Blockchain is emerging like never before and so is the developer ecosystem. Understanding the fundamental concepts of blockchain is a must for everyone related to this field. One such topic that needs the utmost attention to have your foundation strong is Distributed Ledger Technology and the consensus mechanism. In this article, we will explore various aspects of DLT and comprehensively dissect the consensus mechanism. Shall we begin?
Distributed Ledger Technology (DLT) is a decentralized digital data storage system that records the transactions and all the information about it at multiple places simultaneously. As the name implies, a Distributed ledger is a shared ledger that is replicated by all the nodes participating in the network. It is an unconventional database that doesn’t follow the classic client-server method of having to store data at a central device or administration.
There is no central authority that holds all the necessary data or transaction validation rather it is all distributed across the network. As we know in blockchain, every node maintains a copy of the ledger which ensures there isn’t any discrepancy due to a single point of control.
All the nodes and participants can view the ledger ensuring transparency throughout the network. In Ethrerneum the transactions are visible on the blockchain explorer.
One needs to be very careful before executing any transaction because once it’s done it can’t be further altered. This property is quite helpful in preventing fraud and double-spending.
Traditional databases like SQL, and MongoDB use centralized mechanisms for maintenance and control, this gives all the authority to a single point source. Generally, CRUD (create, read, update, and delete)is used for performing any and every operation on the data. This method is vulnerable to tampering, corruption, and loss.On the other hand, DLTs utilize the famous consensus algorithms to ensure transparency, integrity, security, and decentralization in maintaining and validating records.
Consensus mechanisms are a set of protocols that should be followed by the nodes in the network to agree on the state of the ledger. These mechanisms are used for the validation and authentication of transactions. These mechanisms ensure all nodes in the DLT agree on the state of the ledger. Consensus mechanisms denote the reliability and trustworthiness of DLT systems.
Here is an example of a renowned PoW method:
import hashlib
import time
def proof_of_work(block, difficulty=4):
prefix = ‘0’ * difficulty
while True:
block[‘nonce’] += 1
hash_result = hashlib.sha256(str(block).encode()).hexdigest()
if hash_result.startswith(prefix):
return block, hash_result
block = {‘transactions’: [], ‘nonce’: 0}
start_time = time.time()
new_block, block_hash = proof_of_work(block)
end_time = time.time()
print(f”Block mined: {block_hash}”)
print(f”Time taken: {end_time – start_time} seconds”)
Here is an example Pos code snippet:
class Validator:
def __init__(self, stake):
self.stake = stake
self.reputation = 0
validators = [Validator(stake) for stake in [100, 50, 30]]
selected_validator = max(validators, key=lambda v: v.stake + v.reputation)
print(f”Selected validator with stake: {selected_validator.stake}”)
Some of the developer tools are as follows:
Consensus mechanisms are quite scalable, handling the increasing number of transactions well. Some popular mechanisms like Pos protect against Sybil attacks. Hence are secure to a greater extent. PoS is more energy-efficient than PoW.
Lightning Network: Bitcoin uses this off-chain fix for quicker cheaper transfers. It sets up payment paths between users. Plasma and Rollups: Ethereum scales with these tools. They handle trades off-chain and give the main chain a brief recap. This cuts down work for the main blockchain.
Data Partitioning: Sharding splits the blockchain into smaller easier-to-manage bits also known as shards. Each shard deals with its trades and smart deals. This eases the strain on the whole network.
Parallel Processing: Shards can tackle trades at the same time. This boosts how many trades the network can handle by a lot.
Some real-world applications of These mechanisms are Bitcoins utilizing Pow, Ethereum 2.0 using PoS, and Hyoperledger Fabric used by IBM and various other enterprises for private blockchains.
Following is a code snippet of the Ethereum smart contract:(Pos is used)
pragma solidity ^0.8.0;
contract SimpleStorage {
uint256 public storedData;
function set(uint256 x) public {
storedData = x;
}
function get() public view returns (uint256) {
return storedData;
}
}
We looked at the basic ideas behind DLT various kinds of distributed ledgers, and different ways to reach consensus. We talked about why these methods matter to keep data safe and accurate. We also gave some useful advice on how to put them into practice. Explore more about DLT and consensus. Try out different tools and systems, and help make decentralized tech bigger. Your next big idea is just waiting for you!
Also Read: Why Rust Programming Language is the Go-To for Blockchain Innovation
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