Analysis of the Consensus Protocols used in Blockchain Networks – An overview

Abstract

Distributed ledger technologies have opened up a wide variety of possibilities in various application sectors like Blockchain, Hashgraph, Holochain, Directed Acyclic Graph (DAG) and Radix. The consensus mechanism eliminates a centralized controller from altering the “content” or how it should be recorded on a blockchain. The consensus protocol is the defining technology behind the performance of blockchain, among other important components. Many people believe that data stored in a Blockchain is and will always be safe because of its decentralization and encryption. Consensus layer aids in measuring performance of the blockchain. Consensus procedures are essential for the long-term stability of a Blockchain system. Blockchain technology is built on consensus. Consensus protocols are invented to enhance the efficiency of Blockchain while also satisfying the specific needs of different application domains. Consensus protocol increases the efficiency of the blockchain by increasing the throughput of the system. PoW, PoS, DPoS, PoET, PoA and PBFT are the protocols reviewed in this paper. In this paper, we analyze and compare the strengths and weaknesses of consensus protocols. We have considered each consensus protocol’s performance metrics like throughput, scalability, decentralization accessibility and applications for blockchain networks. This survey will offer blockchain developers and researchers a thorough perspective of current consensus protocols and will aid in the development of future protocols.