Tipset Definition
A tipset, or ‘tips in a set’, is a term that came from Lotus, the Filecoin specification. In the context of blockchain and decentralized networks, it refers to multiple valid blocks at the same height in a blockchain. Such a situation arises in network conditions where multiple miners end up mining a block at the same blockchain height, that is, at the same level, creating multiple potential children for the previous block.
Tipset Key Points
- A tipset refers to a set of blocks with the same height in a blockchain.
- This situation arises when multiple miners generate a block at the same level in the network.
- Tipsets play a fundamental role in transaction verification and network decentralization.
- Tipsets determine the chain’s finality, the point at which transactions are irreversible and considered finalized.
- The dynamics of tipsets change with different types of consensus protocols.
What is a Tipset?
A tipset is unique to blockchain networks and plays a crucial role in maintaining the network’s integrity, transaction processing, and overall performance. When a blockchain consists of various blocks at the same height, these collectively are known as a tipset. It’s normal in large decentralized networks where diverse miners have similar opportunities to add new blocks.
Why is a Tipset Critical?
A tipset is critical because it ensures transaction verification, enhancing the network’s decentralization. It also supports scalability, improves latency, and guarantees finality—the state where transactions are irreversible. If one block at a certain height fails, the presence of other blocks at the same height (i.e., the rest of the tipset) ensures continuity of operations.
When Do Tipsets Occur?
Tipsets occur when more than one block is created at the same height in a blockchain network. This usually happens when different miners successfully verify and create new blocks at the same time. The existence of tipset also depends on the type of consensus protocol used in the network, as the chance of creating blocks at the same time varies between different protocols.
Where is Tipset Used?
Tipsets are used in blockchain networks that use protocols like Proof of Work (PoW) or Proof of Stake (PoS). They play a key role in networks like Filecoin, which uses expected consensus and verifiable delay functions, promoting network scalability, versatility, and efficiency.
How Does a Tipset Work?
When multiple blocks are mined at the same height in a blockchain, these blocks collectively form a tipset. Different mechanisms are then used to choose from this tipset, leading to the next consensus round. The operative protocol determines the block selection from the tipset—some will choose the block with the largest amount of work behind it, while others may look at the block with the most proof of stake.
