Blockchain technology introduces the present digital creation of bitcoin works in the peer-to-peer mechanism in the decentralization without the working of central controlling authority. Here the corrupted system from a single point of failure produces an enlightenment question.
“Who makes a decision? If central controlling authority is absent.”
Take, for example, the conventional centralized organization. There is the board of directors who takes the responsibility of running and overseeing the operations. In this blockchain, this is not the case. The blockchain has no such thing as a leader or a group of deciders. It operates in the consensus algorithms to make any decisions.
What are the elements in Consensus?
The voting process has the majority rules without considering the minority, the consensus decision agreed in the group or community which access the decision is good of all. The elements are.
The community of the members comes together to achieve the result and it serves the interest of the community.
In the consensus process, every member of the community is left out in the consensus. Here each and everyone is important.
Every participating member of the community sets their interest, they can work as a team, but they don’t as individuals.
No one can be left out in the consensus processing, each and everyone should take a part in it.
Mechanism of a Consensus:
Decentralization being the core nature of blockchain technology gave birth to the Distributed Ledger Technology or DLT. All these mechanisms utilize DLT which means that all nodes have the same copies of database files which are auto-updated daily.
The nature of the blockchain in the decentralization gave birth to the( DLT) Distributed Ledger Technology. The mechanism of a consensus in a place.
The Consensus Algorithm is:
1.Proof of Stake (PoS)
2.Proof of Work (PoW)
3.Delegated Proof of Stake (DPoS)
1.Proof of Stake (PoS):
PoS has every miner which takes a place in a stake or investment to make a network to support the blockchain. And it gives power to mine which is fully based on the stake placed. Here the selection is random. In this selection process, the miner’s token has to gain weight.
2.Proof of Work (PoW):
Satoshi Nakamoto was the first to use the bitcoin network. The (PoW) Proof of Work consensus algorithm has a huge amount of energy and it has the power to achieve the expensive mechanism. In this verifying transaction, the miners maintain the blockchain to provide computing power. In the word of blockchain, the PoW is a chain of blocks. Here the transaction is transparent, this blockchain stores all the verified transactions.
3.Delegated Proof of Stake (DPoS):
The (DPos) Delegated Proof of Stake is a mechanism that is the way to develop democratization which is applied in the PoS algorithm. The token owner has a verifying transaction. The transaction is faster and it has a higher scalability rate.
The blockchain is dynamic. In these transactions, there are several participants like ( 100 of 1000 of) peoples are involved in this mining to verify and confirm. Here the transactions are authentic and participating nodes have an agreement in the DLT’s robustness.