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August 23, 2018, 09:55:30 PM
Last edit: August 23, 2018, 11:38:23 PM by aminurrahaman |
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I think everyone in this forum should know that "What is Mining/Consensus Mechanism?", but if you don't know that then simply google this and you will find your answer.
I am just discussing about the types of Consensus Mechanism.
Types of Consensus Mechanism:-
PoW (Proof of Work):- PoW is a consensus strategy used in Bitcoin network. It requires a complicated computational process in authentication. In PoW, each node in network is calculating a hash value of the constantly changing block header. The process of mining is extremely computation-intensive, so having a high hashrate is the key for miners to calculate the hash, thus getting the rewards. PoW is completely decentralized, free to access, but mining causes a lot of waste resources, so consensus needs a long period, which is not suitable for commercial applications.
Example:- Bitcoin, Ethereum and Litecoin.
PoS (Proof of Stake):- PoS is an energy-saving alternative to PoW. Instead of demanding users to find a nonce in an unlimited space, PoS requires users to prove the ownership of the amount of currency because it is believed that users with more currency would be less likely to attack the network. There’s no block reward in PoS. The staker’s rewards are only the transaction fee. Because of lower energy-intensive compared to PoW.
Example:- Nem, Dash and Peercoin.
DPoS (Delegated Proof of Stake):- Similar to PoS, miners get their priority to generate the blocks according to their stake. The major difference between PoS and DPoS is that PoS is a direct democratic while DPoS is representative democratic, that means coin holders can use their balance to elect a list of nodes to be possibly allowed to add new blocks of transactions to the blockchain. Coin holders can also vote on changing the network parameter. Delegated Proof of Stake (or DPoS) presented by University of Michigan researchers Eric Wustrow and Benjamin Vander Sloot.
Example:- EOS
PBFT (Practical Byzantine Fault Tolerance):- PBFT is a replication algorithm to tolerate Byzantine faults. Hyperledger utilizes the PBFT as its consensus algorithm since PBFT could handle up to 1/3 malicious byzantine replicas/nodes. PBFT needs to know the identity of each node to select an accountant for each block, and nodes cannot join or exit arbitrarily, so PBFT is always used in private or permissioned Blockchains. It’s high efficiency, but nodes need to fully trust each other. A high hashrate is not required in this process because PBFT relies on the number of nodes to confirm trust. Once enough responses are reached, the transaction is verified to be a valid transaction.
Example:- Stellar, Hyperledger, and Ripple.
DAG (Directed Acyclic Graphs):- In DAG, there is no process for packing blocks, but users confirm each other, which can greatly reduce transaction confirmation duration. DAG is a finite directed graph with no directed cycles. With DAG, transactions can be running on different chains simultaneously. This might be the future of instant transactions with a minimum transaction fee.
Example:- Nano, Byteball and IOTA.
There are also lots of different types of Consensus Mechanism like PoB (Proof of Burn), PoI (Proof of Identity), PoET (Proof of Elapsed Time), PoA (Proof of Authority), PoC (Proof of Capacity) and others, but uses of this types of Consensus Mechanism is very rare so that's why I am not discussing about this now.
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