Blockchain has quickly grown into a global platform. The system is decentralized, implying that it has no single authoritative party. Its operation is in real-time, where several transactions on the network are all being validated. The point of this is the determination of the authenticity of the said transaction at that point. This duty is carried out by a consensus algorithm. As is implied in the word, consensus means several people choosing a specific direction in unison. This is the same principle operated on the blockchain network when decisions are to be made about the distributed ledger.
There are certain major types of consensus algorithms being widely used in the cryptocurrency society of today. Among them include the proof of work system and the proof of stake system. The proof of work system is used by major names in the cryptocurrency industry including Bitcoin and Lite coin. While the proof of stake system is majorly used by a dash. Even though these two happen to be the most used systems, they still have certain shortcomings. For the proof of work system, the system was reported to be excessively energy-intensive. The proof of stake system on the other hand is something completely different. Here, its system operates in the line of coin boarding promotion, as opposed to actual spending and circulation. However, with these shortcomings, these systems are still very well used in different trading sites, as the aim of people is simply to make a profit. Following closely to these popularly used systems is the obelisk’s algorithm. In its creation, it was made to solve the problems that its predecessors had. Here, the system makes use of a process called the ’web of trust’. What this process does is to spread the influence across several network nodes and then decisions are made based on the influence score of the nodes. Each of these nodes has a specific number of subordinate nodes which can affect the network.
There are specifically two types of nodes that partake in the execution of this process as a whole. The types of nodes are block generating nodes and consensus nodes. One good thing about the obelisk algorithm system is that the nodes here are taking on each other’s roles depending on what job needs to be done. For starters, block generating nodes are the collectors of new transactions. They further authenticate and verify the transactions before filling them into a new block. Following the blockchain system, this new block is now further added to the network. For the consensus nodes, they store the blocks generated by the other nodes in a different network from the existing blockchain. The system further identifies the block that is filled the most and adds it to the list of possible blocks to be added to the blockchain. When this happens, the node that is the most selected by the other consensus nodes is then closed and attached to the blockchain. However, just as this is a possibility, the opposite is also a possibility. When it happens, the nodes in question will select one of the following actions to execute based on the data available.
- Realign itself with the network.
- Hold its blockchain and select an emergency stop.
- Completely stop participating in the block-making process.
It does without saying that there is no specific assurance that any participating node will be successfully added. This is what brings about a sense of competition making the consensus part of the system integral. It is also a factor that makes it a possible viable alternative for future coins. To ensure that they don’t fall into the problems that most of the top cryptocurrency algorithms are currently experiencing.
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