An Efficient Consensus Mechanisms for Blockchain Technology

Abstract

Blockchain is a decentralized transaction and data management technology first found as the underlying concept of Bitcoin cryptocurrency. Blockchain technology has been gaining popularity due to its core attributes such as security, anonymity, immutability, and data integrity without any involvement of third parties. Consensus mechanism is a procedure by which all peers in the Blockchain network come to an understanding to a common agreement on the current state of the distributed ledger. It plays a vital role in increasing the efficiency of any Blockchain environment. Traditional consensus mechanisms often solely consider computational power or stake, neglecting the reputation and credibility of validators. This can lead to malicious or powerful actors/validators participating in the network, potentially compromising its integrity and stability. Blockchain resilience hinges on its ability to withstand node failures without compromising data integrity or transaction processing. Existing approaches may not adequately address potential failure scenarios, leading to network disruptions and compromised trust. Though we have many consensus mechanisms working currently in different areas, they still lack in dimensions such as status of validators, latency, node failure etc. newlineThrough this research, we propose a novel consensus mechanism Proof of Credibility (PoC), which unlike the traditional consensus mechanisms, takes into account the factors such as (a) detection of nodes (malicious or genuine) (b) credibility of nodes (for the process of block proposal and block validation) and (c) link failure. While the customary consensus algorithms rely heavily of node s computational power (PoW) or the stake of the node in the network (PoS), PoC offers fair chance to all the nodes in the network to participate in the mining/validation process without having computational-power / stake in the network.