Since the time when computer and networking platforms gained market attention, shared databases have been in use, allowing multiple users to access the stored data. Through the passing of years, a centralized network has evolved, necessitating the need for permission to access the data, leading to the introduction of a consensus mechanism.
In a distributed system like blockchain, achieving consensus is pivotal for maintaining integrity and transparency. This article emphasizes the importance of distributed consensus in blockchain highlighting features, mechanisms, and challenges.
What is Distributed Consensus?
A distributed consensus is a set of rules that helps users or machines coordinate the workings of the system to ensure all the entities collectively agree upon a single value or action despite their differences at the initial stage.
What is the Distributed Consensus in Blockchain?
A system or set of guidelines that all platform users must abide by is known as distributed consensus in blockchain. A distributed consensus mechanism eliminates the need for a central authority to validate and settle the transactions.
Multiple computers are connected to work on the platform and must agree to a common value or action during computation. It prevents the chance of conflicts and maintains integrity within the platform.
Why is Distributed Consensus Important in Blockchain?
- Distributed consensus ensures all the participants or nodes of a blockchain collectively agree upon a common decision or action, which eliminates chances of conflicts and maintains integrity.
- The distributed consensus mechanism enables the smooth functioning of the blockchain network even if any random nodes fail to operate. The system recovers from the issue and continues working smoothly by showing a consistent state.
- Blockchain is a decentralized platform, where each nodes work autonomously. The distributed consensus mechanism collectively coordinates actions to ensure that decisions are not made unanimously.
- The consensus algorithm enables traders to agree on the existing conditions for validating the transactions. The data are decentralized and immutable, adding a layer of security.
- To validate a transaction, a user must agree to the terms and conditions, this not only eliminates the risk of conflict but also helps to maintain integrity.
Working of Distributed Consensus in Blockchain
Blockchain agrees on the legitimacy of transactions throughout the ledger by using distributed consensus.
- Nodes input data from a transaction and send a cross-checking request with its records.
- Once the request is cross-checked, an approval or disapproval report is sent back to the node.
- When a node wants to challenge a record, a network-wide recall is made, and if more than two-thirds of the nodes approve, the transaction is confirmed.
Key Mechanisms of Blockchain-Distributed Consensus
A distributed consensus mechanism is used to maintain security and safety on the blockchain platform.
1. Proof of Stake (PoS)
Proof of Stake is one of the common mechanisms utilized by crypto platforms to maintain the integrity of their blockchain network. This mechanism involves allocating the responsibility for validators in choosing a new block to a participant node, considering the number of virtual currency tokens held.
The other nodes verify the block and add it to the blockchain only when the consensus is achieved. Low cost and low energy requirements are the advantages of the Proof of Stake mechanism. However, incentive hoarding is considered a drawback to the mechanism.
2. Proof of Work (PoW)
The Proof of Work mechanism is adopted by major cryptocurrency networks including Etherium and Bitcoin. A huge network is assigned to verify the workings, and a participant node is designated to analyze them. The higher energy requirement and long processing times limit the potential of the Proof of Work mechanism.
3. Practical Byzantine Fault Tolerance (PBFT)
The Practical Byzantine Fault Tolerance consensus mechanism provides fast confirmation of transactions and also high throughput. It is used in networks with reliable and trustful participants.
4. Delegated Proof of Stake (DPoS)
By employing decentralization, the Delegated Proof of Stake mechanism provides efficiency and governance to the blockchain network.
Challenges of distributed consensus mechanism
The existing complexities and uncertainties in the blockchain network create challenges for attaining consensus.
1. Node failures
Failure of nodes in a blockchain network can cause inconsistencies in the working of the whole system. The consensus mechanisms need to monitor and solve the issue to enable smooth operation.
2. Communication failures
Network partitions cause communication failures. A consensus mechanism needs to ensure smooth communication throughout the platform even when a network partition exists.
3. Asynchronous communications
Asynchronous communication is the delayed or lost communication. Nodes in a blockchain can communicate asynchronously. A consensus mechanism must handle the situation without affecting the timely delivery and accuracy of the messages.
4. Byzantine errors
Malicious behaviour of nodes causes Byzantine errors resulting in disrupted communication.
Also Read: Are Memecoins Risky? Understanding The Hidden Dangers
Bottom Line
The advancements in technology and their impact on digital platforms have necessitated the need for a consensus mechanism. In a blockchain network, the consensus mechanism verifies inputs and outputs to automate transactions, which in turn reduces transaction costs and processing times. Selecting a consensus mechanism suitable for the project can be challenging, one needs to analyze the benefits and drawbacks and choose the best accordingly.