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?
What is the solution of Satoshi Nakamoto (2008) for the well-know problem in computer science?
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)
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How does Proof of Work works in Bitcoin?
Why is fraud computationally infeasible in POW?
What are the controversies of POW?
What is the process of updating a ledger in Bitcoin?
- Transaction created
- Transaction broadcasted to network
- Peers validate transaction
- Validated transaction added to new block
- New block added to blockchain
- New block distributed to all peers
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