The Lightning Network is the most directly useful application of smart contracts to date since it allows for off-chain transactions that optionally settle on-chain. This infrastructure has clear benefits for both scaling and privacy. Decred is optimally positioned for this integration.
There is a two-phase process for voting to implement consensus changes that would create a hard fork.
The first Phase is meeting the upgrade threshold on the network. A majority of PoS/PoW nodes on the network must upgrade before voting can begin. This is measured in the following ways:
- For PoW, at least 95% of the 1000 most recent blocks must have the latest block version.
- For PoS, 75% of the votes cast within a static 2016 block interval must have the latest vote version.
The second phase is the voting itself. Voting takes place within a static 8064 block interval. If 75% of votes mined within that interval signal a ‘yes’ vote to the proposals, the changes are implemented. Implementation happens after one additional block interval to allow any remaining nodes to update prior to the fork.