Invented by Qiang Tang, Advanced New Technologies Co Ltd
The Market for Blockchain Consensus Node Selection
Consensus mechanisms are an integral component of decentralized systems. They guarantee that blockchain networks remain synchronized and their transactions valid.
Different consensus mechanisms exist, each offering their own advantages and drawbacks. When selecting a consensus mechanism for your application, take into account factors like scalability, efficiency, cost-efficiency and security requirements. It is essential to select the right one based on these considerations.
Scalable systems are those which can easily and seamlessly expand resources when demand grows, without having to upgrade hardware, software or technology. This characteristic is essential for a successful business model as it allows companies to grow and evolve with their customers’ and markets’ demands.
Scalability is a characteristic of many IT systems and products. It refers to the capacity of a computer or product to function optimally when its size or volume changes. Scalability also refers to its capacity for handling more work (users, storage space, maximum number of transactions) than its initial design allows.
The market for Blockchain consensus node selection is rapidly growing, as it serves as the primary backend for many different blockchain applications. Unfortunately, due to its rising demand, there have been numerous scalability issues encountered.
Researchers have devised various scalability solutions to tackle these difficulties. These range from layer 1 scalability methods, layer 2 scaling solutions and scalable consensus protocols.
Scalable blockchain networks can accommodate more participants and transactions than their original system, making them suitable for use across various industries. This is because the blockchain has a decentralized structure which permits it to run at the speed of even the slowest node within it.
This property of the network is what makes it secure and efficient for transactions to occur quickly. Furthermore, this helps maintain stability within the system by preventing overloading with additional data.
Scalable blockchains can also reduce the energy demands of their network by decreasing communication requirements between nodes. This is especially true for proof-based consensus protocols like Proof-of-Work (PoW), Proof-of-Stake (PoS) and Delegated Proof-of-Stake (DPoS).
Consensus in relation to blockchains and other distributed ledger technologies (DLTs) refers to the process of verifying a state, value, or piece of information is correct and agreed upon by all nodes. Different consensus mechanisms exist which may be suitable for different applications and networks; some work better on public blockchains while others perform better within private permissioned networks.
Some of the most widely-used consensus protocols include Proof of Stake (PoS), Fair Binary First Time (fBFT) and Delegated Proof of Stake (DPoS). These mechanisms offer some form of fault tolerance since they require at least a certain percentage of nodes to respond in order to reach consensus. These systems have been designed to withstand failures, network segmentation, message delays, out-of-order message arrivals and corrupted message attacks.
Another consensus mechanism, PoW, allows validators to acquire the right to create new blocks by solving a cryptographic puzzle. Unfortunately, this algorithm requires considerable computational power which may prove inefficient for distributed systems like blockchains.
However, some consensus algorithms are designed for scalability and can work on both permissioned and permissionless blockchains. For instance, Proof-of-Elapsed Time (PoET), a privately developed consensus mechanism, seeks to limit energy consumption across both types of networks. Furthermore, PoET prevents miners from hoarding large amounts of crypto assets as stakes or centralizing rewards in ways which might dillute the decentralization properties of a blockchain network.
The Blockchain consensus node selection market is expanding rapidly, particularly in the United States and Europe. This development is driven by an increase in cryptoassets as well as demand for regulated financial services.
Regulated financial institutions must ensure their infrastructure can handle the massive amounts of data generated from adopting these technologies. Slow or inefficient consensus algorithms may result in prolonged transaction times and high costs for consumers.
Some of the more advanced consensus algorithms utilize concepts similar to PageRank, which assigns importance to nodes based on past activity. Some protocols, like DPoS, employ a voting mechanism where validators select their preferred block verifiers in an effort to achieve fair and democratic decision-making. Meanwhile, PoI employs a ranking model that takes into account clusters of interrelated transactions for ranking purposes.
Blockchain consensus is an essential process that provides coordination for a distributed peer-to-peer network. It enables participants to propose and process payments in near real time, as well as reach consensus on the state of the distributed ledger. This method ensures the network remains secure and decentralized.
Consensus algorithms enable unified agreements among different nodes in a blockchain network while also protecting the system and its data. This guarantees that recorded information on a blockchain accurately reflects what’s happening in reality.
When selecting a blockchain consensus protocol, there are multiple options to choose from, each with their own advantages. When selecting one for your application scenario, make sure the protocol fits exactly what your needs require.
The three primary consensus mechanisms on a blockchain are Proof of Work (PoW), Delegated Proof of Stake (DPoS), and Byzantine Fault Tolerance (BFT). Each involves competing nodes that attempt to publish the next block on an unprotected blockchain network with the goal of earning rewards in cryptocurrency or transaction fees.
In a PoW model, validating nodes are required to solve complex mathematical problems with energy, increasing transaction throughput. Unfortunately, this also raises the risk that invalidating nodes might vote on blocks with incorrect information or fraudulent transactions.
Therefore, authorities should weigh the pros and cons of consensus mechanisms when crafting policies or regulations. They should be mindful that some consensus mechanisms may lead to poor outcomes for consumers if their method for reaching consensus leads to slow transactions times or high costs.
They should also take into account the Bali Fintech Agenda, which provides guidance to authorities in harnessing the advantages of new technologies while mitigating any risks. The BFA promotes competition, consumer protection, financial integrity and stability – with a section on security for financial products and services.
Another consideration is the Nothing at Stake problem, which occurs when one entity gains control of a private Blockchain network through its consensus mechanisms. This creates an ecosystem which may be difficult to regulate and poses threats to financial market integrity.
Blockchain technology presents a range of consensus mechanisms. Some prioritize security, while others promote speed and efficiency. Regulators must weigh the pros and cons to decide which option best meets their regulatory objectives while mitigating risks to financial stability, market integrity, consumer protection, and competition.
