Consensus protocols used in public blockchains, such as proof of work, are not necessarily the most suitable for this type of blockchains. Therefore, there are a number of consensus algorithms optimized for permissioned blockchains. Let’s have a look at three common protocols.
There are many consensus algorithms in use in different blockchains. Let’s have a look at the most common algorithms at a high level.
In the beginning, there was Bitcoin. The anonymous creator (or creators) envisaged a completely decentralized network for a global and public cryptocurrency. Thus, Bitcoin and its early successors were public blockchains to which anyone could connect. This clearly makes sense for currencies that aim to be universal. It also makes sense for public smart contract
Most of the regulatory heat on crypto has been coming from the federal level. Not only has the market suffered a series of shocks due to statements put out by SEC officials, but the whole approach has been so haphazard that some in the community would rather have the band-aid pulled off quickly, as it were. But
Blockchain technology has use cases in all sorts of industries. At the heart of most services that involve people, is a concept known as self-sovereign identity. Representing identities on the blockchain allows healthcare data applications, online voting, password-free authentication and many other applications. Blockchain-based self-sovereign identities not only present a business opportunity for companies, such
Blockchain technology would not exist without cryptography. It is not necessary to be a math genius, but any blockchain user or cryptocurrency holder should understand some basic cryptographic primitives. Many coins have been lost or stolen because users did not understand the basics of cryptographic key management. For a fascinating history of cryptography, “The Code
Blockchain technology is still relatively new and experimental. Despite this "immaturity", we are already witnessing the emergence of a third generation of platforms, promising improved performance and scalability. After months of whitepapers, token sales and development promises, projects are finally starting to release working software. After the launch of the EOS main network last months,
Despite finally launching its official main network, EOS keeps generating negative news. In this most recent controversy, Block.one, the company behind EOS’s development, has announced it will participate in the voting procedure for block generators. The company has announced to use its token allocation to participate in the staking progress used for delegate voting. EOS
What I am about to describe is currently not possible in most jurisdictions due to legal and regulatory reasons. However, this does not mean we should not explore the potential of the idea for future use. What if I employment contracts could be automated in smart contracts and executed autonomously? Would this result in any
General purpose blockchains, such as Ethereum, enable the implementation of smart contracts. Smart contracts are legal agreements that are implemented in computer code and execute autonomously. The concept of smart contracts has existed since at least 1994 when cryptographer Nick Szabo wrote about them. A very simple example of a smart contract is a vending
After our previous articles on the impact the blockchain may have on the music industry and the insurance industry, it’s time to look at another use case: crypto gaming. Transparent Environments Since the emergence of Ethereum as a general purpose blockchain platform, decentralized application developers have realized that games can be implemented on the blockchain.
Blockchain technology provides completely decentralized systems with very strict fault-tolerance and consistency guarantees. In Computer Science terms we would say that sequential consistency is provided in the presence of a Byzantine failure model. This may sound complicated, but it just means that nodes may fail in any way and even act maliciously. Furthermore, all members
The importance of data has become clear in recent years. Artificial Intelligence (AI) has finally started to deliver very useful results and amazing applications have become possible, ranging from self-driving cars to customer profiling and advanced recommendation services. All these applications have one thing in common: they rely on data, a huge amount of data
In this series of articles, we look at different applications of blockchain technology. We have previously highlighted potential benefits of the blockchain for the music industry. In this latest installment of the series, we will look at the insurance industry. Dinosaurs Not much has changed in the insurance industry since Edward Lloyd started insuring seafaring
Blockchain, despite its potential to be a technology as disruptive as the internet itself, seems to be stuck in a holding pattern of lots of hype but little in the way of progress in terms of applicability, user base, and general public recognition. Unlike ‘hype-beasts’ before it, however, blockchain is based on proven, existing
By now, everyone with an interest in Blockchain and cryptocurrencies will have heard the word token. However, many people will have used the word or even bought tokens, without really knowing what they are. Others will have invested substantial amounts of money in tokens without even knowing it. Definitions The confusion is due to a
A famous Tex Avery cartoon from 1949 depicts ‘The House of Tomorrow", where autonomous devices anticipate your needs and act on them with preternatural alacrity and competence. But, as in similar satires of the time, the gag ends up being that your so-called futuristic appliances just as often turn on each other and you, leading
Blockchain technology was born out of the quest for developing digital currencies without the need for a centralized authority. Bitcoin emerged in 2009 (proposed in 2008) as the first public blockchain, initially focusing on monetary transactions. Essentially, Bitcoin implements a state machine on top of a peer-to-peer network. This means that transactions cause the system
By now, most people have heard of Bitcoin and cryptocurrencies and know that they are digital currencies. Many people also understand that there is no central authority, such as a bank, in charge of managing this. Instead, they will have heard of the Blockchain and how it stores money in a decentralized way. We have
Whenever you buy or sell a cryptocurrency, a record of the transaction is inscribed upon the blockchain, a decentralized, indelible ledger shared across millions of computers in the world. The bits of code that allow these transactions to take place are known as 'smart contracts', and while cryptocurrency and the blockchain are by now widely
Back in 2008, when Lehman Brothers failed the world, and recession hit mankind at its worst, people not only lost their jobs, but also their trust. Trust in banks, in government organizations and even in big companies who sold products or services claiming to be the best in the market. When Lehman Brothers put the
The Nature of Money Once upon a time, people used to trade in items that were useful to them. For example, I could trade meat from my hunting kill for a stone knife that helped me prepare a meal. At some stage, people realized this could be abstracted by using items of some associated value,
Blockchain is a system which permits the maintenance of a single updated, valid and secured ledger among multiple connected computers. It is pertinent to know that blockchain technology gives room for a transparent, secure and eagle-speed transfer of digital goods from one person to another. Anytime a transaction takes place, the date, its source and