1. What is forging?
Forging is another word for block generation, at Bitcoin this process is called mining. The term “forging” was coined by the Nxt community. Earlier PoS systems called the process “staking”.
Everyone can enable forging, but only the 101 active delegates will actually forge and earn rewards.
There are two methods to enable forging.
You can login to the client user interface and enable forging by hand. The problem with this method is, that if your client restarts (due to an error or server update) forging will need to be enabled again.
For optimum productivity, it is recommended to run your own node and insert your passphrase into the config.json file. Best to do this before you become an active delegate. Upon starting the Shift client, forging will be automatically enabled for all accounts for which passphrases are specified in the config.json. Which means after restarting your client, forging will continue without interruption.
With each update we will specify if delegates need to update or not. If new features involve backend changes, you will likely have to update.
The most important factor is your internet connection latency. Exact numbers will be revealed in the future. Right now we estimate, that any cloud hosting provider, and most modern home connections should be more than sufficient.
One other important factor is memory; we currently recommend at least 2GB memory as an active delegate. This ensures a secure and stable network.
In addition to the forging reward earned for every block your delegate generates, your delegate will also earn an equal share of all regular transaction fees occurring on the network.
The total share of regular transaction fees, is dependent on the volume of transactions occurring on the network for a given round.
The forging rewards occur at a fixed rate per block, currently 1 SHIFT per block.
No, it doesn’t. An active delegate with 100 SHIFT receives the same amount of SHIFT from forging as an active delegate with 1,000,000 SHIFT.
This article uses the Lisk Wiki on GitHub as basis.