# Consensus Mechanism and Incentive Scheme

The Proof of Participation consensus mechanism proposed is based on a resource allocation module where the participants in transaction or value transfer constitute the nodes and the network. The user 𝑢 is the initiator and the nodes 𝑛 will be used as the verifier on the network. Hence,

`𝐹=0 →𝑉={𝐺1,𝐺2,𝐺3,𝐺4}`` `*`(29)`*

Where 𝐹: Friction 𝑉 : Validator 𝐺 : Groups of (i) smart contract accounts, (ii) transactions, (iii) receipts, and (iv) others


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