Consensus Algorithms In Distributed Ledger Technology For Open Environment

Abstract

Distributed Ledger Technology is getting famous day by day. Not only investors, financial organizations and technical personnel are interested in this technology, but also government and nearly every other organization are showing interest in this evolving technology. This technology deals with the settlement of transactions without the need of any third party. But it also requires that different nodes distributed all over the world should have the same state of the data to prevent faulty transactions for which there is a need of consensus algorithms. Many algorithms have already been developed and implemented. This paper discusses some of the algorithms that are widely accepted or talked about and also compares them in terms of centralization, energy consumption, transaction rate etc.