Proof of Chance: A Lightweight Consensus Algorithm for the Internet of Things

Abstract

This article is to propose a consensus algorithm, called Proof of Chance (PoCh), which is designed for the industrial Internet of Things (IIoT). The PoCh protocol is designed to be scalable and extensible, with a controllable conformance delay and low hardware and computation requirements. To reach a consensus, PoCh uses chance rather than computing power: “if condition$_{1}$, I am a candidate; if condition$_{2}$, I am the miner.” During every consensus iteration, the condition$_{1}$is updated, and a single miner is chosen using condition$_{2}$. Those conditions are randomized without the node generating any value and without assigning any weight to such value. The fault tolerance of PoCh is$5f/3 + 1$, meaning that PoCh can successfully achieve consensus as long as more than 40% of nodes are functioning properly, compared to 50% in the Proof of Stake (PoS) protocol.