Blockchain has consistently made headlines in the past year due to the increasing popularity of cryptocurrencies. While many organizations adopted utilizing cryptos to generate new forms of business. Investors made a lot of money as they saw it as an early advantage. Every crypto runs on a blockchain consensus mechanism. A blockchain consensus mechanism is a mechanism used in blockchain systems to achieve a necessary agreement on the network. This is essential to ensure that all transactions are verified regularly and each node is connected to the same network.
Types of Blockchain Consensus Mechanisms
There is a total of 9 blockchain consensus mechanisms on which different blockchain networks work.
1. Proof of Work
Proof of work mechanism involves miners who solve complicated mathematical puzzles to produce a new block.
2. Proof of Stake
Proof of stake uses a randomized process. The process involves figuring out who gets a chance to produce the upcoming next block.
3. Delegated Proof of Stake
In this process, users can stake their coins to vote for a particular number of delegates to create a new block.
4. Proof of Capacity
The proof of capacity is a method that stores solutions to complex mathematical puzzles in digital storage. And these storage disks then create new blocks.
5. Proof of Elapsed Time
Based on their waiting time, this process fairly and randomly decides who is going to be the producer of a new block.
6. Proof of identity
Proof of identity is a piece of cryptographic evidence for a user’s private key that is cryptographically attached to a specific transaction.
7. Proof of Authority
In the proof of authority mechanism, the identities of validators in the network are at stake.
8. Proof of Activity
Proof of activity mechanism is a hybrid of proof of work and proof of stake.
9. Proof of History
In proof of history, the passage of time between two events is verified by a sequence of cryptographic computation.