QuStream Documentation

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Consensus Mechanism (PoS) ​

Overview ​

QuStream operates on a Proof-of-Stake (PoS) consensus mechanism, ensuring secure, decentralized, and energy-efficient blockchain validation. Validator Nodes are responsible for processing transactions, securing the network, and maintaining consensus, while Encryption Nodes handle quantum-safe key generation and storage sharding.

Unlike traditional PoS systems that focus solely on transaction validation, QuStream introduces a dual-node architecture, separating blockchain validation from encryption processing, creating a scalable and efficient infrastructure.

Validator Nodes & Staking ​

  • Validators must stake 200,000 QST to participate in consensus.
  • Delegated Staking is Supported – Users can delegate QST to a validator instead of running their own node.
  • Validators earn staking rewards from block validation + a portion of transaction fees.
  • A 0-100% commission is applied to rewards earned through delegation. Each node owner is allowed to pick his own commision.

Learn More → Running a Validator Node

Rotation & Fair Selection Mechanism ​

  • QuStream uses a rotating selection process to distribute validation duties fairly across validators.
  • The selection process favors decentralization, preventing a few large validators from dominating consensus.
  • This rotation ensures network resilience and prevents validator centralization.

Validator & Encryption Node Separation ​

  • Validator Nodes → Handle PoS staking, transaction validation, and smart contract execution.
  • Encryption Nodes → Manage key generation, secure encryption processing, and sharded storage.
  • This separation ensures:
    • Faster blockchain performance, as encryption processing does not slow transaction validation.
    • Higher security, since encryption key management remains independent from validator staking.
    • More scalability, allowing both networks to grow independently.

Learn More → Encryption Nodes

Delegated Staking Model ​

  • Users who don’t want to run a full node can delegate their QST to a validator and earn rewards.
  • Validators set their commission rate at a fixed 7%, meaning they take 7% of rewards from delegated stakes.
  • Delegators receive the remaining 93% of staking rewards, proportional to their stake.

🔹 Example:
If a validator earns 1000 QST in rewards, and they have delegators staking with them, the rewards are distributed as:
✅ Validator earns 70 QST (7% commission).
✅ Delegators collectively receive 930 QST (93% of total rewards).

Learn More → Staking & Delegation

Slashing & Security Measures ​

To prevent malicious activity:

  • Validators can be slashed for fraudulent behavior, such as attempting to alter transactions.
  • Encryption Nodes are monitored, ensuring that they correctly distribute encryption keys and sharded data.
  • Security incentives encourage honest participation, ensuring validators act in the network’s best interest.

Why This PoS Model Works for QuStream? ​

✔ Encourages network participation – Users who don’t want to run a node can still stake and earn.
✔ Supports decentralization – No single entity needs an extreme amount of QST to participate.
✔ Gives node operators flexibility – Validators can earn additional rewards from delegated stakes.
✔ Ensures scalability – Separating validation from encryption processing increases blockchain efficiency.

Conclusion ​

QuStream’s Proof-of-Stake (PoS) consensus mechanism ensures decentralization, security, and fair participation. Whether as a validator node operator or a delegator, QST holders can participate in securing the network and earning rewards.

Next Steps ​