Consensus algorithms are a fundamental aspect of the blockchain. They are mechanisms designed to validate, confirm and aggregate transactions to the blockchain, which in turn allows the integrity and security of the information stored on the blockchain to be maintained.
There are many types of consensus algorithms, each with their own advantages and disadvantages. Some of the most popular ones are proof of work, proof of stake, proof of authority, among others. However, two of the most famous and widely used algorithms are proof of work and proof of stake.
Proof of work is the first to become popular, emerging along with the emergence of Bitcoin in 2009. In this algorithm, miners have to solve a cryptographic puzzle in order to validate a block. This puzzle consists of guessing a number that makes the Hash of the block meet a series of properties, which is a very complicated process that can only be solved by brute force. This means that users who want to validate have to spend a number of computational resources to be able to participate in the network and to be able to validate blocks.
Although this algorithm is quite secure and prevents anyone from validating a block easily, it has the disadvantage that it is very expensive and requires high energy consumption. For this reason, alternative algorithms were created, such as proof of stake.
Proof of stake is one of the most widely used algorithms today. In this algorithm, for the validation of a block, certain miners are randomly chosen, and this choice depends on the stake made by the miners in the network. The miners bet a number of cryptocurrencies or tokens and, depending on the number of tokens bet, one has more or less probability of being decided as validator.
The cryptographic proof in proof of stake is much less complex than in proof of work. Instead of spending large amounts of computational resources, miners stake their own assets on the network. This means that by contributing coins to the network, one can become a validator without having to consume so much energy.
In conclusion, consensus algorithms are essential in blockchain technology, there are many variations and each of them presents its own pros and cons. It is important to study which one is the most appropriate for each network and which one best fits your goals and requirements.
References:
YouTube video on the GREEN channel
