In recent years, blockchain technology has received supreme attention from academia, industry, and governments all around the globe. It is considered a technological innovation expected to disrupt several application domains touching all parts of our lives. Blockchain technology is a distributed decentralized network used to record any transactions that happen over the network and aims to give immutability and security of data. One of the most significant aspects to understand blockchain’s speed, applications, and potentials are consensus algorithms. The consensus algorithm determines everything from speed, network security, to environmental friendliness. So, what is a consensus algorithm, and why does it play such an important role in blockchain?
Consensus is a distributed computing concept that has been used in blockchain to provide a means of agreeing to a single version of truth by all peers on the blockchain network. Blockchain has changed the way assets are transferred and stored throughout its history. Improvements are made to integrate its function and improve its performance. As the technology is advancing new consensus algorithms are developed every other day that aim to solve the problem of its predecessors. Each consensus algorithm has different characteristics and serves different purposes.
The CreataChain, a revolutionary interoperable blockchain, uses Augusteum Consensus Core as its consensus mechanism. Augusteum core is the new consensus algorithm, which is one of the strongest, secure, and fastest consensus algorithms out there that cannot be compromised by hackers. It is a hybrid consensus mechanism as it is a combination of Delegated Proof-of-Stake and Practical Byzantine Fault Tolerance algorithms. Its hybrid nature provides enhanced scalability and a cost-effective operating system. It is progressive and a modern alternative among the rest of the consensus algorithms.
DPOS was developed as a better and enhanced algorithm in place of Proof of Stake. Delegated Proof of Stake is an electoral process, where coin holders choose their delegates by vote who will be responsible for validating transactions and are rewarded for adding blocks to the blockchain. It promotes decentralization. Anyone can become a delegate and it is no longer necessary to have large mining pools to validate blocks. DPoS has increased blockchain data processing capability allowing transactions to be completed in seconds.
PBFT is a fault-tolerant algorithm. Nodes in a pBFT system are sequentially ordered, with one node being the leader and others referred to as backup nodes. All nodes in the system communicate with one another, with the goal being that all honest nodes will come to an agreement on the state of the system using a majority rule. For the pBFT system to function, the number of malicious nodes must not equal or exceed 2/3 of all nodes in the system in each vulnerability window. PBFT provides high-performance Byzantine state machine replication, processing thousands of requests per second. Byzantine fault tolerance is the ability of a distributed computer network to correctly reach consensus despite malicious nodes in the system failing or sending out incorrect information. The goal of BFT is to protect against catastrophic system failures by reducing the influence of these malicious nodes and allowing higher transaction throughput than the rest of the consensus algorithms.
Augusteum Consensus Core defines the Consensus layer of the blockchain as well as the Network layer of the blockchain. It allows faster transaction commitment and practical interoperability. The Augusteum Consensus Core, with PBFT, becomes fault-tolerant and gives higher transaction throughput and with DPOS, provides better decentralization and increased blockchain data processing capabilities. Thus, forming a one-of-a-kind consensus algorithm that is scalable, secure, and decentralized.
The search for a better consensus mechanism is always ongoing but the properties and qualities that the Augusteum Consensus mechanism is delivering make it a better consensus algorithm than the rest. It improves all the major factors such as cost, efficiency, and scalability, and will lead to some intriguing advancements during the coming months and years. Achieving a balance between the trade-off of decentralization, processing speed and efficiency has always been a problem, but the Augusteum Consensus has solved it. As more use cases for blockchain continue to branch out, it seems highly probable that the CreataChain will grow and evolve with time and continue to outshine the rest.