One of the biggest promises of blockchain is that it is a trustless system that uses the community to help verify that transactions are genuine. Different networks use different methods, and these methods are called consensus protocols. So what is Consensus Protocol in blockchain? How does it work? In this article, we will discuss the Consensus Protocol and its types of them.
What is Consensus Protocol in blockchain?
Blockchain technology is a decentralized and transparent network in which no corporate body or government controls or verifies transactions. However, in the process of applying blockchain technology, there will be many challenges and problems, among which how to design a suitable consensus protocol is a big problem. The consensus of the blockchain is that all nodes maintain the same distributed ledger.
Therefore, anyone can submit information to be stored on the blockchain, so it is important that there is a process in place to ensure that everyone agrees on what information is added and what information is discarded. These rules are essentially called consensus protocols.
The purpose of a consensus protocol is to reach consensus among participants on what the blockchain should contain at a given time, including new blocks. Terms used to describe consensus protocols in the context of include blockchain technology "Proof of Work" or "Proof of Stake" ".
How does Consensus Protocol work?
The consensus protocol at the core of a blockchain network provides a specific method of verifying that a transaction is genuine. It provides a way to review and confirm what data should be added to blockchain records.
Since blockchain networks generally do not have a central authority to decide who is right and who is wrong, all nodes on the blockchain must agree on the state of the network, following predefined rules or protocols.
A friendly fact is that for Bitcoin, the consensus protocol is Proof of Work (PoW), other types of consensus protocols include Proof of Stake (PoS) and Proof of Authority (PoA).
Here are the types of Consensus Protocol:
- Proof of Work (PoW)
- Proof of Stake (PoS)
- Delegated Proof of Stake (DPoS)
- Transaction as Proof of Stake (TaPoS)
- Delegated Byzantine Fault Tolerance (dBFT)
- Casper
- Proof of Importance (PoI)
- Proof of Elapsed Time (PoET)
- Proof of Burn (PoBr)
Conclusion
I hope this article will cover all your concerns about what is Consensus Protocol in the blockchain. PoW is effective for projects that require crypto mining. PoS is more suitable for transaction verification, DPoS is more suitable for transparent voting systems, dBFT is more suitable for transaction finality, PoI is more suitable for preventing hoarding, PoBr is more suitable for reducing the circulation of coins, and PoET is more suitable for equality between participants.
