Consensus algorithms are a family of algorithms that enable a distributed system to agree on a single value or a set of values among multiple nodes in the system. They are commonly used in decentralized systems like blockchain to ensure that all nodes in the network have the same state.
In a consensus algorithm, a group of nodes work together to come to an agreement on a particular decision. These nodes may have different opinions, and the consensus algorithm ensures that they all converge to the same decision. This agreement must be reached even in the face of malicious actors or faulty nodes in the network.
Some common ones:
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Byzantine Fault Tolerance (BFT): In this algorithm, a group of nodes must come to a consensus even in the presence of malicious actors in the network. Nodes must communicate with each other and reach a common decision to ensure the integrity of the network.
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Proof of Work (PoW): In this algorithm, participants in the network compete to solve complex mathematical problems to create new blocks and verify transactions. The first node to solve the problem is rewarded with a new block, and other nodes can then build on top of that block.
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Proof of Stake (PoS): In this algorithm, participants hold a stake in the network, which they use to vote on the validity of transactions. Nodes with a higher stake have more voting power and are more likely to be chosen to validate the transaction.
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Delegated Proof of Stake (DPoS): This algorithm is similar to PoS, but instead of all nodes having an equal say, stakeholders elect a smaller group of nodes to validate transactions on their behalf.