DO you know the Consensus Algorithm ?
What are the different types of Consensus Algorithm in blockchain technology?
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DO you know the Consensus Algorithm ?
Saqib Raza
There are three main types of consensus algorithm.
1> Proof-of-Work(PoW)
2> Proof of Stake(PoS)
3> Delegated Proof of Stake(DPoS)
Proo-of-Work(PoW): Proof-of-Work(PoW) is used by the most popular cryptocurrencies out there. Bitcoin, Ethereum, and Litecoin use it. It works by solving complex mathematical problems. The hash needs to be solved for the block to be mined. Once it is done, the transaction is validated, and the consensus is made.
Proof-of-Stake(PoS): Proof-of-Stake(PoS) works by staking coins. The nodes need to stake a minimum amount of coins to become part of the consensus network. Once they become part, they actively take part in making decisions on the network. Unlike Proof-of-Work, PoS doesn’t require huge computational power, and hence power.
Delegated Proof-of-Stake(DPoS): Delegated Proof-of-Stake is a centralized approach to a blockchain network. In this consensus method, the stakes choose delegates which in turn validate the transactions.