I am looking for a technical answer that explains how are validated the forged block.

I already looked in the NXT wiki and in their white paper and found no detailed explanation.


Below is an explanation how forging works at the current moment, in the future this will be slightly changed.

Every block has two fields - BlockSignature and GenerationSignature.

The former is filled by signing the block data with the private key of an account that generated a block and has almost nothing to do with forging process.

The latter is filled by computing SHA256(GenerationSignatureOfPreviousBlock+PublicKeyOfAccount).

The first 8 bytes of the hash give an unsigned 64-bit number in little-endian format, this number is called "hit".

Every account has a so-called EffectiveBalance which is usually (but not always) higher if the account holds more coins. EffectiveBalance is multiplied by some value that is the same for all the accounts - BaseTarget (it's adjusted every block trying to keep block generation rate at 1 minute) - and by number of seconds that have passed since the previous block. The resulting value is called "target".

If "hit" is less than "target" then peers accept a block and attach it to the blockchain.

This is the essential part of forging. I omitted such obvious things as validation of transaction signatures, checks for double-spending, etc.

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