PoP Transaction LifeCycle
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:
- A block has transactions that need to be secured
- 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).
- The PoP Miner puts the payload in the OP_RETURN of a Bitcoin transaction.
- 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.
- 500 blocks after the secured block (#23979 - picture is outdated, and was back when it was 250... now it's 500), the reward will be paid out by the coinbase according to the PoP reward protocol. This will be shared amongst the miners.