Unique Blockchain Consensus Models Worth Checking Out in 2022
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
Most people associated with the crypto market are well aware of the fact that any blockchain-based technology, in its essence, involves the use of distributed, decentralized networks that are designed to deliver a high level of immutability, privacy, security, and transparency. This is because there are no central authorities governing the transactions taking place within such a network even though every associated transaction is considered to be completely secure and verified.
This is made possible due to the presence of a ‘consensus mechanism’, i.e. a governance protocol that lies at the heart of any blockchain. Technically speaking, a consensus algorithm is a digital process by which the members of a particular network can come to a common agreement regarding its current state. To put it another way, consensus mechanisms help make blockchain networks more reliable by fostering trust between all of its participants.
From an operational standpoint, consensus protocols ensure that each and every block being added to a blockchain is totally valid and agreed upon by all of the node operators within the network. In this regard, it should be noted that in recent years a number of novel consensus protocols — apart from the conventional proof-of-work (PoW) and proof-of-stake (PoS) — have made their way into the market. In this article we will seek to list out some of these mechanisms. So without any further ado, let’s jump straight into the heart of the matter.
dPoSec (Distributed Proof of Security)
Distributed Proof of Security (dPoSec) is best described as a highly resilient, decentralized assurance framework that also doubles up as a cybersecurity mesh. It is designed to establish/prove device integrity while enforcing context, operational trust and policy adherence — all without the use of a centralized entity or other unwanted intermediaries.
The most prominent project — in fact the inventor — of the dPoSec consensus mechanism is Naoris Protocol, a decentralized system that not only allows for the development of a cyber secure environment for Web2/Web3 services but also helps provide value to nation-states, governance structures, and industries. To elaborate, the protocol is completely community-governed, censorship-resistant and has been built in such a way that it does not compete with existing L1 and L2 solutions.
Third-party blockchains can easily integrate Naoris into their respective frameworks so as to mitigate many of the cybersecurity risks associated with the Web2 ecosystem as well as maximize the integrity of their own validators and nodes. Naoris’ use of the dPoSec consensus ensures that participating network devices can act as cyber secure validators within a decentralized CyberSecurity Mesh. In summation, this consensus model showcases one of a handful of true blockchain use cases out there.
Proof of Authority (PoA)
Best suited for private blockchain networks, Proof of Authority (PoA) is a consensus mechanism that requires validators to stake their identity/reputation instead of tokens. Owing to the fact that validators need to prove their real identity to gain governance rights, they have an inherent incentive in maintaining the reputation of the system. To elaborate, the algorithm hand-picks a select few nodes who are then tasked with validating transactions, building blocks, and maintaining the network.
It is worth mentioning that the PoA algorithm doesn’t require high computational power, thereby eliminating the need for buying expensive hardware. One of the first networks to adopt this algorithm is the POA Network, an open-source framework for smart contracts. Another example is VeChainThor alongside Microsoft Azure, with the latter utilizing the PoA mechanism as part of its Ethereum-powered cloud computing system.
Proof of History (PoH)
One of the youngest consensus mechanisms in the market today, Proof of History (PoH) is an in-built synchronization protocol that helps solve the long standing ‘clock problem’ affecting many blockchain networks today. Most nodes within decentralized networks today have to depend on third party data sources to assign “median” timestamps to the transactions that have been validated by them. In this regard, the PoH algorithm comes pre-built with an ‘internal clock’ that helps bypass this issue completely.
The most popular, and so far only, blockchain to make use of the PoH mechanism is Solana, a scalability oriented, high performance blockchain that has gained a lot of prominence over the past year, so much so that the network’s associated digital currency (SOL) is currently in the top-10 cryptos my total market capitalization. Not only that, the ecosystem features 350+ dApps with more applications making their way into the market everyday.
