Blockchain and Consensus Algorithms

Abstract

Blockchain is a publicly distributed ledger system that provides access to all records for everyone participating in the network. All the additions to the block are permanent and unchangeable. All major or minor changes are reported in a new block and cannot be reversed. Since the ledger is being distributed, there is no centralized authority. By eliminating the need for intermediaries, blockchain enables parties to trace transactions quickly and easily. The transactions occurring on a blockchain are transparent, reliable, authenticated and secured with the help of cryptography. The biggest advantage of the distributed ledger of blockchain is reduced operating costs. Blockchain is already being used by companies like IBM, Barclays, and Kodak etc. Blockchain can contain details of transactions for resources other than money such as land, automobiles, agricultural products etc. Any adjustment must be accepted by most people in the network, and this is achieved using Consensus algorithms. This paper discusses some of the core algorithms for consensus used in blockchain systems.