A Deep Dive into Blockchain Consensus Algorithms

Abstract

Blockchain has a great potential to change the way we interact and transact on the Internet. It has features like decentralized systems, security, immutability and transparency. Given that it is a decentralized system and there is no third party involved to verify transactions, security is at risk. Such a system can be highly prone to attacks like double spending and might become vulnerable at times. How is it avoided without having a centralized system? For this system to function at a global scale, a secure algorithm is highly needed. That is where a consensus algorithm comes into play. This chapter discusses various Blockchain consensus algorithms like Proof of Work, Proof of Stake, etc. and gives a brief overview of each.