PoP Transaction LifeCycle

See: Main_Page, HowTo_run_PoP_Miner

Overview

A PoP Transaction has several stages in its life cycle.

A single PoP transaction will:

• Endorse (secure) a VBK block
• Have its 80-byte payload embedded within the OP_RETURN (or through alternative means) of a BTC transaction
• Be rewarded 500 blocks after the secured block

One VBK block can:

• Contain many PoP transactions
• Be secured by many PoP transactions
• Reward many PoP transactions

Each VBK block likely plays three different roles:

• Secured Block – The block that is secured by having its block header stored in one or more Bitcoin OP_Return transactions by one or more PoP miners
• Endorsing Block(s) – The block containing the PoP Transactions that contain the block header of the Secured Block in Bitcoin
• Reward Block – The block which pays out rewards to the PoP miners who secured a particular VeriBlock block

These are relative terms. Each individual block will be secured by a future block, will endorse previous blocks, and will payout PoP rewards for PoP miners who secured a previous block.

The picture above shows:

1. A block has transactions that need to be secured
2. The PoP Miner picks that most recent block and aggregates its information into an 80-byte PoP Payload. The header will be the header of the “Secured Block” (say block #23729).
3. The PoP Miner puts the payload in the OP_RETURN of a Bitcoin transaction.
4. The PoP Miner creates a PoP Transaction that will be submitted to future VBK blocks (say block #23731). This transaction both points to the Bitcoin transaction and the prior secured block.
5. 250 blocks after the secured block (#23979), the reward will be paid out by the coinbase according to the PoP reward protocol. This will be shared amongst the miners.