A Newer, More Secure Consensus Algorithm
In blockchain technology, there exists a decentralized system with no central authority figure. With decentralization, it raises security by preventing corruption of the entire network from a single source. However, since there is no authority figure, how can the network make any decisions? This is where consensus algorithms come in. These algorithms help the network make decisions like validating new blocks in the blockchain.
Arguably the most well known consensus algorithm is proof-of-work, which is used in Bitcoin. It involves miners competing with one another to use their computational resources to solve complex mathematical problems to add new blocks to the blockchain. However, even though this algorithm defends against spam and denial of service attack, it contains disadvantages in other areas. Firstly, proof-of-work leads to excessive electricity consumption and wastage. This wastage comes from the computational resources used by all the miners in the network. Secondly, proof-of-work makes the network vulnerable to a 51% attack. Any malicious individuals with 51% or more of the network mining power can take over control of the network. These attackers can potentially interfere with the mining of new blocks, which allows them to block transactions, prevent other miners from completing blocks, and more.
Because of these factors, other types of consensus algorithms have been created. One of these algorithms is proof-of-stake. The popular Ethereum blockchain is one of the blockchains that are currently transitioning from proof-of-work to proof-of-stake. In this algorithm, there is no longer a mining process. Instead, there are now validator nodes that verify new blocks that are added to the blockchain. These validator nodes have to pay a deposit of ether into a smart contract that rewards them over time. If these nodes were to be malicious in any form, the smart contract will automatically lock the ether away. This incentivizes the validators to behave themselves. However, the issue with this algorithm is that any random node can become a validator by simply staking their cryptocurrency, so it is difficult to control the nodes that become validators.
Thus, there is another algorithm that solves these issues. The Elysian platform is a blockchain-based ecommerce platform that utilises a new consensus algorithm called proof-of-authority. Instead of nodes paying to become validators, Elysian pre-approves a number of nodes to become authority nodes. These authority nodes have the ability to validate and ‘seal’ new data blocks in the Elysian network. Any new nodes that want to become authority nodes will have to be voted in by the existing authority nodes.
The use of proof of authority helps to provide the Elysian platform with a private blockchain that can securely store important user data such as encrypted credit card information in a distributed network. It not only negates the weaknesses of previous consensus algorithms like proof-of-work and proof-of-stake, but also allows Elysian a high level of security and control over its blockchain. This is highly important in an ecommerce platform as security is of utmost importance to shoppers and merchants alike. This provides Elysian with a definite edge over its non blockchain-based competitors in the ecommerce space. Sounds interesting? Find out more about the Elysian platform in the links below!
Website: https://elycoin.io/
Whitepaper: https://elycoin.io/whitepaper/english
Telegram: https://t.me/elysian_ely
Facebook: https://www.facebook.com/ElysianxELY
LinkedIn: https://www.linkedin.com/company/elysian-ely
