Consensus and scalability two great challenges for the Blockchain
Introduction
The blockchain customer has a need to operate in a sufficiently effective and secure system with fast and transparent virtual asset transactions that guarantee return on investment. A peer review process is something that must be understood in detail before taking the first step.
When using blockchain technology one must have certain knowledge that will help us make decisions about cryptocurrency and broaden our business vision.
It should be noted that smart contracts and P2P systems work on decentralized platforms with a wide demographic that seeks to interact with each other, they are customers with new demands and requests that explore the crypto world to gain dividends by finalizing their agreement, in such sense, will be the interoperability, scalability and adaptability, the main aspects that can solve the current needs of the Blockchain.
Consensus protocol
Among the commonly used consensus protocols, three of them stand out because they are linked to the human quality of community work and development of independent negotiations.
On a global scale, there may exist protocols adapted to the different levels and strategic sectors of the Blockchain, but taking into account that a large part of the blockchain technology is made up of new adopters, as well as, small and medium investors, then we will take into account for this occasion, the most common protocols.
- PoW: Proof of Work, is a protocol that tries to build trust through work and dedication on the platform. A sample of this consensus are node operators, developers, witnesses, participants or sponsors, who bet on the platform through work and their interests. Their token holding comes largely from their activity within the blockchain and the rewards received are proportional to the amount of blocks created. An example of PoW, is the bitcoin network.
- PoS: Proof of Stake, relates to the ability to invest in the platform with the contribution of capital and long-term strategic partnerships seeking the generation of trust based on the accumulation of tangible financial resources. This algorithm requires a proof of possession of tokens, with the level of trust being proportional to the amount of accumulated encryption but not in relation to the amount of work performed. The protocol works on the assumption that the interest in the operation of the network is greater in those people who have greater possession of encryption.
- DPoS: Proof of delegated participation is one of the most trusted and widely used protocols in decentralized social media platforms. The user becomes a generator of influence and trust through the holding of tokens accumulated in stakes, allowing node owners to make delegations and build blocks, as they ascend within the system and obtain greater rewards. With this action you contribute to the ecosystem while ensuring the balance and stability of the platform's native token, this is because it maintains the full liquidity of your earnings in the ecosystem environment generating real utility.
What are the protocols looking for?
The consensus mechanisms are intended to ensure the security and efficiency of the system, but behind them is a high-level engineering team in charge of making the most of the Blockchain's potential to overcome the problems generated by usage and high demographics.
Through the protocols, information encryption, data processing at the nodes and the creation of blocks for distributed storage are achieved. The consensus algorithm is responsible for distributing the data randomly to guarantee the untrusted system and autonomy.
Other Blockchain challenges
Smart contracts and blockchain-nested transactions require scalable technology that meets demand as a function of time, for this, a decentralized platform must invest in technology and application development capable of adapting to growing demand and solve interoperability issues.
How does scalability work?
It is the quality of being able to grow along with the customer's needs. A scalable system is one that constantly evolves to keep up with demand and develops sufficient robustness for data processing and operational efficiency. Scalability is described as a function of time and strategic management of the different scenarios that arise in the encryption environment, making the system predictive and expandable as it grows.
What is an adaptive system?
It is nothing more than the availability of tools adapted to the needs of all users, taking into account both experienced customers and new adopters who need help to operate. Adaptability is related to the development of DAppS and back end advances that make the user experience more complete, easy and secure, having access to the range of products offered by the company.
Interoperability
The ability to solve complex operations; work in diverse environments and handle different types of programming language is part of interoperability.
A blockchain must offer as many solutions from a single site, for this it tries to operate with external blockchains, outside the main network, for a greater influx of work, data handling, applications and DApps. The client estimates to execute multiple operations with various tokens from a single location, this multi-platform quality is one of the biggest challenges for any virtual services company.
Conclusion
Cross-platform compatibility is the ability of a blockchain to handle different types of cryptocurrencies. the creation of applications for diverse smart contracts is an open source functionality, likewise, proof of work and proof of stake protocols prevent unwanted behaviors and protect transactions in order to make the Blockchain a secure technology to operate where the user is in control of their assets in an untrusted system. Finally the multiple tools and interface technology advancements lead to interoperability maximizing the range of customer action for a more complete user experience and encouraging results.
This has been an overview of Blockchain and Cryptocurrency that induces knowledge and the development of crypto skills, with the aim that the average user can take confidence and assume a secure attitude towards this innovative technology, but at the same time necessary to understand for those of us who make use of a decentralized platform.
Original content
2021
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