The success of the blockchain as the underlying technology for digital currency (cryptocurrency) has opened the possibility for its use in other application domains. The main advantage of blockchain for its potential use in other domains is inherent security mechanisms and immunity to different attacks. Blockchain relies on consensus methods to approve new data. Most of the consensus methods currently used for different cryptocurrency blockchain require high computational power and thus are not appropriate for resource-limited systems.
There are already hundreds of Blockchain Start-ups, all trying to attract the same talent, but organizations are faced with basic talents that develop more slowly than demand grows. Blockchain technology has several Algorithms and Consensus that are running, such as (DPOS) Delegate Proof Of Stake as used by the Vexanium Blockchain, POW (proof of work), or POS (Proof of Stake).
A consensus algorithm is something that makes a blockchain consensus sequence different from one another. As is the case with the blockchain network where millions of people are in the same pool. So why don’t they ever interfere with each other or bump into each other? The answer is that in the architecture of a blockchain network design the architecture has been designed (smart) and with this algorithm the main consensus is the essence of architecture.
Consensus (consensus) according to the Indonesian dictionary is an agreement and the algorithm is a procedure for calculation, data processing, and automatic reasoning with the Mathematical Method, so in this case it is an Automatic Mathematical Procedure for reaching an Agreement or in the technical sense is the decision making process for groups, where individuals from groups build and support decisions that work best for the whole. This is a form of resolution where individuals need to support the majority’s decision, whether they like it or not.
There are so many types of Blockchain Consensus Algorithms that Run on the Blockchain but there are 3 Popular consensus that we must learn, namely POW, POS and DPOS, although there are still many other consensus but the 3 consensus remains the most effective proven to be used in various Blockchain to date
1. Proof of Work (POW)
POW or known as bitcoin consensus As the name suggests the proof of work algorithm requires computing work to decode the code to mine a block distributed in a ledger (block). Miners or PoW Miners try a lot of hash experiments, so that more computing power hash means more experiments per second. In this case Miners with high hash rates have more opportunities to find the correct solution for the next block (in other words hash block). The PoW consensus algorithm ensures that the Miner can only validate transactions on new blocks and add them to the blockchain if the nodes scattered in the network reach consensus and agree that the block hash provided by the miners is a valid Proof of Work.
This POW algorithm was first introduced by Cynthia Dwork and Moni Naor in 1993, then in 2009 it was only implemented by Markus Jakobsson’s coin shell awner.
2. Proof of Stake (POS)
The Proof of Stake consensus algorithm began to be developed in 2011 and is prepared to replace the PoW algorithm with a more efficient concept, a mechanism where new blocks are validated by Miners / Validators or Producers based on Stake Holders (How Many Coins owned by stakeholder holding coin holders the blockchain), the validator of each block (also called the maker),. In other words, the power to choose is proportional to the stake it has. one interesting variant of POS is Delegated Proof-of-Stake (DPoS)
3. Delegate Proof Of Stake (DPOS)
DPOS (Delegate Proof of Stake) or Proof of Stake delegated or using a democratic voting system such as, DPOS was discovered by a Blockchain developer named Dan Larimer, founder of Blockchain Bitshares, Steem and Eos, Vexanium-Based Blockchain also uses consensus (DPoS) to select active Blockproducers who will be authorized to validate valid blocks in the Blockchain network.
But on the Vexanium Blockchain the DPOS process takes place at Layer 2, this is only half of the Vexanium consensus process. The other half is involved in the actual process of confirming each block to be final (irreversible), which is done by asynchronous byzantine fault tolerant (aBFT). Therefore, there are two layers involved in the Vexanium consensus model:
Layer 1 – Native Consensus Model (aBFT).
Layer 2 – Delegate Proof of Stake Consensus (DPoS).
You can also read with the Details type of Consensus Blockchain type
Of the several types of Consensus above, this consensus algorithm makes the nature of the blockchain network so versatile. Indeed there is no consensus blockchain algorithm that can claim it to be perfect or the best consensus, each consensus has its own advantages. But it is the beauty of Blockchain technology that is different for the sake of finding an agreement (consensus) with mathematical algorithm methods that are constantly evolving.