This documentation applies to version 0.7 of Sawtooth Lake. Documentation for the latest version is also available.


This project includes a consensus algorithm, PoET (Proof of Elapsed Time), which is intended to run in a Trusted Execution Environment (TEE), such as Intel® Software Guard Extensions (SGX). This release includes software which runs outside of SGX and simulates the behavior of the PoET algorithm. It does not provide security in this mode. This project is intended for experimental usage and we recommend against using it for security sensitive applications.

This project, called “Sawtooth Lake” is a highly modular platform for building, deploying and running distributed ledgers. Distributed ledgers provide a digital record (such as asset ownership) that is maintained without a central authority or implementation. Instead of a single, centralized database, participants in the ledger contribute resources to shared computation that ensures universal agreement on the state of the ledger. While Bitcoin is the most popular distributed ledger, the technology has been proposed for many different applications ranging from international remittance, insurance claim processing, supply chain management and the Internet of Things (IoT).

Distributed ledgers generally consist of three basic components:

  • A data model that captures the current state of the ledger
  • A language of transactions that change the ledger state
  • A protocol used to build consensus among participants around which transactions will be accepted by the ledger.

In Sawtooth Lake the data model and transaction language are implemented in a “transaction family”. While we expect users to build custom transaction families that reflect the unique requirements of their ledgers, we provide three transaction families that are sufficient for building, testing and deploying a marketplace for digital assets:

  • EndPointRegistry - A transaction family for registering ledger services.
  • IntegerKey - A transaction family used for testing deployed ledgers.
  • MarketPlace - A transaction family for buying, selling and trading digital assets.

This set of transaction families provides an “out of the box” ledger that implements a fully functional marketplace for digital assets.


Consensus is the process of building agreement among a group of mutually distrusting participants. There are many different algorithms for building consensus based on requirements related to performance, scalability, consistency, threat model, and failure model. While most distributed ledgers operate with an assumption of Byzantine failures (malicious attacker), other properties are largely determined by application requirements. For example, ledgers used to record financial transactions often require high transaction rates with relatively few participants and immediate finality of commitment. Consumer markets, in contrast, require substantial aggregate throughput across a large number of participants; however, short-term finality is less important.

Algorithms for achieving consensus with arbitrary faults generally require some form of voting among a known set of participants. Two general approaches have been proposed. The first, often referred to as “Nakamoto consensus”, elects a leader through some form of “lottery”. The leader then proposes a block that can be added to a chain of previously committed blocks. In Bitcoin, the first participant to successfully solve a cryptographic puzzle wins the leader-election lottery. The elected leader broadcasts the new block to the rest of the participants who implicitly vote to accept the block by adding the block to a chain of accepted blocks and proposing subsequent transaction blocks that build on that chain.

The second approach is based on traditional Byzantine Fault Tolerance (BFT) algorithms and uses multiple rounds of explicit votes to achieve consensus. Ripple and Stellar developed consensus protocols that extend traditional BFT for open participation.

Sawtooth Lake abstracts the core concepts of consensus and isolates consensus from transaction semantics. Sawtooth Lake currently provides a single consensus protocol called PoET, for “Proof of Elapsed Time.” PoET is a lottery protocol that builds on trusted execution environments (TEEs) provided by Intel’s SGX to address the needs of large populations of participants. The second, Quorum Voting, is an adaptation of the Ripple and Stellar consensus protocols and serves to address the needs of applications that require immediate transaction finality.

Proof of Elapsed Time (PoET)

For the purpose of achieving distributed consensus efficiently, a good lottery function has several characteristics:

  • Fairness: The function should distribute leader election across the broadest possible population of participants.
  • Investment: The cost of controlling the leader election process should be proportional to the value gained from it.
  • Verification: It should be relatively simple for all participants to verify that the leader was legitimately selected.

Sawtooth Lake provides a Nakamoto consensus algorithm called PoET that uses a trusted execution environment (TEE) such as Intel® Software Guard Extensions (SGX) to ensure the safety and randomness of the leader election process without requiring the costly investment of power and specialized hardware inherent in most “proof” algorithms. Our approach is based on a guaranteed wait time provided through the TEE.

Basically, every validator requests a wait time from a trusted function. The validator with the shortest wait time for a particular transaction block is elected the leader. One function, say “CreateTimer” creates a timer for a transaction block that is guaranteed to have been created by the TEE. Another function, say “CheckTimer” verifies that the timer was created by the TEE and, if it has expired, creates an attestation that can be used to verify that validator did, in fact, wait the allotted time before claiming the leadership role.

The PoET leader election algorithm meets the criteria for a good lottery algorithm. It randomly distributes leadership election across the entire population of validators with distribution that is similar to what is provided by other lottery algorithms. The probability of election is proportional to the resources contributed (in this case, resources are general purpose processors with a trusted execution environment). An attestation of execution provides information for verifying that the certificate was created within the TEE (and that the validator waited the allotted time). Further, the low cost of participation increases the likelihood that the population of validators will be large, increasing the robustness of the consensus algorithm.

Our “proof of processor” algorithm scales to thousands of participants and will run efficiently on any Intel processor that supports SGX.

As noted in the caution above, the current implementation simulates the behavior of the PoET algorithm running in a trusted execution environment and is not secure. There are some benefits to using a simulator:

  • It does not require you to have a processor which supports SGX in order to experiment with Sawtooth Lake.
  • It allows running many validators (nodes) on a single system. An SGX implementation of PoET will allow only a single node per CPU socket.

Getting Sawtooth Lake

The Sawtooth Lake platform is distributed in source code form with an Apache license. You can get the code here and start building your own distributed ledger.


One repository contains all of the the code needed:


Contains fundamental classes used throughout the Sawtooth Lake project, as well as:

  • The implementation of the validator process which runs on each node
  • The implementation of a transaction family for buying, selling and trading digital assets, and a client program for interacting with a node to execute market transactions
  • Example code, in the form of games, which demonstrate key concepts of Sawtooth Lake
  • Tools including a Vagrant environment for easily launching a network of validators
  • Source files for this documentation