Blockchain is a decentralized network that doesn’t need any central authority to look after the transactions. Blockchain is a highly secure ledger that ensures transparency, privacy, and immutability. Even in the absence of any central authority, consensus protocol makes it possible for the blockchain to ensure confidentiality, security, and identity.
The consensus algorithm is a systematic process that drives all the network peers to a mutual agreement concerning the denaturalized leger’s actual state. Once after all the network members verify the source of transaction;1 and its validity, the transaction reaches success. This process establishes trust and helps in achieving reliability among the network of unknown peers.
Consensus protocol aims to achieve some of its core objectives, including establishing joint agreement, co-operation, mutual trust, equal rights, and, most importantly, the compulsory participation of all the pears and nodes. The ultimate goal of all this process is to reach a joint agreement upon which all the network members agree.
Let’s have a look at some of the most known consensus algorithms.
- Proof of Work (PoW)
- Proof of Stake (PoS)
- Proof of Important (PoI)
- Proof of Burn (PoB):
- Proof of Elapsed Time (PoET)
- Delegated Proof of State (DPoS)