Steemit Crypto Academy Contest / S1W3 – Blockchain through the concepts by @ngoenyi

Greetings dear friends, trust we are all doing great? Welcome to the week 3 of the steemit Engagement Challenge. It is time for me to take part in the steemit cryptoacademy contest. This weeks theme is Blockchain through the concepts.

This topic is important since blockchain is surrounded with so many concepts which makes it what it is today. It is just one word, but comprises of so many terminologies. Our understanding of these terms makes blockchain more clearer to us and how it works

Consensus protocol is a very important concept in every computer driven system. It is the process or mechanism which enables a machine, users or program to effectively coordinate itself when being used by several persons. So it answers the question of which entry should be executed or added despite having different persons on it who does not trust each other. So this means that there should be a singular origin of truth that every user will rely. Thus providing a check both for those who create blocks, validate entries added to the block and users to ensure transparency within the block. It is used to agree on what we may refer to as the truth, whenever the blockchain receives data from many nodes.

I am discussing on one of these protocols called Proof of Stake*

A Proof of Stake(POS) is a type of consensus mechanism that is used to verify and validate data, create new blocks in a blockchain. It ensures that whatever data that is added to the block is valid in the process keeping the distributed ledger secure.

In this type of consensus protocol, validators or nodes are selected based on their holdings or quantity held of the associated token of the blockchain concerned. This is done to reduce the level of computational work done and external resources like electricity and hardwares used in proof of work before a block is created. Selection of validators are randomly.

The coins held by these validators serves as collateral to the network in the case of any fraudulent action by them. These ones are randomly selected to validate a block and get rewarded for their work too. The more coins that are staked the more the validator will stand to benefit. If the validator acts in any dishonest way, the coins staked can be lost in the process.

Every blockchain requires a consensus protocol to ensure its transparency and reliability of data stored. So Proof of Stake provides the much needed process and space to do so.

The Proof of Stake does not require much energy in its block validation since much hardswares and other power equipment are not needed, making it environmentally friendly. Instead, it uses staking power to determine who gets to mine a block.

The use of this type of consensus protocol have kept a check on 51% attack, that is making it very difficult for someone to control 51% of the cryptocurrency, thus giving him control over the network. With this he can alter the blockchain and decide whatever happens on the network. So integrity of the blockchain is kept paramount.

The proof of stake also provides a fast and cheaper way of transaction processing within the blockchain. This is made possible because of the staked cryptocurrencies providing scalability. Investors too benefit from this by earning staking rewards from their staked coin.

Yes, the blockchain can exist without the concept of Proof of Stake. On the one hand, assuming it is only POS that we have as a consensus protocol, the blockchain network will still exist, but cannot be relied on for transparency immutableness. Data stored cannot be trusted and can be edited or changed any time. Additionally the blockchain will easily be manipulated to suit owners intention.

On the other hand, there are several alternatives to Proof of Stake. These can be used on the blockchain network to still create blocks, verify and validate block transaction. These alternative have there own working module which is different from proof of stake, with their own advantages and disadvantages too.

Some of these alternatives that are also similar are but not restricted to:

° Proof of Burn(POB)

° Byzantine Fault Tolerance(BFT)

° Proof of Capacity(POC)

° Proof of Elapsed Time(PoET)

etc.

Yes it is. Despite the numerous advantages of this consensus protocol, work still needs to be done on it. The tendency of Proof of Stake leading to centralization is there. This is because, there is no limit to the amount an individual can stake to be selected as a validator. So an individual with much funds or group of persons can pool their funds together and stake as one person thus having a greater chance of being selected every time.

Another problem facing this consensus algorithm is its adoption rate and workability. Most busy blockchain networks still adopts POW. so we are yet to prove beyond reasonable doubt the efficiency of this protocol compared to POW.

The developers need to improve on its security. Nodes have been attacked and hacked several times and hackers have been able to discover bugs which could be used to create coin from nowhere, recover spent coins and hijack the blockchain. Thus more improvement needs to be done on the blockchain to prevent that from happening again.

Proof of Stake have come to stay as a well known consensus protocol. Its benefits like being eco-friendly, not requiring much capital to mine coins, because equipment are not needed, protecting the blockchain from being taken over by miscreants, are great reasons while so many newly built blockchains are adopting it.

Hopefully, improvements will continue to be done on it to give that wide acceptance it desires.