The difference between consensus algorithms in blockchains and the power of Heta Consensus
The foundation of blockchain is the consensus algorithm. It’s the most important feature which affects the performance, throughput, and scalability within any blockchain. We will focus on analyzing the pros and cons of the current blockchains consensus algorithms and then point out a new platform that breaks the blockchain limitations.
There are mainly four methods of finding consensus in a blockchain:
• Using practical Byzantine fault tolerance algorithm method (PBFT)
• Using the proof-of-work algorithm(PoW)
• Using the proof-of-stake algorithm (PoS)
• And the delegated proof-of-stake algorithm (DPoS).
Proof of Work (PoW)
Example: Bitcoin and ethereum. It works by using “hash function” to create conditions under which a single participant is the only one permitted to announce their conclusions about the information submitted. These conclusions can then be independently verified by all other participants within the system. The process of searching for valid ‘hashes’ is known as ‘mining.’
• Pros: First consensus algorithm and totally decentralized.
• Cons: Consume a lot of energy and low throughput.
Proof of Stake (PoS)
For example nxt and Peercoin (PPC). May 2017, ETH refers to the process of completely switching from a PoW to a PoS system. It works in a similar way such as the POW system. POS replaces the hash feature function calculation by adding a digital signature which aims at proving ownership of the one’s stake. The network will select you to approve new messages basing on your proportional stake in the network. In the peer coin if you are rewarded with new peercoins in a process which is known as minting.
• Pros: there is High throughput
• Cons: There is a nothing-at-Stake problem. It creates a centralized system by rewarding those who are deeply involved in the network.
Delegated Proof of Stake (dos)
For example, Bitshares. This works based on the same principals as the POS system. The only difference is that you choose an overarching entity to represent your portion of a stake in the system.
• Pros: There is High throughput
• Cons: It consumes a lot of time to finalize and make correction of the chain in case if one node fails to generate a block.
Byzantine Fault Tolerant (BFT)
For example, Hyperledger, Stellar, and Ripple. These work in such a way that when a peer receives a message, this peer uses that message in conjunction with its internal state to execute a computation or operation. This computation in turn orders that peer what to think of the message in question and directs the peer what to do about the message. After it reaches its individual decision, that peer shares the decision with all the peers in the system. A consensus decision is reached based on the total decisions submitted by all peers.
• Pros: High throughput that requires less effort than other methods. The chain finalizes every block.
• Cons: Create heavy workload and network.
Heta Consensus
In comparison with other algorithms is like comparing apples and oranges. Each of the consensuses has its own strength and weakness and better works in a particular purpose. For scalability, block time and throughput and the dPoS and BFT seem to be the best choice. But, there are limits.
HetaChain a new blockchain which is based on dPoS and BFT hybrid consensus algorithm. Also, it has a double verification process to ensure that the block is stable once is added to the chain.
• In every 0.5 seconds, a new block is to be produced where exactly one producer is authorized to produce a block.
• The master node is a node which holds a certain amount of coins. This node has to have received enough votes from stakeholders. Stakeholders are able to vote or unvote for a master node HetaCoins anytime. There a total of 33 master nodes in the system. They the one who is responsible for validating all transactions and producing blocks.
• Under consensus algorithm, you as a stakeholder can vote or unvote for a master node via a continuous approval voting system.
• After voting round, a masternode can produce block in its time slot.
• The random masternode is chosen from the list on masternodes to verify the block production by a masternode. The main reason for choosing the masternode randomly, without following any parameter is because, when choosing randomly, by following probability theory, the probability of a particular node to be chosen is 1/33. This probability helps network trend not to be centralized because of every masternode haan equally probability of being chosen. Also, because every masternode an equal probability and due to the voting process of stakeholder is random too, this helps every stakeholder within the network too has an equal probability of receiving a reward.
• After being chosen, the masternode has to produce new blocks as well as setting blocks’ tag is pre-committed. The masternode will broadcast this block confirmation to the remaining masternodes and then wait for a response. Also, when receiving 2/3 of the masternodes’ acceptance, the new block will change its status to commit.
Website Link: https://heta.org
Whitepaper Link : https://heta.org/docs/HetaChain_whitepaper_en-ver-1.0.pdf
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