The Beldex core, forming the basis of the Beldex ecosystem, is a decentralized network facilitating confidential transactions and communications. First conceptualized in 2018, Beldex was forked from the Monero blockchain, and since evolved to resist ASIC & GPU mining, enabled masternodes, transitioned to Proof of Stake consensus, and added support for dApps like BChat, BelNet, Beldex Browser, Beldex Protocol, Beldex Wallet and the Beldex Name Service.
How Beldex Ensures Confidential Transactions?
Beldex uses a combination of Ring Signatures and Stealth Addresses (one-time burnable addresses) to ensure your transactions are completely confidential.
Ring signatures mask the true identity of the sender while stealth addresses help conceal the true identity of the receiver.
How Are Ring Signatures Significant?
- •Each user has a specific public key associated with their account on the blockchain.
- •Use of a single key for signing transactions ties their digital signatures back to their digital identity.
- •With enough resources and information, one can even completely deanonymize the parties involved in the transaction.
- •The problem of using a single signature to sign transactions was first highlighted by a group of researchers — Rivest, Shamir, and Tauman (RST).
- •Ring Signatures allow a group of members to sign a single transaction, the original sender’s signature remains mixed up with a group of decoy signatures.
How Are Stealth Addresses Significant?
- •Stealth addresses are one-time addresses that are generated during a Beldex transaction. It anonymizes the identity of the receiver using the Diffie-Hellman key exchange method.
- •Stealth addresses are generated for each transaction.
- •Consider that Alice sends 10 BDX to Bob, a unique one-time public key is generated. This public-key corresponds to the output Alice sent Bob, and he can verify it on the blockchain using his view key.
- •A corresponding one-time private key is generated by Bob’s wallet, which allows him to spend the said outputs using his spend key. A bit technical, yes. But, it has its benefits.
- •What’s the benefit? Bob can deny that Alice sent him BDX. He can also deny that he received any BDX at all.
- •We can prove the authenticity of transactions while ensuring confidentiality.
RingCT (Ring Confidential Transactions)
While ring signatures and stealth addresses ensure the anonymity of the sender and receiver, they intrinsically do not conceal the transaction amount. This limitation is addressed by Ring Confidential Transactions (RingCT).
RingCT, introduced by Shen Noether of the Monero Research Lab, enables the amounts being transferred to remain confidential (plausible deniability) while maintaining verifiability.
RingCT achieves this using Pedersen Commitments and Range Proofs. With the former, the sender commits to a value without revealing it and with the latter, anyone can prove that the committed values lie within a valid range (for instance, that the amount isn’t negative) — without disclosing the actual numbers.
This mechanism ensures that every transaction on the Beldex network maintains three layers of confidentiality — the sender, the receiver, and the transaction amount.
RingCT also serves as the foundation for the evolution of range proofs into newer cryptographic innovations like Bulletproofs and Bulletproof++, which further reduce the proof size while preserving the integrity and confidentiality of the protocol.
Proof Size & Bulletproof++
The size of Beldex blocks are dynamic with a lower limit of 300 kB and an upper limit of 600 kB. With time and adoption, as more blocks are generated, the blockchain becomes large and chunky. Current size: 41.1 GB.
To reduce the size of the blockchain, we need to first reduce the size of individual blocks of transactions.
And to reduce the size of a transaction, we need to reduce the size of the proof attached to it, used to verify its authenticity.
In a normal blockchain transaction, this proof usually doesn’t consume much space. However, with the additional complexity of hiding transaction amounts, sender and receiver information, it becomes much larger — at least by 10 times.
Reducing proof size is possible with Bulletproofs. These are short non-interactive zero knowledge proofs that require no trusted setup. They’re essentially efficient range proofs.
Bulletproofs can reduce transaction size approximately by 70 to 80%. A newer version known as Bulletproof++ is almost 38% smaller than original Bulletproofs.
BP++ is currently under active development, expected to roll out onto the Beldex mainnet by the end of this year.
Consensus Mechanism
Proof of Work Consensus
Back in 2018, Beldex used a Proof of Work Consensus mechanism powered by distributed miners and masternodes, a 2 layer-architecture. However, there were some constraints with using the PoW consensus model.
The blocktime was 120 seconds, setting up miners was uneconomical, the block reward was only 2 BDX, miners could produce blocks while masternodes only had validated rights, rewards weren’t evenly distributed among participants, and the entry barrier seemed quite high for the average miner.
Proof of Stake Consensus
To overcome these difficulties, Beldex transitioned to a Proof of Stake Consensus in December 2021. The PoS consensus shift made the network more than just economical and green.
The block time was reduced 4X from 120 seconds to 30 seconds, miners were deprecated, masternode validators could now generate and validate blocks, and rewards were evenly distributed using a ‘First In First Out’ reward queue.
Block rewards increased 5X from 2 BDX to 10 BDX and Flash instant transactions were rolled out. With Flash, transactions are confidential and near-instantaneous. Basically, the network now became much more economical at handling transactions, entry barriers were reduced significantly, and everyone was given a fair chance at participation. Also, Flash transaction fees were burned, removed from circulation and sent to a wallet with a key that nobody holds.
Verifiable Random Functions
However, the current PoS consensus also has its limitations, so Beldex is transitioning to a consensus model based on Verifiable Random Functions (VRFs). Here’s a detailed account on why Beldex plans to upgrade to VRFs.
