Introduction to Different Consensus Algorithms in Blockchain

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1. What Is a Consensus Algorithm?

Consensus (often discussed alongside "Consistency") refers to the process where multiple nodes in a distributed system agree on a specific proposal (e.g., transaction order, key-value pairs, or leader election). Unlike consistency—a broader term describing the state of data across nodes—consensus ensures alignment on decisions.

Key points:

2. Consensus Algorithms in Blockchain

Blockchain’s decentralized nature distinguishes it from traditional distributed systems (e.g., Alibaba Cloud). Public chains like Bitcoin and Ethereum face Byzantine faults, requiring trustless consensus to maintain a unified ledger. Without consensus:

Core Roles:

3. Key Considerations for Consensus Design

Public chains (e.g., Ethereum) must address:

  1. Network Challenges: High latency/packet loss (vs. internal clusters).
  2. Node Instability: Random joins/exits or crashes.
  3. Decentralization: No master nodes (unlike Hadoop/Spark).
  4. Byzantine Faults: Malicious nodes.

CAP Trade-off:

👉 Explore how consensus powers blockchain networks

4. Mainstream Consensus Algorithms

1) Proof of Work (PoW)

2) Proof of Stake (PoS)

3) Delegated PoS (DPoS)

👉 Learn about DPoS in action

4) Practical Byzantine Fault Tolerance (PBFT)

5) Paxos & Raft

5. Choosing the Right Consensus Algorithm

ScenarioAlgorithmWhy?
Public ChainsPoW/PoS/DPoSByzantine tolerance; scalability.
Consortium ChainsPBFTBalanced performance + Byzantine resistance (small node sets).
Private ChainsPaxos/RaftHigh trust among nodes; no Byzantine faults.

FAQs

Q1: Can PoW and PoS be combined?
A: Yes (e.g., Ethereum’s hybrid Casper FFG), but requires careful incentive alignment.

Q2: Why is PBFT unsuitable for large networks?
A: Message complexity grows quadratically (e.g., 100 nodes → 10,000 messages per round).

Q3: How does DPoS prevent delegate cartels?
A: Voting incentives and rotation mitigate collusion (e.g., Bitshares’ reward penalties).

Q4: Is Raft truly "simpler" than Paxos?
A: Yes—it uses a strict leader model and fewer states, easing implementation.

Q5: Can PoS replace PoW entirely?
A: Debate ongoing. PoS reduces energy use but introduces new attack vectors (e.g., long-range attacks).

Q6: What’s the biggest hurdle for consensus adoption?
A: Balancing decentralization, security, and scalability (the "blockchain trilemma").


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