Steemit Crypto Academy Homework Post for @alphafx

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Hello everyone and welcome to my homework post for this week's on Consensus Algorithm. Out of the given options, I would be writing on proof of elapsed time. But before that,

What is Consensus Algorithm?

Consensus Algorithm is a mechanism used by blockchain network networks to reach an agreement on block chain additions, validity of blockchains and the state of blockchains.

Types of consensus algorithm include; Proof of Burn (PoB), Proof of stake (PoS), Proof of work (PoW), Proof of Capacity (PoC), Delegated Proof of Stake, Proof of Elapsed Time, Proof of Importance, among others.

What then is Proof of Elapsed Time (PoET)?

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Proof of elapsed time (PoET) consensus algorithm was developed in 2016 by Intel Corporation. It is a consensus algorithm that addresses and prevents the high energy consumption issue of the Proof of Work (PoW).

It is used in blockchain networks where user identity is known. This blockchain is known as permissioned blockchain.

PoET allows blockchain networks to determine mining rights and block winners by keeping its processes more efficient using a fair lottery system.

The PoET mechanism is based on fairness using a lottery system. It is done by boosting the possibility of a participant winning across a large number of participants. The lottery system gives every single node the chance of equal winning.

How Proof of Elapsed Time Works.

This is grouped into two stages;

⦁ Joining the network by verifying the TEE using Software Guard Extensions (SGX) and

⦁ the mining lottery using the elapsed time.

Each and every participating node in the blockchain network has to wait for a random wait time where that node goes to sleep for that duration. The wait time is generated by the consensus algorithm.

This system is similar to that of PoW but uses less energy since it gives the user's processing power the chance to sleep and can as well perform other tasks during that wait time. However the node with the shortest wait time wakes up the earliest, wins the new block and works first.

The PoET mechanism has to take caution that the winner actually picks a random wait time and not a shorter time. It also needs to be actually certain the winner completes the waiting time.

This is achieved because the PoET mechanism uses the Software Guard Extentions allowing participants to run trusted codes in a safe environment avoiding cheating in the lottery.

Organisations that support the Proof of Elapsed Time (PoET).

⦁ Hyperledger Sawtooth sponsored by Intel Corporations

⦁ Linux project

⦁ IBM

⦁ Ethereum transitioned to a PoET system in 2019 from a PoW.

Differences between Proof of Work and Proof of Elapsed Time.

PoW	PoET
It is very expensive to create candidate blocks	It is cost effective
It uses a lot of energy	It is energy efficient or uses less energy
Requires special mining hardware	Does not require the use of special high tech hardware
The node able to find the hash vale first is the new leader and is rewarded hence does not provide equal opportunity to every node	Promotes fairness and equal opportunity to every node as random wait time is set

Advantages of Proof of Elapsed Time (PoET).

⦁ It consumes less energy.

⦁ It increases efficiency by allowing a miner's processor to sleep but perform other tasks during that waiting time.

⦁ Security is enhanced since the trusted code is run by SGX in safe environments and cannot be tempered by non participants.

⦁ There's control of cost of the consensus process which enables the crypto economy flourish.

⦁ There is transparency in selecting winners since the waiting time is picked randomly.

⦁ Proof of Elapsed time can be used in a permissionless blockchain.

Disadvantages of Proof of Elapsed Time (PoET).

⦁ PoET gears towards centralization. This is due to Intel using SGX developed by Intel. PoET is reliant on Intel as a third party which all blockchain networks are trying to avoid thereby moving it in the direction of centralization.

⦁ The reliance on a specialized hardware's security from Intel.

⦁ As time changes, use of SGX with PoET has become cause for concern.

Conclusion.

From this informative lecture delivered by prof @alphafx, I have learnt what consensus algorithm is and its types. I have leant that Proof of Elapsed Time as a type of consensus algorithm is a fair mechanism developed to address the issue of high energy consumption by PoW. Also, PoET rely on random wait times as a way of promoting fairness.

The development of the SGX has become a cause for concern as depends heavily on Intel making it a third party. This makes it moves toward centralization which isn't ' revolutionary since blockchains seek to be decentralized.

I would like to say a big thank you to prof for this lecture.