Business Analytics and Emerging Trends - Blockchain - Consensus

7 important questions on Business Analytics and Emerging Trends - Blockchain - Consensus

What is well-known problem in computer science about consensus?

How can multiple indepently run computers reliably agree on a set of common data, where some computers introduce false information

What is the solution of Satoshi Nakamoto (2008) for the well-know problem in computer science?

All computers in blockchain network use system of distributed consensus to agree on continually updated history of transactions in a ledger

What are the three types of consensus mechanisms?

  • Proof of work: computational power needed to solve algorithm (Bitcoin)
  • Proof of Stake: Lottery-like system randomly awarded to those based on how much stake they commit (EOS)
  • Proof of authority: adjusted POS, validators are selected based on their reputation (IBM Hyperledger)
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart

How does Proof of Work works in Bitcoin?

Miners compete to win rewards in presence of computational cost, where each miner collects a set of pending transactions and simultaneously tries to find the hash.

Why is fraud computationally infeasible in POW?

You are competing against all the computational power in a network

What are the controversies of POW?

It's energy intensive and costly entry barriers (acquiring high computational power)

What is the process of updating a ledger in Bitcoin?

  1. Transaction created
  2. Transaction broadcasted to network
  3. Peers validate transaction
  4. Validated transaction added to new block
  5. New block added to blockchain
  6. New block distributed to all peers

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo