A Network-Aware and Reputation-Driven Scalable Blockchain Consensus

Abstract

Blockchain systems have been widely adopted in today’s society, with consensus algorithms serving as their core component to ensure all participants in the network agree on a specific data state. Existing consensus algorithms such as Proof of Work (PoW), Proof of Stake (PoS), and the Practical Byzantine Fault-Tolerant Algorithm (PBFT) exhibit certain limitations in terms of scalability, security, and efficiency. To address these limitations, this paper proposes a novel Network-based Reputation Consensus (NRC) algorithm. The main research contributions of this work include the following: (1) An intelligent grouping mechanism that dynamically groups nodes based on network awareness, forming consensus groups with low internal latency and high bandwidth utilization, significantly reducing intra-group communication overhead. (2) A dynamic reputation system incorporating a “diminishing returns” reward function and a “multiplicative penalty” mechanism, effectively incentivizing honest node participation while preventing power monopoly. (3) A two-phase model of “intra-group BFT consensus + global communication committee ordering” that decomposes complex global consensus into parallel intra-group processing and coordination among a small set of elite nodes, thereby drastically improving efficiency. (4) Comprehensive simulations comparing the NRC algorithm with mainstream consensus algorithms, demonstrating its superior performance in communication overhead, throughput, latency, and tolerance to malicious nodes, thereby laying the foundation for large-scale applications.