You have heard a lot in the last several years about how blockchains would revolutionise business and financial transactions. Well, today’s various blockchains and the team behind them are not just all about talk. Each day, we can see how the cryptocurrency industry is developing, thanks to the blockchain technologies, which serve as great support and core for known cryptocurrencies like Bitcoin, Ethereum, and Cardano to function. To start trading them, visit Bitcoin Profit.
Bitcoin, as we all know, is the world’s first decentralised cryptocurrency and still the world’s largest cryptocurrency. It records transactions in a distributed ledger which we commonly refer to as a blockchain. Bitcoin and several other cryptocurrencies are powered by blockchain technology, which is effectively a database. It is decentralised, with peer-to-peer nodes all around the world powering it. Its decentralised nature is protected, and the validated ledger’s contents are ensured with the help of Bitcoin’s Proof-of-Work (PoW)—a consensus mechanism.
A consensus mechanism is any of a variety of techniques used to create an agreement (or ‘consensus’, as the name implies), trust, and security across a decentralised computer network. The consensus mechanism’s only purpose is to allow nodes to interact with one another and give a shared set of verified transactions that may be put to the ledger. This is intended to prevent unethical miners from submitting fake transactions and blocks.
Proof-of-Work (PoW) and Proof-of-Stake (PoS) are the most well-known in this category. However, like the other methods, PoW and PoS have concerns to address, which inspired many developers in the industry to create more consensus mechanisms. In this article, we will explore a few giant cryptocurrencies that employ unique consensus mechanisms.
Solana: Proof-of-Stake (PoS) and Proof-of-History (PoH)
Solana is well-known in the cryptocurrency community for the blockchain’s very fast processing rates. It is also a one-of-a-kind event in the blockchain industry due to its use of two consensus processes. Proof of History is the central invention that underpins the Solana Network, and it is precisely what the name implies – proof of historical or previous events.
Using PoH, it may construct a historical record that shows an event that occurred at a certain point in time. The PoS consensus, on the other hand, is used to keep track of the PoH processes and validates each block sequence that is generated.
Polkadot: GRANDPA and BABE
GRANDPA stands for GHOST-based Recursive Ancestor Deriving Prefix Agreement, while BABE stands for Blind Assignment for Blockchain Extension. These are two consensus protocols employed in Polkadot, and they are also known as hybrid consensus.
GRANDPA is intended to provide better and faster assurances on the finality of blocks, especially that they cannot be reversed once some Byzantine agreement procedure has occurred. BABE is the block production method that determines the authors of new blocks via running across validator nodes. Polkadot combines these two techniques to enable faster block production while also allowing the slower finality mechanism to operate in a separate process to finalise blocks without compromising transaction stalling.
Ripple: Practical Byzantine Fault Tolerance (PBFT)
Each ‘general’ controls an internal state in the PBFT process, which is a continuous information status. A general uses the message in conjunction with their internal state to initiate a computation process after receiving a message. This message is combined with their internal state to do computation or action.
Afterwards, this computation process instructs that individual ‘general’ on how to respond to the message in question. Then, once he has made his own choice regarding the new message, that ‘general’ informs all of the other ‘generals’ in the system of his decision. The consensus decision is achieved according to the given total decisions by all generals.
Based on the notion of PBFT, Ripple Labs uses this method as part of its underlying protocol. Other crypto projects that use this consensus mechanism are Stellar and Hyperledger.
No Financial Advice
This article is only to educate our readers. The information supplied should not be used to make decisions on cryptocurrency use, legal issues, investments, taxes, cryptocurrency mining, exchange use, wallet use, or anything else. When it comes to investing in cryptocurrencies, we strongly advise you to further your research and seek the counsel of a certified financial expert.
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