DAG Structure

Xylume TestNet uses a Directed Acyclic Graph (DAG) instead of a traditional blockchain, allowing for simultaneous, secure transaction validation. This design eliminates bottlenecks from sequential block production, enabling faster processing and better scalability as the network grows.

The network follows a parent-child relationship model, where transactions link together hierarchically. Each parent's unspent output, or 'juice', is used by the child transactions, ensuring efficient validation and eliminating redundant steps. This structure enhances network scalability and performance.

PoUTX

Xylume TestNet implements Proof of Unspent Transaction eXploration (PoUTX) as its validation mechanism and 'mining'. This approach uses Unspent Transaction Outputs (UTXO) to verify transactions. In PoUTX, miners find valid transactions with sufficient unspent outputs (juice) for the new transaction and submit them to the node, which validates the authenticity of the mined job.

This ensures that no funds are double-spent, a series of valid transactions is formed representing the flow of the coins, and that the transactions are legitimate, thereby maintaining network security. PoUTX also facilitates a lightweight state dependency system, where each transaction only relies on the state of its direct parent transaction, making the network more efficient and resistant to attacks.

Attack Resistance

Xylume TestNet is highly resistant to 51% attacks, Sybil attacks, and double-spending. Its DAG structure and PoUTX consensus ensure no single entity can control the network, while parent-child validation prevents invalid transactions from being accepted.

Security is enforced through multiple mechanisms:
  • DAG-based validation prevents network reorganization,
  • the juice rule blocks conflicting transactions,
  • a dynamic gas model discourages spam,
  • strict peer validation makes Sybil attacks harder to execute.

Decentralization

Xylume TestNet achieves decentralization through a P2P node system, where nodes communicate via socket-based connections. New nodes initiate connections by listening to active nodes, which connect back to establish a two-way link. Nodes are discovered through an official, auto-maintained list that ensures only healthy nodes participate, optimizing network performance.

The network operates on distributed consensus, with all nodes validating transactions via the PoUTX mechanism. Each mined transaction is broadcasted and revalidated by connected nodes. If a majority confirm its validity, it is permanently added to the source node’s DAG, ensuring security and decentralization.

Security

Xylume TestNet leverages cryptographic techniques to ensure the integrity of transactions. Each transaction is digitally signed using the sender's private key, ensuring authenticity. Furthermore, PoUTX prevents double-spending by requiring proof of unspent outputs before any new transaction can be added to the network.

To enhance security and efficiency, Xylume TestNet employs BLAKE2b as its primary hashing algorithm for its high-speed performance, strong cryptographic resistance, and reduced computational overhead compared to other cryptographic hash functions like SHA-256.

Gas and Tokenomics

Xylume TestNet incorporates a dynamic gas model to encourage efficient use of the network and fairly reward nodes and miners for their participation in the validation process. Each transaction consumes gas, which is paid in native Xylume (XYL) tokens.

The base gas is calculated according to the network load:
  • Base fee in XYL = 0.000069 + (0.000069 * (Current incoming TPS / 10000))
The incoming TPS is calculated as the number of pending transactions divided by the time difference between the oldest and newest pending transactions.

The initial supply of XYL is 6,942,340 XYL. The smallest unit of the native token is wxei, which is equal to 1e-18 of a XYL, thus the decimals of the XYL token are 18, similar to that of Ether.