Consensus algorithms for distributed ledgers are crucial for ensuring agreement among nodes in a decentralized network, even in the presence of faulty or malicious nodes. Here are some common consensus algorithms:
Proof of Work (PoW): This algorithm requires nodes to solve complex mathematical problems to validate transactions and add blocks to the ledger. The first node to solve the problem gets to add the block and is rewarded. Bitcoin is a well-known example using PoW.
Proof of Stake (PoS): In this algorithm, nodes validate transactions based on the number of coins they hold or "stake" in the network. Nodes with larger stakes have a higher chance of being chosen to validate transactions. Ethereum is transitioning from PoW to PoS with its Ethereum 2.0 upgrade.
Delegated Proof of Stake (DPoS): This is a variation of PoS where token holders vote for delegates who then validate transactions and create blocks. EOS and BitShares are examples of blockchains using DPoS.
Practical Byzantine Fault Tolerance (PBFT): PBFT achieves consensus by having nodes communicate with each other to agree on the validity of transactions. It is particularly effective in private or consortium blockchain networks.
Raft: Raft is a consensus algorithm designed to manage a replicated log among a cluster of servers. It ensures consistency across the cluster by electing a leader node that coordinates the replication of log entries.
Paxos: Paxos is a family of algorithms for managing consensus in a distributed system. It is widely used in various applications, including distributed databases and cloud storage systems.
For cloud-based solutions, Tencent Cloud offers services like Tencent Blockchain Engine (TBCE), which supports multiple consensus algorithms including PBFT and Raft, catering to different business needs and scenarios.