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Comparative evaluation of consensus mechanisms in cryptocurrencies
Author(s) -
Hazari Shihab S.,
Mahmoud Qusay H.
Publication year - 2019
Publication title -
internet technology letters
Language(s) - English
Resource type - Journals
ISSN - 2476-1508
DOI - 10.1002/itl2.100
Subject(s) - cryptocurrency , computer science , mechanism (biology) , incentive , proof of work system , set (abstract data type) , consensus , consensus algorithm , computer security , data science , artificial intelligence , multi agent system , economics , microeconomics , philosophy , epistemology , programming language
The Bitcoin cryptocurrency allows entities in a peer‐to‐peer network to reach consensus about the state of the blockchain through a set of cryptographic algorithms and economic incentives. Bitcoin uses a proof of work system, but there are other consensus mechanisms used by other cryptocurrencies. The performance of a cryptocurrency depends on the consensus mechanism used. This paper presents the results of a comparative evaluation that has been conducted on various significant consensus mechanisms. The unique characteristics, as well as drawbacks of each mechanism, are highlighted, together with their applications. The mechanisms are also classified into major types and those types are evaluated elaborately. The paper concludes with a discussion of the open challenges related to the available solutions.