Optimistic Democracy: How GenLayer Works

Optimistic Democracy is GenLayer's consensus mechanism, rooted in Condorcet's Jury Theorem (opens in a new tab) (click the link to check out our interactive model), which affirms that collective decision-making becomes more accurate as independent validators vote. The process unfolds in distinct phases:

1. User Submits a Transaction: The user sends a transaction to the GenLayer network.

2. Leader (Validator) Proposes Result: A validator is randomly chosen as the Leader-Validator, processes the transaction, and proposes a result.

3. Validators Recompute: A committee of validators (Validators) re-computes the transaction. If the output aligns (i.e., is “equivalent”) with the Leader-Validator’s result, they approve; otherwise, they deny.

4. Result Accepted: Once a majority approves, the result is provisionally accepted.

5. Can Appeal: If any participant disputes the outcome, they can appeal within the Finality Window by posting a bond.

6. Additional Validation (If Appealed): A new set of validators may be chosen to re-evaluate the transaction. If the appeal is valid, they reward the appellant; if not, the bond is forfeited.

7. Final Decision: After all appeals are resolved, the outcome becomes final.