What is Consensus Algorithm In Blockchain & Different Types Of Consensus Models?
We are residing in a technologically advanced world, where the technologies are changing with each passing day, and people are going more digital. People always crave a secure and easy environment to earn money.
This gave rise to the concept of cryptocurrencies and blockchain mechanisms. These are digital coins that can earn you real money. This article will clear your doubts about Blockchain’s consensus algorithm and the popular types of different consensus models.
Consensus algorithm:
With the introduction of the Ethereum consensus fork, just like the Proof-of-Work (PoW) of Bitcoin, the consensus algorithm needs the miners to fix the complicated cryptographic mathematical puzzles. And for this, they are rewarded with some quantity of Bitcoins.
Each of the added blocks to the network needs to follow some consensus rules. And the ones that fail to follow the rules will get rejected. Consensus rules and PoW consensus algorithm makes the network reliable and strong and keeps the security intact. Some of the types of consensus models are:
PoW (Proof-of-Work):
In PoW, the miner solves the mathematically complicated puzzles on the latest block. It is done even before the block is approved to the ledger.
Then, the solution is forwarded to other miners, which they verify and then accept. And after this verification, the transactions are approved and finalized in blockchain forking services.
PoS (Proof-of-Stake):
For mining, Proof-of-stake consensus needs lesser CPU computations. It shares the same purpose as PoW but in a different process.
The new blocks’ creator is selected in a deterministic method, based on its stake (wealth). It means there is no block reward in a PoS mechanism. And thus, the miners charge for the transaction fees.
DPoS (Delegated Proof-of-Stake):
In the case of DPoS consensus forking, the holders of the tokens do not work on the blocks’ validity. And instead, they choose delegates to perform the validation. There exist 21 to 100 delegates in a DPoS system.
All the selected delegates change periodically. And they are ordered to deliver their blocks. DPoS is arguably faster than most of the consensus algorithms.
BFT (Byzantine Fault Tolerance):
The issue in an unreliable or rogue node is fixed by using BFT. If any inconsistent information is sent by a member who belongs to the community, it breaks down the blockchain’s reliability. And no central authority can correct it. PoW already provides BFT via its power of processing.
PBFT (Practical Byzantine Fault Tolerance):
PBFT was the first solution to attain consensus during Byzantine failure in blockchain technology. In this mechanism, an internal state is managed by the ‘general’. And it is an information status that is ongoing.
After getting a message, a general uses it in connection to the internal state, to begin with, a process of computation.
SIEVE:
Hyperledger makes this SIEVE consensus works in blockchain mechanism.
It helps the network to identify and eliminate the possible requests that are non-deterministic. It further achieves consensus on the suggested transaction’s output.
PoW (Proof-of-Weight):
Based on the Algorand consensus model, PoW is a broad part of the consensus algorithms. When the tokens’ percentage in-network is owned and presents a chance of “discovering” the upcoming block, what is used is the relatively weighted value. Proof-of-Spacetime of Filecoin is weighted on the amount of IDFS data being gathered.
UNL (Unique Node Lists):
Ripple makes use of sub-networks that are trusted collectively, known as UNL (Unique Node Lists). It is used to deal with latency, which generally characterizes the BFT-tolerant systems. In place of the whole network, a node is needed to question its UNL for reaching consensus. This particular mechanism enables less than 1/5th of its nodes to be faulty.
PoB (Proof of Burn):
In the case of PoB, you do not need to invest money in expensive computer equipment. You send the coins to a place from where it becomes unrecoverable.
Based on a random selection process, you can have the privilege of a lifetime of mining on a system. An alternative chain’s currency can be burned by the miners. The more coins you are able to burn, the better chances you have in mining the upcoming block.
PoA (Proof-of-Activity):
PoA is a combination of both PoW and PoS. Based on the information of the header, a validators’ group is assigned for signing a new block.
No sooner are the templates signed but the chosen validators, it becomes a block. If the completion of the block is not completed by the validators, a new group is selected. The rewards are divided between the validators and the miners.
Conclusion:
The different platforms that use consensus algorithms are mostly driven by the applications’ type the platform is going to offer.
With each passing day, the blockchains that are already approved are going for a less scalable yet higher throughput model that ensures speedy transactions. It looks like blockchain has a long way to go, and its future is indeed bright.
