Saito is a Paradigm Shift in Blockchain

Saito approaches blockchain security from an entirely new perspective: given that all forms of difficulty are reducible to economics, why not skip “mining” and “staking” and just find a way to guarantee that producing blocks is always expensive? Can we create a mechanism where honest nodes produce blocks for free but attackers are forced to burn money to do the same?

Solving this puzzle requires answering fundamental questions on the economic level that other blockchains cannot address: what is the value of work to the network; and how can we drive the price for different forms of it down to market levels? The strength of the Saito solution is shown by the way its answers elegantly solve “foundational” problems like the 51% attack and the “scalability trilemma”.

How Saito Works

Each Transaction's Path is Signed

  • We know who did work routing
  • Sybilling is eliminated

Saito adds cryptographic signatures to the network layer. Each transaction contains an unforgeable record of the path it takes into the network. This allows u to measure the "routing work" provided by the nodes in the network.

This routing history provides information about network topology that allows Saito to pay network nodes, and incentivize network optimization:

  • Pointless, unhelpful and circular routing are identified
  • The value of transactions to nodes can depend on path length or network depth
  • The network can optimise:
    • Unhelpful nodes are removed from tx paths.
    • Nodes are strongly motivated to service users.
    • Routing efficiency and speed are rewarded.

Block Producers Compete to Collect Fees

  • A natural round robin is created
  • Cheating costs money

To produce a block, nodes must burn tokens.

The amount of tokens required decreases with time.

Nodes race to collect enough transaction fees, routing 'work' to match this cost.

Consensus rules specify that nodes cannot use "routing work" from transactions that do not include them on their routing path.

This process gives Saito unique properties:

  • Orpaned work - transactions that are not included in a block, can be reused.
    There is no 51% attack
  • Nodes use all their transactions to create a block. Block production forms a natural round robin with participants weighted by usefulness.
  • Winning the race to create a block requires either being more useful to the network, or subsidising block production with fees.
  • Because 'work' (legitimate transaction fees) does not expire on block creation, censorship attacks are exponentially expensive.

A Lottery Pays the Network

  • The lottery pays nodes in proportion to work done
  • Randomness and competition provide security

Each block contains a proof-of-work challenge in the form of its block hash. If a miner finds a solution to this challenge it broadcasts it as part of a normal Saito transaction. We call the solution the "golden ticket".

If one valid golden ticket is included in the very next block the network will split the block reward for the previous block between the miner that found the solution and a lucky routing node. The winning routing node is selected using a random variable included in the miner solution.

Nodes that routed transactions in the block gets lottery tickets in proporton to the transaction fees and the node's place in the transaction's path to the block producer. (The number of tickets halves with each hop through the network.)

The result is:

  • Infrastructure is incentivized to move to the edges of the network.
    The more you route, the more you are paid. The closer you are to users the more profitable routing for them becomes.
  • Useless hops are penalized, helpful hops are incentivized.
    Every extra node between you and the user reduces yor profitablility. If a hop can be avoided, it will.
  • Transaction hoarding is costly.
  • Nodes are rewarded in proportion to the value they provide to the network.
  • Data is Pruned and Recycled

    • Dust and junk fall off the chain - Valuable data stays
    • Chain space has a market price

    The Saito chain has a fixed length. When a new block is created, the oldest block is deleted.

    Valuable transactions are automatically rebroadcast.

    Rebroadcast transactions pay fees to be included at the front of the chain.

    • Space on chain has a market price.
    • Cheaper storage makes chain space cheaper.
    • Dust and irrelevant or unimportant tranactions are deleted from the chain.
    Check out our FAQ for more information.
    Find out how Saito's eliminates the 51% and other attacks in our docs on github.


    Saito Arcade

    Play Games on Testnet

    Browning Testnet is Live

    The easiest, and most fun, way to get started is to come and play a game.

    All our boardgames are fully featured and fully on chain. Head over, and find a game, or challenge a friend.

    Saito creates an in-browser wallet suitable for mobile and desktop, and our token faucet will get you started. No metamask, no worries.


    The Saito Social - Podcast

    Latest Episodes

    Saito has a remarkable team that has inspired us...

    Roger Lim, Founding Partner, NEO Global Capital

    Pay attention to these guys...

    Li Xiaolai, Founder, INBlockchain

    Interesting idea. Are you planning to fork Bitcoin and add this?

    Bobby Lee, Founder BTCC - Board of Directors Bitcoin Foundation

    Want to go deeper?

    Near Protocol Whiteboard Series

    A Deep Dive into
    Blockchain and Saito

    Friend of the project Illia Polosukhin from Near Protocol came into the Saitoplex to talk to David and Richard about Saito and how it works.

    This is a long conversation that goes deep into blockchain scaling, security and design.

    Saito on Twitter