Obelisk Consensus Algorithm

Bitcoin Cash Definition

DEFINITION of the obelisk consensus algorithm

Obelisk is a promising consensus algorithm that aims to eliminate gaps in proof of work (POW) and proof of participation (POS) algorithms and helps maintain the state of the blockchain on the distributed network with minimal computing power and without the need for participation. related requirements. It reduces the need for exploration, considerably improves the speed of transactions and offers enhanced security.

Breaking the obelisk consensus algorithm

Public blockchains operate globally as self-regulating and decentralized platforms without any single authority. A real-time, reliable and secure network mechanism is necessary to guarantee the authenticity of transactions on the network as well as a consensus on the status of the general ledger. This very important activity is carried out by the consensus algorithm, which is a network protocol that decides the contributions of the different participants in the blockchain.

Although proof of work (POW) used by Bitcoin and Litecoin, and proof of participation (POS) used by Dash and NEO, are the two most commonly used consensus algorithms, they both have some drawbacks. POW is said to consume a lot of energy, and POS promotes the hoarding of cryptocurrencies instead of spending.

How does the obelisk work?

Obelisk is trying to work around POW and POS problems by distributing influence over the network according to a concept called “web of trust”. This concept distributes influence over various nodes of the network and makes consensus decisions based on the influence score of each node. Each node subscribes to a selected number of other network nodes, and the density of a node’s subscriber network determines its influence on the network.

In terms of roles and activities performed, there are two types of nodes on Obelisk: block generator nodes and consensus nodes, and nodes can assume any role. Block generator nodes collect new transactions, authenticate them, group verified transactions into a new block, and then broadcast the block over the network. The consensus nodes collect the blocks generated by the block generator nodes and place them in a separate container, other than the blockchain. It then identifies the block produced by the largest number of block generators. This block is called the local winner and can be added to the blockchain. Each of these consensus nodes keeps the necessary statistics on local winners, as reported by other nodes. When local winners have been reported by the majority or all of the consensus nodes, it is considered a global winner and continues to be part of the blockchain. However, if the nodes decide otherwise, then it will take one of the following actions based on available data and local newspapers

(1) resynchronize with the network or

(2) abandon participation in a consensus and / or the creation of blocks or

(3) keep your blockchain and request an emergency stop

The obelisk has the potential for great scalability and low energy consumption. Block generation can be performed on low cost hardware. The algorithm can run easily and efficiently over a sparse network with only nearest neighbor connectivity, instead of needing a broadband connection.

Obelisk is used by SkyCoin, which is emerging as a complete ecosystem of blockchain technology and was introduced to promote the use of cryptocurrency and general ledger technology as “real” currency, rather than a another means for speculative evaluation of cryptocurrency bets.

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