This FAQ answers the most common questions about eCash's unique Avalanche protocol.
What’s Avalanche on eCash?
Avalanche on eCash is a rapid coordination layer that works alongside eCash’s sha256 proof-of-work to finalize transactions near-instantly. Instead of waiting for multiple block confirmations, nodes use a lightweight voting process to quickly agree on which transactions are valid and can be included in a future block. The Avalanche layer doesn’t replace Nakamoto consensus, but complements it.
Is eCash’s Avalanche integration related to AVAX?
No, eCash is its own blockchain using its own Avalanche implementation. It is important to differentiate the Avalanche protocol from the cryptocurrency project known as "Avalanche" or "AVAX". Avalanche on eCash is completely separate and distinct from the Avalanche (AVAX) project. They have no connection, other than both implementing a version of the protocol described in the Avalanche whitepaper.
What are the requirements to use Avalanche on eCash?
To use Avalanche, you just need to run your eCash node. Avalanche is enabled by default. If you want to turn it off, you can use “avalanche=0” in your node’s config file. If Avalanche is active but you don’t have a valid stake proof, your node will be able to poll the Avalanche layer but won’t participate in the voting.
What are the requirements to join the Avalanche quorum for consensus formation on eCash?
You need to sign a stake proof of at least 100M XEC to go along with your default eCash node software. The coins don’t need to be “staked” or locked, but for the stake proof to be valid, they need to be at least 100M each and stay unmoved for 2016 blocks, which is about 2 weeks. After that waiting period, your stake proof will be “matured” and your node will join the Avalanche quorum. Once you move your coins, the stake proof will be invalid. If you don’t have a valid stake proof, your node will still be able to poll the Avalanche layer but not participate in the voting or earn staking rewards anymore.
How do I create stake proofs?
To create a stake proof, an easy way is to use the Electrum ABC wallet. You can also use the command line proof manager. You can already create a stake proof even if the coins are not yet matured. If your node is synced up with the network and your coins are matured, the stake proof will be regarded as valid automatically. Please make sure you comply with all requirements, including coin maturity and the minimum coin amount per UTXO (100M XEC). Here is a complete staking guide with all the necessary details.
How are the staking rewards calculated and where are they coming from?
The staking reward winner is determined by generating a ranking value for each Proof in the quorum, and then selecting the smallest as the winner for that block. This ranking value is generated by hashing the Proof ID together with the previous block hash, and then scaling the result appropriately based on the staked amount. This exponential distribution is inspired by https://stackoverflow.com/a/30226926.
If I have many stakes instead of one single stake in the proof with the same amount of coins, will it lower my chance of winning the reward?
No, the expected rewards are the same in either case. The probability of winning staking rewards is directly proportional to the total staked amount. The benefit of having multiple stakes is that if you move some of them, you can build a new proof with the remaining ones without having to wait for them to mature again. Other than that, there’s no difference.
Can my staked coins be slashed?
There is no custody, coin lock-up, or slashing involved in eCash’s Avalanche layer. Your coins remain in your custody and cannot be taken away. Stake proofs are signatures proving that you own a certain amount of XEC. Note that once you move your coins, your stake proof will turn invalid and your node will not actively participate in the Avalanche consensus votes anymore. Other than that, nothing happens as your coins remain solely under your control.
How is the Avalanche layer secured? Can it cause problems for the underlying system?
The Avalanche layer is secured by millions of dollars worth of XEC. To successfully execute a 51% attack or double-spend attack on eCash, a bad actor would need a supermajority of the stake along with at least 51% of mining power, making such an attack scenario extremely costly. Trying to buy that much XEC on the open market would also drive up the price quickly and multiply the cost of the attack even further. A preparation to attack like this would also be visible to everyone, where network participants can act accordingly. Even if the Avalanche layer were to be disrupted or go offline for any reason, the underlying PoW chain would remain fully operational, secure, and authoritative.
What happens if the Avalanche network disagrees with Nakamoto consensus?
