The Polkadot network is secured by a unique consensus mechanism called “Nominated Proof-of-Stake” (NPoS). In this mechanism, token holders use their DOTs to nominate validators, who are responsible for validating and processing transactions on the network. These nominated validators are then chosen by the network to participate in the consensus process and validate transactions.
To participate in the consensus process, validators must stake a certain amount of DOTs as collateral. This collateral is used to ensure that validators act in the best interest of the network and to incentivize them to behave honestly. If a validator is found to be acting maliciously or providing faulty information, their collateral will be slashed, and they will be removed from the network.
The NPoS consensus mechanism also allows for decentralized governance of the network, as token holders can vote to remove or replace validators if they are not acting in the best interest of the network. This ensures that the network is secure and that the community has a direct say in the decision-making process.
In addition to the NPoS mechanism, Polkadot also uses “Fishermen” to detect and prevent malicious behavior. Fishermen are similar to validators but are not required to stake any collateral and are not chosen by the network to validate transactions. They instead monitor the network for malicious behavior and report it to the validators, who then take appropriate action.
In summary, the Polkadot network is secured by the NPoS consensus mechanism, in which token holders nominate validators and use their DOTs as collateral. The mechanism also allows for decentralized governance, where the community has a direct say in the decision-making process. Additionally, the network uses “Fishermen” to detect and prevent malicious behavior, making it more secure and resilient to attacks.