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site/docs/how-it-works.md

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# How it works
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Leios is a high-throughput overlay protocol designed to enhance blockchain scalabilitysuch as for Cardano’s Ouroborosby managing a structured flow of transactions. Here’s a breakdown of how it operates:
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Leios is a high-throughput overlay protocol designed to enhance blockchain scalabilitysuch as for Cardano’s Ouroborosby managing a structured flow of transactions. Here’s a breakdown of how it operates:
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1. **Creating Input Blocks (IBs)**<br /> Stake pool operators (SPOs), acting as
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validators, bundle transactions into Input Blocks (IBs) every 0.2–2 seconds
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1. **Creating input blocks (IBs)** <br /> Stake pool operators (SPOs), acting as
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validators, bundle transactions into IBs every 0.2–2 seconds
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and broadcast them across the network for parallel processing.
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2. **Proofs of data availability** <br /> Validators check that IBs’ transaction
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data is valid and accessible, a process later confirmed through Endorser
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Blocks (EBs) and voting, ensuring no data is missing or malformed.
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data is valid and accessible, a process later confirmed through endorser
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blocks (EBs) and voting, ensuring no data is missing or malformed.
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3. **Generating Endorser Blocks (EBs)**<br /> EBs aggregate multiple verified
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3. **Generating EBs** <br /> EBs aggregate multiple verified
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IBs, grouping them for validation and proposing their inclusion in the
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blockchain’s final ledger.
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5. **Voting and certification**<br /> Validators vote on EBs using
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stake-weighted BLS signatures to certify their correctness and data
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availability, ensuring only compliant IBs (e.g., valid scripts) proceed.
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availability, ensuring only compliant IBs (eg, valid scripts) proceed.
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6. **Final inclusion in the blockchain**<br /> Certified EBs are referenced by
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a certificate included in a Ranking Block (RB)a Praos-style block minted
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a certificate included in a ranking block (RB)a Praos-style block minted
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every ~20 seconds—finalizing IB transactions on the blockchain while
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maintaining a verifiable, efficient record.
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1. **Propose**:<br />
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- Validators concurrently generate and propose IBs with transaction data,
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kicking off the pipeline instance and targeting frequent output (For example,
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kicking off the pipeline instance and targeting frequent output (for example,
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every 0.2–2 seconds)
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- IBs proposed during this stage are the focus of the current pipeline
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instance.
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- Time is allocated for proposed IBs to spread across the network using a
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freshest-first diffusion strategy, ensuring honest nodes receive them
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within a set delay (e.g., Δ_hdr) despite potential adversarial bursts
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within a set delay (eg, Δ_hdr) despite potential adversarial bursts
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- Duration is crucial for ensuring all honest nodes receive IBs before the
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next stage.
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3. **Link**:<br />
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- Validators create EBs that reference Propose-stage IBs, grouping and
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- Validators create EBs that reference propose-stage IBs, grouping and
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ordering them for validation and eventual blockchain inclusion
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- EBs serve as containers for grouping and ordering IBs.
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- Strengthens overall confirmation of IBs.
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7. **Vote2**:<br />
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- Validators cast final votes for Endorse-stage EBs, certifying them as
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- Validators cast final votes for endorse-stage EBs, certifying them as
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Vote2-certified if they reference a majority of Vote1-certified EBs,
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preparing them for RB inclusion and ledger finality
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- Must reference a majority of Vote1-certified EBs.
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Leios counters adversarial tactics with:
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- **Freshest-first diffusion**: Nodes prioritize downloading the newest IBs and
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- **Freshest-first diffusion**: nodes prioritize downloading the newest IBs and
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EBs (via VRF-based timestamps), limiting delays from malicious message bursts.
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- **Equivocation proofs**: If a validator double-signs (e.g., sends conflicting
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- **Equivocation proofs**: if a validator double-signs (eg, sends conflicting
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EBs), honest nodes detect and propagate proofs, ensuring only one valid block
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per slot is processed, minimizing bandwidth waste.
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## Integration with Ouroboros
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- Leios enhances Ouroboros Praos by overlaying its Ranking Blocks (RBs) with
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- Leios enhances Ouroboros Praos by overlaying its RBs with
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high-throughput IB and EB processing. RBs, minted every ~20 seconds, anchor
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the ledger’s security, while Leios’ pipeline scales transaction capacity
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without altering Praos’ core settlement guarantees.
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This pipelined architecture ensures continuous IB generation, parallel
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processing, and robust confirmation, enabling Leios to achieve near-optimal
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transaction throughput (e.g., (1-δ) of network capacity) while resisting
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adversarial tactics like message bursts and equivocations.
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transaction throughput (eg, (1-δ) of network capacity) while resisting
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adversarial tactics like message bursts and equivocations.

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