XtraBytes is built on a novel algorithm requiring none of the traditional mining supports typically seen in blockchains which rely on POW and POS. This new algorithm is called Proof of Signature (PoSign)
Although much of what is written below is still theoretical and still in development, its what is expected to work upon completion. This is a basic explanation and changes are probable.
PoSign (Proof of Signature) is the new consensus algorithm for XtraBytes. This eliminates both POW and POS to run the XBY blockchain and is the basis for the 100% rebuild and the breakaway from being a Bitcoin clone.
This would create the most secure consensus system known to date because of the potentially 100% of signatures for each block from trusted nodes, rather than just 1 signature that gets agreed upon from an untrusted/unknown source.
STaTIC nodes are what the XtraByte system physically runs on and the mosaic is related to what these nodes do within the system: Services, Transactions, and Trusted In Control nodes. All services that will be created and future innovation will run through the STaTIC node and each node that is online will receive rewards for these services as well as the transaction fees that occur.
Each client sees the same transactions and therefore each block is equally visible by the entire network. The STaTIC nodes job is very broad with regard to consensus. They not only sign the blocks, but they also control all validations and broadcasting as well. If any STaTIC node violates the consensus, the other STaTICs will blacklist it and continue signing the valid blocks.
VITALS network: The VITALS network is the XBY version of chord networks. The VITALs mosaic stands for Virtual Information Transmission Aligning STaTICs.
PULSE synchronization system: PULSE is another mosaic and stands for Ping Unified Ledger Synchronization Equalizer. These are the message transmission signals that ensure the STaTICS receive all the correct messages.
How PoSign Will Function
As stated above, XtraBytes is built on a new and novel algorithm requiring none of the traditional mining supports typically seen in blockchains which rely on POW and POS. This new algorithm is called Proof of Signature (PoSign).
PoSign will ensure a signature rate of 100% for each block system-wide, which is made possible through the use of its real network of STaTIC nodes and a network of virtual nodes call VITALS (see above). The VITALS network is composed of a fixed number of virtual nodes that corresponds and is controlled by one or more STaTIC nodes. Block communication is controlled entirely through the communication (using PULSE) between the VITALS and the system of real STaTIC nodes.
When a transaction is created, it is verified by all the STaTIC nodes in the network. Once the transaction has been completely validated, the VITALS network enters the process to create the new blocks and achieve 100% signature validation of the new block.
Using this method of block creation, XBY avoids transaction and block conflicts while allowing every peer knowledge of who will create the new block and who will distribute the block first.
**** Taken from official announcement on Bitcoin Forum at https://bitcointalk.org/index.php?topic=1864397.0