A node needs to verify that all transaction that it receives are valid before adding it to its local copy of tangle. For this we would need an algorithm which given the cone of this transaction would assert whether the sub-table is valid or not. In this regard I have 2 questions -
What is the definition of valid exactly other than syntactical validness. If I understand correctly for a transaction to be valid it must not approve (either directly or indirectly) conflicting pair of transactions. Is this correct?
Algorithm to actually assert this validity? If my understanding of a valid transaction is correct than in order to determine if a transaction is valid we would need to start from genesis and create a state of ledger for the sub-tangle and then check if the ledger is in valid state (non-negative balances). Although this is correct it seems to me that this is computationally very expensive considering that we would need to run this algorithm many times a second (=TPS). Are there any known efficient ways to tackle this situation?
PS : In the discussion above tangle is assumed to be (pure) COO-less.