. Bitgold implements fast finality, first specified in BEP-126: once two-thirds of the validator set votes for a block, that block becomes economically final. If fast-finality votes are insufficient, the chain falls back to probabilistic finality, where additional confirmations increase safety.

For applications that need guaranteed finality, use the finalized block tag in JSON-RPC calls such as eth_getBlockByNumber to query only finalized blocks.

Security

PoSA networks remain secure as long as more than two-thirds of the validator set is honest. Bitgold adds slashing to penalize Byzantine validators for double signing, malicious fast-finality voting, or prolonged downtime. Slashing exposes misbehavior quickly and makes attacks such as clone attacks economically unappealing.

Detailed rules are maintained in Slashing.

Rewards

Validators are rewarded with the transaction fees collected in each block. BTG is not inflationary: there is no block subsidy, and the gas fee is the primary validator reward. A portion of fees is shared with delegators according to each validator’s commission rate.

Because validators take turns producing blocks with roughly equal probability, long-running validators earn comparable rewards over time. Delegators choose validators based on performance, commission, and risk; this spreads stake across the set instead of concentrating it in a single validator.

Staking and governance

Staking is the mechanism that determines validator eligibility:

  1. BTG holders, including validators, bond tokens into stake.
  2. Holders can delegate their BTG to any validator or candidate.
  3. Validators are ranked by total bonded stake; the highest-ranked validators form the active set.
  4. Validators share part of their block reward with delegators.
  5. Validators can be slashed for double signing, malicious voting, or downtime.
  6. An unbonding period keeps stake bonded long enough for misbehavior to be detected and penalized.

Staking operations are covered in the Staking section, and the governance process is described under Governance.