What is the MARAChain Consensus Method?
What is Consensus?
Consensus is a method is central to a blockchain’s throughput. I.e. how many transactions it can process within a given period of time. And networks, like EOS, MARAChain, ARK, and many others came about as the result of implementing new consensus mechanisms.
By definition, consensus is a decision making process within a group. For blockchain, these decisions are about the validity and the order of transactions on a network. Currently, there are a lot of consensus types. But the most popular ones are PoW (proof-of-work), PoS (proof-of-stake), DPoS (delegated-proof-of-stake).
Most popular consensus methods
PoW: the use of computational power to solve cryptographic puzzles to validate transactions, order them, and put them in blocks. Example: Bitcoin
PoS: the use of coin holdings placed at stake to determine the right to validate the blocks (and receive a reward for it). So now who finds a block is not determined by the processing power one has, but by the stake in the network. Example: Ethereum
DPoS: is similar to PoS, but with a difference, called delegation. In delegation, token holders can entrust (delegate) their tokens to those who run nodes, produce blocks, and represent them in consensus. As the result, they are getting a portion of rewards received by node providers. Example: MARAChain
Why MARAChain uses dPoS as a Consensus Method?
First of all, note that MARAChain dPoS is not the standard dPoS. MARAChain is a Federated Private Blockchain network, therefore the ownership of the Blockchain nodes are from the company itself. These nodes also act as validators for transactions within the blockchain network. MARAChain has the option to delegate the validation of the transactions of these nodes to third companies or institutions, previously registered in the network. This does not mean that these external validators access the content of the transactions, but that they have the ability to access the network in read-only mode, in order to verify that the transactions have been issued by the platform itself.
With the use of this consensus method, MARAChain acquires the possibility of being audited 24x7 by entities of international prestige, such as the European Union Parliament and MERCOSUR or companies such as PWC (Price Waterhouse Coopers) and Telefónica de España.
This 24x7 audit option, together with the issuance of official Time-Stamping certificates, allow MARAChain to be a Trusted Third Party in Judicial Matters, acquiring all network transactions validity and legal recognition.
In short, MARAChain opts for the use of Delegated Proof of Stake as a Consensus Method because it is the most effective method for our blockchain network, allowing great scalability without loss of performance or slowness of transactions. Without forgetting that it is the method that most resembles the parliamentary democratic system.