CRYPTO ACADEMY SEASON2 WEEK5 ASSIGNMENT POST FOR @alphafx by @jimah1k

Hello guys

It’s another week of this seasons crypto academy in this weeks assignment am going to be talking about stellar consensus protocol

What is Stellar consensus protocol?

Before I start explain what it is let me define some key terms.
CONSENSUS in the lane man language simply means acquiring agreements across many validators in a network.

PROTOCOL is a system of procedures governing the achievement of a successful consensus.

STELLAR CONSENSUS PROTOCOL

is a decentralised computing networks that uses consensus outcome to make decisions. Stellar consensus protocol is basically the consensus protocol used in the stellar payment network.
The stellar payment methods of the stellar lumen is a decentralized system for the transfer of digital currencies between any country currency. The stellar lumen was created by Jed McCaleb in 2014 and a year later the protocol of the stellar lumen was upgraded with a new consensus algorithm and the new algorithm uses the stellar consensus protocol which was created by David Mazieres. For a transaction to go through in Stella consensus protocol they go through quorum slices and three things need to happen before they can be validated namely voting, accept, and confirm. When you initiate a transaction a node goes to the network to for approval it is approved by other nodes when the network is successfully a transaction is approved.
The method of voting for the consensus is a federated voting.

The following are some advantages of stellar consensus protocol;

ADVANTAGES

1. Stellar consensus protocol is of the utmost important. Stellar consensus protocol has a high efficiency by using a stellar grant protocol instead of the proof of work in relation to transactions verification.
2. The transactions cost using the stellar consensus protocol is far less compared to the others.
3. It also provides decentralized liquidity exchanges because they are fast.

The following are some disadvantages of stellar consensus protocol;
Although the stellar consensus protocol is essential, it also has it share of problems.

DISADVATAGES

1. For instance, when a transaction is confirmed through the nodes, they are not remunerated.
2. It also covers 1% of the annual inflation on the platform

SIMILARITIES BETWEEN POW AND SCP

• The two are both purely decentralized platforms meaning no involvement of any third party
• They both make sure that users don’t spend money they don’t have is spend twice

Unlike proof of work stellar consensus protocol has faster transaction speed also to starting up SCP is cheaper than POF.

FEDERATED VOTING

Federated voting is a method in stellar consensus protocol for finding out whether a network of participants can agree on a proposal. In federated voting, each node must choose one of potentially values as the outcome of that round.
On the Stellar network, faults come in the form of malicious nodes. Stellar can provide safety because participants in its system can continue to vote for their desired outcome until consensus is reached.
On the stellar network there are for properties which are a decentralized control system, low latency, trust and security.

Lumens

Lumen is a digital currency developed by the stellar development foundation. Lumen can be used be used by traders on the stellar network which connects payment systems and users to facilitate low cost transaction. Lumens are built in tokens in stellar that plays a special role in the network. The need for the use of lumens arose as a result of the stellar’s ledger system because it’s easy to use.

KEY TERM USED IN SCPs

Federated Byzantine agreement

This agreement is said to be reached when users from all over the world agree on a solution on a problem for this to be achieved a required number of nodes is needed before an agreement can be reached this is referred to as quorum slice.Nodes have the liberty to choose from the users they trust since the platform is purely decentralized

Advantages of Byzantine agreement

• open membership
• No third parties involved in transactions since its decentralized
• freedom to choose whom they trust

QUROUM

In FBA there is no recommended validation list chosen by a center authority since it’s decentralized rather each validators choose the other validators they trust the list of trusted validators are referred to us a quroum slice. The quorum slices of each validators overlap each other forming a quorum. Any one can participate in consensus. Quorum slices transfer the information on voting to all parts of the network.

CONCLUSION

I just want express my deep thankfulness to @alphafx for the opportunity to be able to learn about this important lecture and I have to say I have really earned some more knowledge on online crypto and transactions and am really grateful.