6. NetMind Chain

6.1 NetMind Chain

The NetMind power network is built upon and governed using the blockchain, NetMind Chain. NetMind Chain enables the decentralization of all tasks, transactions and functions that occur on the platform. To be clear, the training process happens locally on the machines being used for training, not on the blockchain.

The operation of the blockchain will be facilitated by usage of a utility token, NMT (NetMind Token). We cover NMT in detail in the next section of the white paper.

NetMind Chain is based on the most mature Ethereum 2.0 technology at present such as POA-authoritative proof consensus mechanism and smart contracts fully compatible with the Ethereum chain.

6.2 Mind Nodes, Master Nodes and Staking

As well as adopting distributed technology as the design of the platform, NetMind Power also uses a decentralized management method. The system is composed of a large number of distributed machines, known as Mind Nodes.

Mind Nodes validate transactions and therefore build the blockchain. In reward for this, each Mind Node is rewarded with a Gas fee. Users can choose to stake NMT against Mind Nodes in order to receive staking rewards. The 21 Mind Nodes with the most NMT staked against them become Master Nodes.

Master Nodes receive an extra reward based on the authority they have gained. They collectively receive 10% of the total daily Staking reward. That 10% is distributed equally between the top 21 Master Nodes.

The remaining 90% of the Staking reward is distributed among users who stake on the top 21 Master Nodes, and provide liquidity to official trading pairs (see section 7.2 for reward types).

6.3 NetMind Chain Protocol

Netmind Chain is a public blockchain based on the Ethereum protocol, which adopts the POA (Proof of Authority) consensus algorithm and is fully compatible with Solidity contracts.

Compared with POW, POA does not need to consume a lot of resources to maintain the performance of the network, making the maintenance cost of such platforms extremely low. In contrast to POA, in POS (Proof of Stake) and DPOS (Delegated Proof of Stake) consensus algorithms, the more Tokens a user owns, the more likely they are to become nodes and be responsible for producing blocks. In POA, however, the validators responsible for processing transactions and validating blocks must go through a series of reviews and must ensure their own reliability.

6.4 Reward Calculation and Withdrawal for Power

As mentioned in sections 6.2 and 7.2, users contributing their machines to the NetMind Power network and those staking NMT against Mind Nodes will receive rewards in the form of NMT. The calculation and withdrawal of these rewards are managed by the on-chain smart contracts of the NetMind Chain.

Users will be able to withdraw the rewards they have earned through the smart contract (see section 7.2 for reward types), ensuring transparency and openness throughout the process.

6.5 Task Scheduling and Fee Payment

To ensure a fair allocation of computing power across different users and maintain the smooth operation of the NetMind network, NetMind has integrated a task scheduling system into the smart contract of the NetMind Chain. Fees incurred by users when utilizing various services on the NetMind network will also be incorporated into the smart contract.

This approach allows users engaging in activities such as model training or inference on the NetMind Power network to obtain the respective services in the fastest possible time and at the best available price.