A consensus algorithm is a vital part of any Blockchain and is fundamental to a distributed network. Proof-of-Work, the first consensus algorithm developed by Satoshi Nakamoto, is used by the two most popular blockchain platforms, Bitcoin and Ethereum. The algorithm guarantees a unique view across the network by proposing a mathematically complex problem to all participants. Solving the problem successfully first rewards the winner with the right to mine a new block. This results in a block reward.
Since its inception, Proof-of-Work has laid the path for many other consensus mechanisms now in circulation. In this document, we describe Leased Proof-of-Stake, a variation used in the ShareLedger distributed ledger. Also addressed is the implementation and technical variances the ShareLedger consensus algorithm provides.
Download the full PDF version of Leased Proof-Of-Stake document here.
