Blockchain Consensus Protocols

Consensus Protocols

• Consensus protocols are essential components of Blockchain technology
• They ensure agreement among nodes on the network, preventing any single entity from manipulating the system

Proof of Work (POW)

• POW is a consensus protocol used in Bitcoin and other cryptocurrencies
• It relies on miners competing to solve complex mathematical puzzles to validate transactions and create new blocks

Scalability Aspects of Blockchain Consensus Protocols

• Scalability is a major challenge facing Blockchain technology
• Current consensus protocols, such as POW, can become bottlenecked, limiting transaction throughput and increasing latency

Distributed Consensus

• Distributed consensus is the process of achieving agreement among decentralized systems
• In Blockchain, distributed consensus enables nodes to agree on the state of the network without a central authority

Consensus in Bitcoin

• Consensus is crucial in Bitcoin to prevent double-spending and ensure the integrity of the network
• Bitcoin's consensus protocol, POW, is energy-intensive and has significant environmental implications

Permissioned Blockchains

• Permissioned Blockchains are decentralized networks with restricted access, requiring permission to participate
• Design goals for Permissioned Blockchains include high throughput, low latency, and strong security guarantees

Consensus Protocols for Permissioned Blockchains

• Consensus protocols for Permissioned Blockchains prioritize performance, scalability, and security
• Examples of consensus protocols used in Permissioned Blockchains include Byzantine Fault Tolerance (BFT) and leader-based consensus algorithms