The blockchain consensus protocol in a blockchain platform has several objectives, including reaching an agreement, collaboration, cooperation, equal rights for all nodes, and mandatory participation of all nodes in the consensus process. As a result, a consensus algorithm seeks to find a common agreement that benefits the entire network. Now we’ll look at the objectives of the blockchain consensus mechanism in detail.
- Unanimous consent
One of the primary goals of consensus mechanisms is to achieve unified agreement. In contrast to centralized systems, where trust in authority is required, users in a decentralized system can operate even without developing trust in one another. The protocols embedded in the distributed blockchain network ensure that the data involved in the process is true and accurate and that the public ledger status is in real-time.
- Align Economic Rewards
For a transaction to go through in a blockchain, a group of nodes must agree that the transaction is valid (consensus mechanism). When it comes to the decentralized platform, which has no central authority to control it, it should self-regulate. For this, the consensus mechanism takes place to reward the good actors and punish the bad ones. With such economic rewards, the decentralized platforms are regulated through these consensus mechanisms!
- Fair Mechanism
Since there is no central authority, a consensus mechanism is used to overcome the challenges faced by decentralized networks. Consensus mechanisms allow anyone to participate in the network. This justifies the blockchain system’s open-source and decentralization properties, whether PoW, PoS or any other blockchain consensus mechanism.
- Prevent Double Spending
The biggest challenge in a blockchain network is preventing users from double spending the same coin. A technical issue that arises with the concept of digital currency is the ability for someone to duplicate the digital money and spend it at two or more locations at the same time. Blockchain technology does not prevent double spending; however, the recording and verification of the transaction with a consensus mechanism on the immutable ledger do.
- Fault Tolerant
The ability of a system (computer, network, cloud cluster, etc.) to continue operating without interruption when one or more of its components fail is referred to as fault tolerance. Every node in the blockchain has a copy of all transactions that take place in the blockchain network, thus making all the information available 24*7 even if some of the nodes are down.
These are the major objectives of the blockchain consensus algorithm. If you need a perfect consensus algorithm for your custom private or permissioned blockchain platform, contact a blockchain development company for guidance. For more information, please contact BSEtec.