The Core Infrastructure: Masternodes
The Beldex Masternodes form the foundational layer of the Beldex network. They’re responsible for validating transactions, relaying messages on BChat, routing traffic on BelNet and the Beldex Browser, incentivizing users, and providing the necessary Decentralized Physical Infrastructure required to keep Beldex’s dApps and macroeconomic model active and self-sustaining.
According to Masternodes.online, Beldex currently ranks as the leading masternode project, offering an annual ROI of 30.46%. Presently, there are over 2000 active masternodes on the Beldex network.
How to Run A Beldex Masternode
You can run a Beldex masternode with a stake of 10000 BDX, a dedicated node or an outsourced node. Setting up a node with Nodehub, Higlan, or Pecunia platform is quite simple. Learn how to set up a Beldex masternode here.
Below is a detailed video guide on setting up a Beldex masternode:
Validator Rewards
Validator rewards are calculated based on the total daily/weekly/monthly emissions, a ‘First In First Out’ reward queue and the total number of validators in the network.
Beldex has a blocktime of 30 seconds on average (self-correcting, self-adjusting), and 10 BDX block rewards. 6.25 BDX (62.5%) of each block reward is allocated to the validator who produced the block and the rest is allocated to Beldex foundation treasury.
With the current PoS consensus, the network follows a fair reward queue. Each validator is given a chance to produce a block. Thus, each validator is rewarded based on the formula below
Total daily rewards = [(28800%62.5) / Total number of validators in the network]
Calculate your Beldex validator rewards
Beldex Ecosystem DApps
The Beldex ecosystem is the application layer of the network that comprises BChat, BelNet, Beldex Browser, Beldex Protocol and the Beldex Wallet.
BChat
A decentralized messenger that safeguards the confidentiality of your conversations. Leverages the Beldex masternodes to relay end-to-end encrypted messages. Supports BDX transfers in-chat, secure voice and video calls, encrypted group chats, and more!
BelNet
An onion-routing protocol based decentralized VPN network that masks your IP, location, and providers censorship-free, unrestricted access to online content. It encrypts your data and makes use of Beldex masternodes and community-run exit nodes to route it securely to the destination.
Beldex Browser
A smart, ad-free, confidential, AI-powered decentralized browser with BelNet integrated onto it. It routes your traffic the same way BelNet does, supports .bdx domains (BNS), and blocks ads, cookies, javascript and other trackers. Its AI-powered summarizer allows you to quickly scan content online while the Ask Beldex feature responds with instant answers to your questions.
Beldex Protocol
A protocol that anonymizes transactions of other blockchain assets. Currently supports the Polygon network and the MATIC token.
Beldex Wallet
A cross platform decentralized wallet that lets you hold, send, receive, and swap BDX. You can also register and update BNS names and domains on the wallet, in addition to registering and maintaining your masternode.
Beldex Name Service
A decentralized naming and discovery layer for the Beldex ecosystem. The BNS maps human-readable .bdx names/domains to BChat IDs, wallet addresses, MNApps, exit nodes, and other on-chain resources — making your identity on Beldex simple, secure, and easily discoverable.
MNApps
Web applications hosted on BelNet with BNS domains. Access them by connecting to BelNet or by using the Beldex browser.
Hardforks & Beldex Core Versions
Feb. 2019 | Ramdius: First ever release of the Beldex network. Secure transactions with a simple fee, PoW consensus.
Apr. 2019 | Feng Huang: Integrates the Cryptonight Conceal hashing algorithm (resistance to ASICs & GPUs), introduces masternode validators. Miners + masternodes form a 2 layer architecture. Adds SwarmID selection algorithm, Swarm assignment logic, and a number of other code level improvements.
Dec. 2021 | Bucephalus Hardfork: Transitioned to PoS consensus on block height 742421. Mandatory update that reduced transaction size, block time, increased block rewards, deprecated miners, and introduced CLSAG signatures, Flash transactions, Beldex storage server, and BelNet (masternode modules).
Jan. 2024 | Bern Hardfork: Introduced the Beldex Name Service (BChat, Wallet Namespace and BelNet Namespace), updated versions of the storage server and BelNet masternode modules, BNS registration period, fee, and burn mechanism at block height 2986890.
Sept. 2024 | Hermes Hardfork: Introduced EVM-chain support for the Beldex Name Service, fixes sanity check issues, ordains multi-masternode setup limits, and other fixes at block height 3546545.
Upcoming Hardforks: Mandatory hardforks that introduce Bulletproof++ & VRF consensus.
Closing Thoughts
Beldex’s evolution from its Monero roots to a comprehensive confidentiality-centered ecosystem underscores its commitment to building a sustainable, self-sufficient decentralized infrastructure.
Using a triad of technologies — Ring Signatures for sender anonymity, Stealth Addresses for receiver anonymity, and RingCT for amount confidentiality — Beldex Core ensures that every transaction remains unlinkable and untraceable.
From confidential transactions to efficient consensus and dynamic dApps like BChat, BelNet, and the Beldex Browser, every layer of Beldex Core is developed for trustless, censorship-resistant communication and financial interaction.
As the network transitions toward Bulletproof++ and VRF consensus, Beldex is not just enhancing scalability and fairness — it’s redefining what it means to achieve true confidentiality and decentralization in Web3.