🔃Overlay Network

The Overlay Network is a Multiparty Computation (MPC) network of nodes, independent of the SEDA Chain Nodes. Where the SEDA Chain inherits the staking mechanism from the Cosmos SDK, the Overlay Network’s staking scheme is more similar to Ethereum 2.0’s staking. There is both a minimum and a maximum stake weight. This minimum stake weight incentivizes validators to run multiple instances of the Overlay Nodes in case they want to stake more tokens than the maximum staking weight.

The Overlay Network is tasked with the execution of Data Request Programs. The SEDA Chain generates a new Verifiable Random Function (VRF) seed for each incoming Data Request. We seed the VRF with the VRF seed of the previous block and the Data Request ID. Overlay Nodes then use this seed and input it into their own VRF, which generates a verifiably random number that decides whether the Overlay Node is eligible for resolving this request.

After the SEDA Chain randomly selects Overlay Nodes to form a secret committee, they execute the Program’s binary, referenced by the Data Request, and report the computed outcome in the form of a commit-reveal scheme. After which the outcomes are tallied and distributed.