Everyone engaged in the crypto space must be heard about blockchain consensus, at least Proof of Work(PoW) and Proof of Stake(PoS). There is much more consensus other than these two.

What is consensus and how many types are there?

a thread 🧵

👇

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What is blockchain consensus?

The simple word meaning of consensus is a way of reaching an agreement in a group. The same definition applies to the blockchain consensus too. A method by which all the peers in a blockchain reach an agreement about the real-time state of the distributed ledger. It increases the trust between nodes.

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Now let’s dive into different types of consensus models briefly

1 ) Proof of Work ( PoW )

1st blockchain consensus introduced by bitcoin

This is a method in which individual nodes called miners use dedicated hardware to solve and verify transactions through a process called mining.

For example Bitcoin mining.

2 ) Proof Of Stake ( PoS )

In PoS the network selects random validators who staked a specific amount of coin according in proportion to their quantity of holding.

It is energy efficient as it doesn’t need hhig-end hardware for validation. This mechanism can punish a bad actor by cutting a percent of their staked collateral.

Eg : Eth2.0, Solana

3 ) Delegated Proof of Stake (DPoS)

It is an advancement over PoS. It requires participants to stake a certain amount of coins to participate in the validation . But instead of validating themselves, they outsource this work to a delegate. It is still in its infant stage.

Eg. Tron , Cosmos , EOS

1. Leased Proof of Stake ( LPoS )

Again it is another version of PoS in which token holders lease their tokens to full nodes and earn rewards proportional to the leased amount. The control of the tokens will still be with the owner not with the node.

Eg . Waves

5 ) Proof of Elapsed Time ( PoET )

In PoET nodes are selected randomly like a lottery style. To win the new block nodes have to wait a certain amount of time that is randomly decided.

The main use case for proof of elapsed time is Hyperledger Sawtooth, a permissioned blockchain designed for enterprises by Intel.

6 ) Proof of Burn ( PoB )

In PoB consensus participants burns a certain amount of coins to participate in the validation. The amount of coin burns shows the mining power of the participant. More coins more mining power and more rewards.

7 ) Proof of Capacity ( PoC )

It enables a participant to participate in the mining according to their hard disk capacity. This process of dedicating storage space for validation is known as plotting. Larger the storage space larger the reward.

Eg. Burst coin , storj

8 ) Proof of Importance ( PoI )

In PoI validators gets chance according to the number of transactions they have completed in corresponding coin.

The more transactions are made to and from a participant’s wallet, the higher the rewards.

9 ) Proof-of-Weight (PoWeight)

It is a blockchain consensus technique that assigns a 'weight' to users based on the amount of cryptocurrency they own. When a transaction is completed the network assembles a committee of random network members and assigns each member a ‘weight’ according to how many coins they are holding.

Eg :algorand , filecoin

10 ) Proof of Activity ( PoA )

It is a combination of proof of work and proof of stake to eliminate flaws in both consensuses. In this consensus, mining begins like normal PoW. But blocks being mined contains no transactions but instead templates with header information and the mining reward address

Once it is completed it changes to PoS. The network selects random token holders to sign the blank block created by PoW participants.

Eg. Decred ,Espers

There are a lot of other consensus mechanisms like Practical Byzantine Fault Tolerance ( PBFT ), Simplified Byzantine Fault Tolerance ( SBFT ), Delegated Byzantine Fault Tolerance ( DBFT ) etc which I will cover later.

Everyone engaged in the crypto space must be heard about blockchain consensus, at least Proof of Work(PoW) and Proof of Stake(PoS). There is much more consensus other than these two.

What is consensus and how many types are there?

a thread 🧵

👇

🧵1/

What is blockchain consensus?

The simple word meaning of consensus is a way of reaching an agreement in a group. The same definition applies to the blockchain consensus too. A method by which all the peers in a blockchain reach an agreement about the real-time state of the distributed ledger. It increases the trust between nodes.

🧵2/

Now let’s dive into different types of consensus models briefly

1 ) Proof of Work ( PoW )

1st blockchain consensus introduced by bitcoin

This is a method in which individual nodes called miners use dedicated hardware to solve and verify transactions through a process called mining.

For example Bitcoin mining.

2 ) Proof Of Stake ( PoS )

In PoS the network selects random validators who staked a specific amount of coin according in proportion to their quantity of holding.

It is energy efficient as it doesn’t need hhig-end hardware for validation. This mechanism can punish a bad actor by cutting a percent of their staked collateral.

Eg : Eth2.0, Solana

3 ) Delegated Proof of Stake (DPoS)

It is an advancement over PoS. It requires participants to stake a certain amount of coins to participate in the validation . But instead of validating themselves, they outsource this work to a delegate. It is still in its infant stage.

Eg. Tron , Cosmos , EOS

1. Leased Proof of Stake ( LPoS )

Again it is another version of PoS in which token holders lease their tokens to full nodes and earn rewards proportional to the leased amount. The control of the tokens will still be with the owner not with the node.

Eg . Waves

5 ) Proof of Elapsed Time ( PoET )

In PoET nodes are selected randomly like a lottery style. To win the new block nodes have to wait a certain amount of time that is randomly decided.

The main use case for proof of elapsed time is Hyperledger Sawtooth, a permissioned blockchain designed for enterprises by Intel.

6 ) Proof of Burn ( PoB )

In PoB consensus participants burns a certain amount of coins to participate in the validation. The amount of coin burns shows the mining power of the participant. More coins more mining power and more rewards.

7 ) Proof of Capacity ( PoC )

It enables a participant to participate in the mining according to their hard disk capacity. This process of dedicating storage space for validation is known as plotting. Larger the storage space larger the reward.

Eg. Burst coin , storj

8 ) Proof of Importance ( PoI )

In PoI validators gets chance according to the number of transactions they have completed in corresponding coin.

The more transactions are made to and from a participant’s wallet, the higher the rewards.

9 ) Proof-of-Weight (PoWeight)

It is a blockchain consensus technique that assigns a 'weight' to users based on the amount of cryptocurrency they own. When a transaction is completed the network assembles a committee of random network members and assigns each member a ‘weight’ according to how many coins they are holding.

Eg :algorand , filecoin

10 ) Proof of Activity ( PoA )

It is a combination of proof of work and proof of stake to eliminate flaws in both consensuses. In this consensus, mining begins like normal PoW. But blocks being mined contains no transactions but instead templates with header information and the mining reward address

Once it is completed it changes to PoS. The network selects random token holders to sign the blank block created by PoW participants.

Eg. Decred ,Espers

There are a lot of other consensus mechanisms like Practical Byzantine Fault Tolerance ( PBFT ), Simplified Byzantine Fault Tolerance ( SBFT ), Delegated Byzantine Fault Tolerance ( DBFT ) etc which I will cover later.