Blockchain is not a perfect cryptocurrency system that has come to offer solutions everywhere. There are areas that at this particular moment in time cannot offer the optimum possible solution compared to classical computing applications.

The main advantages of using Blockchain technology are:

• Full history, the standard databases for every query we run on they return us a snapshot of the data that exists in that database at that particular moment. Blockchain is essentially a database of historicity which has the complete history and all values ​​that existed from the first moment of network operation.
• Difficulty in cyber-attacks, as the system is shared among many computers, there is no central database that hackers will could use to perform malicious attacks.
• Non-existence of a central authority, since it is a fully distributed system in many points, there is no need for a central principle of righteousness its functions. In this way it manages to greatly reduce the operational expenses to whoever manages it.

Although it creates decent solutions in the financial sector mainly it does not is the optimal solution as the banking sector needs a system that will perform huge volume of transactions in fractions of a second.

Blockchain will need huge computing and energy power to function properly in such conditions.

However new consensus protocols are constantly being created that greatly reduce the need power.

Due to its nature, Blockchain always provides transparency. For this specific reason until at the moment it is not the optimal solution for the management and safeguarding of secrets information and documents.

However, the above problem can be solved with the right one choice of Blockchain type and consensus algorithms that modify it into a highly private one network.

Consent Protocols

An important feature for creating a Blockchain is defining the possibilities to create new blocks. This problem is solved with the option consent protocols.

The choice of such protocol is crucial, as it limits the platforms that will be selected next as well as the features that will Blockchain can have.

What exactly are consensus protocols?

The term consensus refers to the agreement that should exist between nodes for the state of the Blockchain. A known problem that can cause us understanding the above definition, it is the problem of the Byzantine generals (Byzantine Generals Problem).

This problem describes a situation where generals have arrive outside a city and are about to besiege it. A part of generals suggests attack, while the rest retreat. Without the common decision to attack defeat is inevitable.

So, also in Blockchain where the basic idea is the non-existence of any central one principle for decision-making, there must be a way to be used for the choice of decision to create new blocks. So far there are several protocols of consensus, however new ones are created frequently as Blockchain develops more and more areas.

When a user enters a Blockchain network, they accept their initial state network which is published in the genesis block published by the creators before the network is even available to more users. Every block you create after that from the original, the rules to follow are determined by the consensus protocol that has been selected.

Regardless of the mode of operation that the protocol specifies, in order to do the addition of a block as with the problem of Byzantine generals, there must be unanimous decision that will validate the block to be added to the chain.

Plus a wealth of properties and processes that exist in the background for how consensus protocols work, but the average user doesn’t need to know about them as these are entirely managed automatically by some software system.

Consent protocols can be categorized into three separate categories:

1. Based on PoW protocols, where production of some project is necessary
2. More efficient and lower energy consumption protocols (Proof-of-X) whose logic is based on PoWs.
3. Hybrid protocols, which are variations of classic protocols and operate with the existence of committees

The above three categories can theoretically be analyzed as well as various of the popular consensus protocols. Also, the method can be presented but not in today’s article. Stay tuned for our next blockchain article!

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