In the Blockchain technology space, good consensus algorithms are not always easy to find. However, these algorithms are vital in order to ensure that the distributed ledger will run smoothly and as desired. The algorithms ensure the decentralization fundamentals are applied, we will share a few of these consensus methods with you below.
The different types of Consensus Algorithm?
A consensus algorithm is a process that is made by someone with a computer program coming from computer science sector. This is used in order to achieve an agreement with a single data value among distributed process systems. This is what blockchains use in order to fit perfectly into applications using a ledger framework.
Consensus Algorithms give Blockchains a level of reliability inside a network built on a series of nodes. A transaction that is being set to take place on the blockchain, will put in the algorithm to communicate across the network in a bid to verify if the transaction has been completed. This same process applies to the creation of any new nodes with data on the blockchain, or the synchronization of network devices ensuring that there is consistency from the whole consensus network.
These consensus Algorithms also have to be smart in order to anticipate any breakdowns in the communication with a network. When writing an algorithm the creator must also be aware that there are system processes that could become unavailable and may lose communication as a result.
Algorithms that signal fault-tolerant and work towards achieving a predesignated consensus must be approved by the majority of devices on the network.
The importance of having a Consensus Algorithm
Blockchains are made up of consensus algorithms and are vital to the creation of the network decentralization and commands. A decentralized network will never need a centralized authority in order to make the blockchain work, as this is also needed for the ledger to confirm transactions and data. These smart algorithms make it possible to automatically communicate and verify all transactions on the network.
Blockchains can be dynamic and varied depending on the type of consensus it is using for the network.
The Proof-of-Work (PoW) is being used by the large cryptocurrencies like Ethereum, Litecoin, and Bitcoin as these are the first consensus algorithms to be widely used. The PoW model is known to be resilient and resistant to cyber attacks, as this relies on the computational power of each member on the network in order to solve problems and reach consensus.
The proof-of-service(PoS) consensus algorithm is maintained by a tight level of security while relieving the energy burden on the rest of the network. This kind of algorithm provides a trustworthy and a slightly more environmentally friendly approach to a Blockchain implementation.
Another great algorithm is the Byzantine Fault Tolerance (BFT). It was named after the Byzantine Generals Problem and is based primarily on mass coordination. Creators of this consensus algorithm saw the link between the issues of the Byzantine general and the finding of consensus within a distributed ledger. Some applications require chain cohesion, like with digital assets management platforms, creating a swift communication string between networks can form the cornerstone of a Blockchain.