5.3 Network layer

The network layer supports ARX operations through a hybrid Proof-of-Stake (PoS) and Proof-of-Relay (PoR) mechanism. This dual-consensus approach ensures both the cryptographic integrity of the blockchain and the high-performance reliability of the transport network.

Main Components

• Relay Nodes: Responsible for handling encrypted message routing, VPN traffic, and high-speed data transmission. They form the backbone of the privacy-preserving transport layer.

• Validator Nodes: These nodes produce blocks, confirm transactions on ArxNet, and verify the performance of the relay set.

• Proof-of-Relay (PoR): A specialized mechanism that rewards nodes based on measurable performance metrics, including uptime, latency, and data throughput.

• Slashing and Penalties: To maintain network health, nodes that exhibit poor performance, downtime, or malicious behavior lose a portion of their staked tokens.

• Interoperability: ArxNet is EVM-compatible and supports cross-chain bridges, ensuring seamless liquidity and governance alignment with the broader Web3 ecosystem.

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Reward Alignment

The network layer ensures that reliability and performance are directly rewarded through verifiable contribution. By linking economic incentives to technical performance, ARX maintains a high-quality infrastructure without centralized oversight.

Hybrid Consensus Efficiency By separating block production (PoS) from data routing (PoR), ARX can scale its connectivity services independently of its blockchain transaction throughput.