The dPoW process is rather straightforward. While it provides an incredibly high level of security, dPoW is an elegant and simple security solution that can be explained in 7 steps.
1) Choosing A Block To Notarize
The Notary Nodes propose a particular block to notarize from a dPoW-protected blockchain onto the KMD chain.
That dPoW-protected chain’s network then comes to consensus on the fact that the block is valid and ready for notarization.
2) Choosing Which Notary Nodes Will Notarize
Next, the Notary Nodes must come to consensus on which nodes will participate in the notarization.
Each notarization transaction is a 13-of-64 multi-signature transaction, with the 13 signature-providing nodes chosen randomly before each notarization transaction.
3) Notarizing To The KMD Blockchain
Once the Notary Node network has reached consensus on which 13 nodes will participate in the notarization, they make a transaction on the KMD blockchain.
Using the OP_RETURN command, this notarization transaction saves the block hash of the block chosen in Step 1 onto the KMD ledger.
4) Notarizing To The BTC Blockchain
Now, the Komodo network comes to consensus on which block will be notarized to the Bitcoin blockchain.
Using the same procedure as Step 3, the Notary Nodes execute a transaction on the Bitcoin chain, thus saving a KMD block hash onto the BTC ledger.
5) Back Notarization To KMD Network
After the Bitcoin network has confirmed the notarization transaction in Step 4, the Notary Nodes broadcast this information to the KMD network.
This provides complete immutability to the notarized block and all blocks that preceded it. The network will not accept a re-org that removes or alters a notarized block.
6) Back Notarization To Each dPoW Protected Chain
The Notary Nodes also announce to the networks of each dPoW-protected chain that a notarization has been completed.
Just as in Step 5, once a dPoW-protected chain’s network learns that a block has been notarized, that block and all blocks that came before it become immutable.
7) Repeat The Entire dPoW Process
Komodo’s Notary Node network repeats the entire dPoW roughly every ten minutes. This provides BTC-level security around the clock to all dPoW-protected blockchains.
Even if an attacker gains control of a network, they cannot re-organize any blocks that have been notarized. Since notarizations occur every 10 minutes, 51% attacks are both infeasible and unprofitable.