What is the MARAChain Consensus Method?

MARAChain
MARAChain
May 16 · 3 min read

What is Consensus?

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?

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.

MARAChain

The World’s First Secure Exchange of Digital Documents

MARAChain

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MARAChain

Secure Exchange of Digital Documents www.marachain.eu

MARAChain

MARAChain

The World’s First Secure Exchange of Digital Documents