Comparison Analysis of Blockchain Consensus Algorithms in Decentralized Public Environment: A Review

Abstract

The rapid evolution of blockchain technology has led to the development of various consensus algorithms (Ben-Sasson et al., 2014), each with distinct characteristics that influence the scalability, decentralization, energy efficiency, and transaction costs within decentralized public environments (Ampel et al., 2019). This study provides a comprehensive review of prominent consensus mechanisms (Block & Marcussen, 2019), including Proof of Work (PoW), Proof of Stake (PoS), Proof of Elapsed Time (PoET), and others, to elucidate their operational principles (Hu et al., 2021), strengths, and limitations (Al-Housni, 2019). Through a systematic comparison based on defined parameters, we dissect the transaction processes across different blockchains to understand their suitability for diverse applications. Our findings reveal significant trade-offs among the chosen algorithms, highlighting how they balance efficiency with security and decentralization. The analysis aims to offer insights into optimizing blockchain design for enhanced performance and sustainability, addressing the critical challenges faced by current and future decentralized systems. This paper not only serves as a guide for selecting appropriate consensus algorithms for specific needs but also sets the stage for further research into developing more robust and efficient blockchain frameworks.