Avalanche in general, does not override proof-of-work but runs alongside it. If there’s ever a conflict on the Avalanche layer with no means of reconciliation, the underlying PoW chain rules still decide the final state. The Avalanche layer does restrict certain attack vectors, such as double spends or 51% attacks. Meaning, Avalanche enables nodes to collectively finalize blocks (Post-Consensus), allowing them to reject blocks that would seem valid based on chain-work but undo a block that was already deemed valid by the network. Likewise, nodes can reject blocks that try to include a transaction conflicting with a finalized transaction (Pre-Consensus). The block creation, validation, and triggering of events are all done by the underlying PoW consensus. This hybrid consensus is unique in its behavior and best defined as Avalanche-enhanced PoW (APoW).
What’s the difference between eCash’s Instant Finality and classic 0-conf transactions?
0‑conf transactions are unconfirmed and not yet settled. You’re trusting that the sender won’t try to double‑spend before the transaction gets mined. That may be “secure enough” for day-to-day transactions, but it is no real guarantee and gets particularly risky when transacting larger amounts or on networks with low hashrate. This is why exchanges often require multiple confirmations for PoW chains to credit a deposit, including on BTC. Avalanche Pre‑Consensus, on the other hand, gets the network to agree on a transaction almost instantly through a fast, probabilistic voting process. Once nodes reach consensus via Avalanche, that transaction is considered finalized and impossible to reverse, even before it’s mined into a block. So instead of “trusting” 0‑conf, Avalanche gives you near‑instant confidence backed by an actual real-time network agreement. This is why most exchanges accept eCash deposits after no more than 1-conf. The security guarantee of a deposit is already given after 3 seconds, but depending on the service’s backend architecture, deposits may still require a block to be discovered.
How secure is a finalized transaction?
We deem eCash’s security model as the most complete of all Bitcoin implementations. Avalanche finality is ranking among the highest of all crypto networks in terms of security. Once a transaction is finalized through Avalanche, reversing it would require controlling a large share of the staked XEC. That means an attacker would need to acquire a massive amount of stake just to attempt disruption, and even then, PoW remains the ultimate source of truth. In practice, Avalanche finalization is considered irreversible for any realistic attacker.
Can Avalanche be Sybil attacked with fake nodes?
For Avalanche to be Sybil-resistant, nodes need to be pegged to a scarce item. There are different ways to go about it. In the case of eCash, it is a minimum of 100m XEC, unmoved for 2 weeks, retaining the trustless and permissionless nature of the network and significantly increasing network security.
Why not use only proof-of-work for Sybil resistance?
Using Avalanche with “PoW only” for Sybil resistance sounds nice at face value, but would allow a miner to exclude other miners, making mining effectively permissioned. Instead, eCash uses stake proofs as its Sybil resistance mechanism. Avalanche is a finalization layer using stake-weighted voting, not a traditional PoS chain where validators create blocks.
Is Avalanche on eCash proof-of-stake?
While the Avalanche layer uses stake proofs, the eCash network remains a trustless PoW network. Stake proofs are needed only so nodes can participate in the voting process. These proofs show a node has skin in the game, preventing spam or Sybil attacks, but the stake is not used to produce or validate blocks like other PoS or hybrid systems would. This is a property of the breakthrough Avalanche consensus algorithm, which operates differently from PoW (or PoS) Nakamoto consensus.
Why not just stick with Nakamoto consensus only?
Nakamoto consensus is steady because it's written in the blockchain but slow to converge as it requires several confirmations before a transaction is deemed secure. Avalanche consensus is volatile because it's not written in the blockchain but fast to converge as a transaction is finalized and secured in about 3 seconds. The combination of both gives the best of both worlds.
Where can I learn more about Avalanche on eCash?
You can read more about Avalanche in our Avalanche and Instant Finality articles on our blog. There are also video-interviews with the eCash founder discussing Avalanche in depth here and here. You can also check out the Avalanche.cash dashboard.
Where can I get help or ask questions regarding Avalanche on eCash and the staking node setup?
You can get direct help from our devs in the official eCash Telegram group. There is also an eCash staking guide on our website and a video guide playlist on our YouTube channel.
