Crypto Terms: Letter T

What is Tipset?

Tipset - a set of blocks with the same height and parent tipset that makes up a blockchain.
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Let's find out Tipset meaning, definition in crypto, what is Tipset, and all other detailed facts.

A tipset is a set of blocks that makes up a blockchain. Each block in a tipset has the same height and parent tipset. This term is mostly used to describe the blockchain of Filecoin. Since the Expected Consensus (EC) system of Filecoin is election-based and allows many miners to be elected leaders in a round, its consensus process is dependent on tipsets.

This means that Filecoin (or any other similar system) allows multiple storage miners to create blocks in a single epoch, increasing network throughput.

Besides, the use of tipsets to build a blockchain can also help with the security of the network. Since the weight of each tipset is proportional to the amount of storage it provides, any node attempting to prevent legitimate blocks from being created must contend against the fact that consensus prefers heavier chains.

Since decentralized storage systems inherently prioritize chains that offer more storage, the advantage of employing a tipset system is that miners will group together to promote the heaviest chain or the chain that is providing value. Due to the fact that lighter chains don't have the draw of larger storage power, they become orphan blocks.

The tipset system of Filecoin is similar to Ethereum in that it encourages members to collaborate and avoids wasting time by increasing chain throughput.