What is Consensus Mechanism (Blockchain)
Please read the article down below first so you can get a proper context for the current article.
I Promise it won’t take long.
Definition
- A consensus mechanism is a method that allows network of computers or nodes to agree on a single version of truth without the need for a central authority.
- Well, in simpler term consensus mechanism is basically a validation process or more specifically a tool for validation process.
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Now let’s get back to my article.
Different Type of Consensus Mechanism
I will only give a brief information about all the type of consensus mechanism here. I will provide more details explanation about all of this stuff in a future articles.
Proof of Work (POW)
- This process require miners to solve complex mathematical problem in order to earn reward and validate transaction.
- Obviously, this isn’t done using human brain. Mining process usually consume a lot of energy and most miner mostly use a lot of graphic card to do this mining process.
Proof of Stake (PoS)
- This process usually require investor to stake their crypto in a certain period of time and they will get staking reward if they manage to do it.
- The more you stake your crypto, the more chance it is to be pick to validate a new transaction.
- Staking crypto apply the same principle that were use in dividends stock.
Delegated Proof of Stake (DPoS)
- This type of consensus mechanism is a combination of PoS and voting. It usually work when users vote for a certain trusted validators.
- The validators that get the most votes will then validate transaction and earn a staking rewards.
Proof of Authority (PoA)
- This mechanism allow only authorized entity to validate transaction in a blockchain.
- The authorized entity can be selected from businesses, organization or individual and most of them can be selected using variety of method such as voting, vetting and reputation scoring.
Proof of Burn (PoB)
- This mechanism require users to burn a small amount of crypto to validates a transaction and add a new block inside a blockchain.
- The burning process will remove a small amount of crypto permanently from the circulating supply.
Zero Knowledge Proof (ZKP)
- ZKP is a mechanism that use zero knowledge technology to allow a network of computers or nodes to validates a certain transaction without revealing information such as wallet address, wallet owner and more.
Byzantine Fault Tolerance (BFT)
- BFT is a consensus mechanism that allow a validation process to happen in a blockchain network even though some of the nodes is malicious or faulty.
- BFT is also dividable into more different type of consensus mechanism such as Practical BFT, Tendermint and more.
Delegated Byzantine Fault Tolerance (dBFT)
- This mechanism is a combination of DPoS and BFT consensus mechanism.
- User will vote for a validators to validate a transaction but the system itself is tolerance to a faulty and malicious validators or nodes.
Other
- There might be a lot more consensus mechanism that I haven’t listed yet because this topics is so vast but don’t worry because I will write more about it in a future article.
Thanks for reading and as always keep learning about crypto everyday.
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(DISCLOSURE: This article contain affiliates and referral link for a certain cryptocurrency product or exchanges. This article also is not a financial advice and only for educational purpose.)
