Comparative Study of Blockchain Consensus Algorithms in Cryptocurrency

Abstract

Blockchain technology serves as a cornerstone for various cryptocurrencies, with current research primarily focusing on its security aspects due to its inherent qualities such as stability, immutability, security, and decentralization. Similar to other distributed systems, Blockchain relies on consensus algorithms to achieve agreement and safeguard its network. In recent years, diverse consensus algorithms have emerged within the Blockchain ecosystem, playing a pivotal role in upholding the security and integrity of distributed networks in blockchain technology. These algorithms are fundamental in maintaining trust within the blockchain technology realm. They can be categorized into two types: proof-based and voting-based. This paper presents some of the prominent consensus algorithms from these two categories while scrutinizing their respective strengths, weaknesses, and the specific types of blockchains to which these algorithms are applicable. Keywords—Blockchain, consensus algorithm, PoS, Pow, DPoS, PBFT