> For the complete documentation index, see [llms.txt](https://cryptoarena.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cryptoarena.gitbook.io/docs/self-decentralization/how-it-works/consensus-and-limits.md).

# Consensus & Limits

Unique bits to ensure the correct delivery of Self-Decentralization

## Preface

Is a word thrown around a lot, it's important to understand the nuances implied in different contexts:

**Consensus** means agreement on a decision or opinion within a group. A **protocol** is a framework of rules.

But within the context of blockchains it more specifically refers to three sets of rules governing how the blockchain decides on the key operations that ensure the integrity and validity of the data of the network:

1. **Block Authorship**
2. **Finality**
3. **Fork-choice rule.**

In simple words: **Authorship** rules regulate the participation of nodes in producing new blocks, **Finality** is the certainty that new blocks can be produced, and transactions recorded by the blockchain have happened and are genuine, and **Fork-choice rule** is how participating nodes come to an agreement on which set of data is correct - most blockchains operate under the "longest chain is best" assumption.

### CryptoArena Consensus

CryptoArena is a Parachain built on Polkadot's Relay Chain, whom is a multi-chain environment using a hybrid consensus protocol combining probabilistic and deterministic finality ( [**GRANDPA**](/docs/technology/consensus/grandpa.md) **+** [**BABE** ](/docs/technology/consensus/babe.md)).

#### Sharded Shared Security

Parachains can interact without trust bounds much like smart contracts on Ethereum can interact without trust bounds — they share state and validation logic with the greater network.

Because Polkadot provides the security and validity guarantees, parachains are not subject to normal blockchain attack scenarios, like a 51% attack. Polkadot validators will reject invalid blocks, so a parachain only needs a single honest collator to submit blocks. 

#### Distributions Chain

Both [**primary** ](/docs/self-decentralization/how-it-works/distributions.md)**&** [**secondary** ](/docs/self-decentralization/how-it-works/distributions.md#secondary-distributions)revenue distributions, as well as the glory system, are handled by CryptoArena's own distributions chain. See [**Proof of Revenue Distribution**](/docs/self-decentralization/how-it-works/pord.md) for more.

#### ZenChain

Is an extensible blockchain that enables out advanced copy trading solution by running [Zenroom](https://zenroom.org), a small and secure execution environment for cryptographic functions, and Zencode, its DSL, which allows for writing and executing smart contracts in plain English language, without any coding knowledge.

## Limits

Our cryptographic **Security Tokens** ( [**ARENA**](/docs/security-tokens.md) ) directly represent common stock in CryptoArena B.V. and at the same time are a key component to the delivery of our self-decentralization process, and of the distributions of profits to the intended stakeholders. 

These tokens feature four limits mentioned below, that are critical to the proper and correct delivery of our core promise and to the inter-stakeholder equilibrium achieved by our value proposition.

As such, they are **built-in, hard-coded, and cannot be changed**. Even by CryptoArena.

### **Exclusivity** 

Token **supply** **is fixed permanently** at 1,000,000,000 (**1 Billion**) units. **No minting, ever**. 

#### Shares held are not subject to dilution effects of any kind. 

Progress in self-decentralization process drives supply scarcity, providing the Token with escalating price support until completion of the aforementioned process.

### **Time Limit**

**10 years max**, starting on public [Launch ](/docs/roadmap.md)of the platform. 

A simple max duration limit for the [**Self-Decentralization Process**](/docs/self-decentralization/how-it-works.md), intended to prevent shareholders, or coalitions thereof, from stalling the achievement of the process. When time elapses, all outstanding tokens will be subject to BuyBack, and thus, repurchased.

### **Movement Restrictions**

ARENA Tokens only exist within the digital environment of CryptoArena’s blockchain.

They are subject to restrictions both for purchase (vetting, KYC, give consensus) and sale (BBB or OTC only), and **cannot be withdrawn to third party wallets or exchanges**. 

(Note: our blockchain is modular, interoperable and extensible, so this may change in time depending on partnerships we may establish)

Our Tokens are very unique and serve vital purposes, they directly represent shares in the Company’s share capital, and are even used to automate the distribution of proceedings. This also means that they’re **irreplaceable**, and measures were needed to ensure no token is lost, stolen, stored somewhere offline, or otherwise out of reach when needed to complete self-decentralization.

### **Immutability**

Smart Contracts are **permanent**. 

We aim to deliver “something big”; something that requires the efforts and cooperation of many, and as such, many things can go wrong. We’ve taken particular care to ensure that whatever may come, nothing can stop CryptoArena from pursuing its original “**do good**” mission. 

CryptoArena exists to deliver Self-Decentralization, as extensively defined in all documents etc., and not even a “hostile” change of control of all outstanding shares can change that.

#### More about CryptoArena Consensus:

{% content-ref url="/pages/-MVW\_jbHk2Y2lES8DEH6" %}
[Proof of Revenue Distribution](/docs/self-decentralization/how-it-works/pord.md)
{% endcontent-ref %}

#### More about Predetermined Limits:

{% content-ref url="/pages/-MReraPkYWLxxhZDMPrj" %}
[Predetermined Governance](/docs/security-tokens/limits.md)
{% endcontent-ref %}