Transactions in Harmony blockchain are sent to and processed by a specific shard instead of all aiming to enable process transactions in parallel thus improving the overall transaction processing capacity of the blockchain. The network supports 4 shards of 1000 nodes, producing blocks in 2 seconds with finality.
Distributed Randomness Generation (DRG)
Harmony designed a distributed randomness generation (DRG) protocol based on the VRF (Verifiable Random Function) and VDF (Verifiable Delay Function). These functions ensure the protection of nodes and secure the validation process. The VRF ensures that network validators are randomly assigned and shuffled among shards while the VDF is used to delay the revelation of the final randomness in order to be secure against the last-revealer-attack.
Fast Byzantine Fault Tolerance (FBFT)
The FBFT allows at least 250 validators to reach consensus within 2 seconds.
Effective Proof-of-Stake (EPoS)
Effective Proof-of-Stake is an efficient staking mechanism that avoids stake centralization while still supporting stake compounding and delegation. Validators with a large amount of staked tokens are obligated to run more nodes to support the network while validators with less stake run fewer nodes. In EPoS, the validators will be rewarded in proportion to their effective stake.
Harmony is a permissionless and decentralized network that is governed by the community. Any protocol-level decisions or improvements will go through the open governance process to finalize.