In part one of this series, we learned that crypto mining is the medium by which transactions within a block-chain network are verified and the ledger is updated.
In this piece we will attempt to discuss some of the various consensus mechanisms that some block-chain networks employ essentially to achieve a safe and efficient system of transaction verification and validation.
One significant distinguishing feature of block-chain networks is the distributed ledger, so called because it is stored across all the computers on the network rather than in one central location as is with fiat currencies. This #decentralized nature of the block-chain networks creates a need to develop a process by which all the computers within the network can agree on the most current correct version of the ledger (reach a consensus). This process is what is known as a consensus mechanism or protocols.
There is a vast number of #consensus mechanisms employed by the several crypto assets in the market to ensure efficient ledger management, however the most popular of them are the Proof of work (PoW) and #Proof of stake (PoS).
The #PoW algorithm requires miners to participate in a race to solve a mathematical equation which usually requires guessing several combination of numbers to determine the one that provides the correct answer -kind of like trying to unlock a safe, before they earn the right to update the ledger. The first miner to solve the equation updates the ledger and is rewarded with either the transaction fees or newly minted #crypto coins while other miners verify the transactions. This consensus mechanism is employed by Bitcoin and a number of other crypto currencies . The PoS module selects the miner to update the ledger based on how the amount of coins in the wallet. A lot of the alternative coins (Alt-coins) that emerged after Bitcoin apply this module to achieve consensus within their net work.
Every consensus mechanism can be said to be a result of an attempt to improve on the efficiency and security of their respective #blockchain networks and as a result will hae both advantages and disadvantages.
So I have listed below a number of consensus mechanisms that pique my interest. This will form the topics for the subsequent installments of the ‘UNDERSTANDING CRYPTO MINING Pt2’ series.
2.2 Proof of Stake (PoS)
2.3 Proof of work (PoW)
2.4 Proof of Elapsed time (POET)
2.5 Proof of Activity (PoA)
2.6 Delegated Proof of Stake (DPoS)
2.7 Federated Byzantine Agreement (FBA).
2.8 Proof of Research (PoR)
The aim is to attempt to understand these mechanisms, to determine their advantages and flaws and analyse them to hopefully get a better knowledge of the risks or rewards that lie within the crypto currencies they represent..
You can get some information from the links bellow or Like and Follow Crypto kenny of #facebook or Stemit
consensus mechanisms explained:(PoW vs PoS)