Reputation based proof of cooperation: an efficient and scalable consensus algorithm for supply chain applications

Abstract

The growing interest in blockchain technology has gained a lot of attention in Supply Chain Management (SCM) and sparked the quest for decentralized, scalable, efficient and trustworthy consensus schemes. Traditional blockchains rely on computationally expensive consensus mechanisms with low throughput and high latency. This paper conducts a performance evaluation of several existing consensus protocols to illustrate blockchain’s shortcomings in terms of consensus and propose a new consensus algorithm: Reputation based proof of cooperation (RPoC). The RPoC algorithm uses a layered architecture to segment the nodes that participate in the consensus phase in order to improve scalability and efficiency while maintaining trust among peers. The layered design addresses the issues of flexibility and scalability and breaks down the extensive mining process into segments. Rather than choosing a few nodes for mining, the proposed consensus process involves all network nodes, making it more efficient, decentralized and scalable. Through extensive theoretical analysis and experimentation, the suitability of the proposed algorithm is established in terms of scalability and efficiency.