The Importance of Consensus Mechanisms in Blockchain
For every projects and new innovation that is going on in the digital space is currently making use of the Blockchain technology and which is a very great thing to discover. The Blockchain technology which started in the year 2008 that is around 16 years ago have grown to become a universal template for the digital world. It first started as innovation for bitcoin and now it has even grown beyond the crypto space to cover every sector that one might not have imagine of.
It is hard for you to look for a particular sector and not find Blockchain there. It is virtually everywhere and I am so sure it will just continue to get better and better as the year goes by. Talking about the heart of every Blockchain technology, every Blockchain technology drives on something called consensus mechanism. For many of us, this might actually be a new word and for some of us, we might be aware of it.
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Talking about Consensus Mechanism, I will say it helps to make sure that every nodes run using the Decentralised nature. In fact I can boldly say that Consensus Mechanisms is the heartbeat of every Blockchain technology and that makes it to thrive. Consensus mechanisms as the name implies means a process that allows Blockchain participants to validate every transactions and the state of the network running. With the Blockchain Decentralised nature, we did not need to think about the centralised authority.
Consensus mechanisms is that which allows every network to thrive without the need of something called the centralised authority or middlemen. Most of the consensus mechanisms works in a way that it thrives on something called the computational work. With Consensus Mechanisms, we can have an immutable ledger and this at the end of the day prevents fraud within the network or ecosystem.
Let me briefly talk about the types of Consensus Mechanisms that we have, we have the Proof of work which is called PoW. Proof of Work is mostly used by the crypto giant like Bitcoin as they help to solve transactions and helps them thrive on the Blockchain. This makes use of computational power and energy to thrive. This makes it to be less costly.
We also have the Proof of stake. When we talk about the Proof of stake, it helps as an alternative for the PoW. Then we also have the Delegated Proof of stake which is called the DPoS. This allows token holder to pick some small group of delegates and helps them to validate transactions. With this system, it is much more faster and more scalable than the both PoW and PoS. But it is not mostly used as many people always think DPoS always introduce this centralised nature which is against the standard of the Blockchain technology.
As I conclude, I will like to establish that the consensus mechanisms is the foundation on which the Blockchain technology thrives and I am so sure it will just continue to get better and better. It gives a lot of advantages for the Blockchain technology as example like the security and the Decentralised nature. I am so sure that as the Blockchain technology continues to evolve, the consensus mechanisms standards will also continue to evolve as time goes on.