Consensus in a distributed network requires alignment of interests among all validators (nodes that vote on blocks and process transactions), in order to minimize the effects of failed nodes. A successful consensus protocol must balance consistency with availability and partition fault tolerance (CAP) in order to minimize this impact.
Public and private blockchains in the fintech space typically employ Proof of Work (PoW), which can be applied to a range of use cases within financial services, as well as Proof of Stake (PoS), which is best suited for applications where large stakes can be rewarded quickly.
When selecting a consensus mechanism, many factors come into play such as the size of a transaction, what type of blockchain it uses and the technology supporting it. Furthermore, according to the Business Financing Agency (BFA), an ideal consensus should be robust, secure, scalable and efficient.
Some of these features are built upon Sybil resistance technology, making it difficult for an attacker to take control of the network by amassing a majority of hash rate or validating transactions. A good consensus mechanism should also be able to mitigate other potential risks like The Byzantine Generals Problem – in which malicious nodes can thwart consensus by reorganizing or undermining their network.
A successful consensus protocol should offer transparency to users and participants. This way, they can fully comprehend the workings of the system, easily verifying results. Furthermore, regulated entities can more closely monitor their own activities to detect issues before they spread.
The Advanced New Technologies Co Ltd invention works as followsTechniques are described selecting consensus nodes in a blockchain. A plurality of shareholder votes are performed to produce a vote result for each shareholder. Each shareholder node votes for one of the expected nodes. The expected nodes and plurality shareholder nodes form a group of nodes that are associated with a particular blockchain. A shareholder node is any node that holds at least one share. Each shareholder node is required to verify its vote. Based on the vote result, the number of shares held by each member of the group was determined. Based on the number shares held by each shareholder node, a plurality of consensus nodes is selected.
Background for Blockchain consensus node selection
Blockchain technology can be described as a distributed decentralized database technology that has characteristics like decentralization and transparency. It also features trust and tamper resistance. It can be used for data recording in a peer-to-peer or public network. A consensus algorithm is used to ensure consistency in data on a blockchain. Data can be generated and updated using the consensus algorithm. A distributed consistency consensus algorithm, the Practical Byzantine Fault Tolerance algorithm (PBFT), is widely used in the industry.
Practical Byzantine Fault Tolerance is a state machine replica algorithm. Most often, consensus nodes are chosen from a large number of nodes on the Blockchain to perform consensus processing. There can usually be between 4 and 11 consensus nodes involved in consensus. Currently, PBFT algorithms for consensus node choice mainly use fixed and random selection. It is difficult to create an algorithm that will allow all nodes to approve a new consensus node. Furthermore, node selection is a complex consensus-reaching process. In terms of implementation, fixed consensus node selection is easier than random selection. For example, source code only needs to be distributed among all nodes. This method can be difficult if a fault is experienced or a consensus node is modified for any reason.
Currently, the industry is in dire need of a PBFT consensus-node selection solution that is simple to implement, maintain, highly efficient and reliable.
One or more of the implementations of this specification are intended provide a consensus-node selection method and apparatus and server to select a consensus consensus node faster, more efficiently, with greater reliability in Practical Byzantine Fault Tolerance.
The following methods are used to implement the consensus node selection algorithm and apparatus, and the server in one or more implementations.
A consensus node selecting method involves: obtaining an equity voting result for a shareholder Node for at most one selected expected Node; determining, based upon the equity vote result, the number shares owned after equity interests voting; and determining the consensus node Selection result based the number shares owned after equity interests voting.
A consensus node selecting apparatus includes: A voting result acquisition module that is configured to obtain an equity vote result for a shareholder nominee for at least one expected node; a voting results determining module configured to determine, based upon the equity interest voter result, the number shares owned after equity interests voting; and a consensus determining module configured to determine a consensus consensus node selection outcome based on each shareholder nomination’s number of shares.
A consensus node selection apparatus consists of a processor and memory that can store an executable instruction. The instruction is executed by the processor to: obtain an equity voting result for a shareholder Node for at least 1 expected node; determine, based upon the equity voting result, how many shares each shareholder Node owns after equity interests voting; and determine the consensus node Selection result based the number shares owned after equity interests voting.
A server is a computer that contains at least one processor, and a memory to store an executable instruction. The instruction is executed by the processor to: obtain an equity voting result for a shareholder, where the shareholder number includes a node which owns at most one of the predetermined total shares; determine, using the equity voting result, how many shares each shareholder node has after equity interests voting; and determine a consensus result regarding the node selection based upon the number shares owned after equity interests voting.
In the consensus-based node selection apparatus and method, and the server that is provided in one or more of the implementations of this specification, a shareholder can conduct equity interest voting and choose a node to take part in consensus based upon the number of shares held by shareholder nodes. It is simple to implement. The selection result is valid and real. All voting results are made public in the network so that other nodes can approve them. The implementation solution described in this specification allows for a fast selection of a consensus node based on an equity share ratio. This reduces the consumption of consensus processes, simplifies consensus processing steps, makes consensus node selection more efficient, and results are more reliable.
BRIEF DESCRIPTION DES DRAWINGS
The following describes briefly the accompanying drawings to describe the technical solutions in implementations of either the current specification or existing technology. The accompanying drawings shown in the following descriptions are only examples of implementations of this specification. A person with ordinary skills in art can still draw other drawings from these accompanying sketches without having to create anything.
FIG. “FIG.7 is a schematic diagram showing a server according to the implementation of this specification.
FIG. “FIG.8 is a flowchart that illustrates an example of a computerized method for selecting consensus nodes on a blockchain. It was created according to the implementation of the current disclosure.
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