chapter  Chapter 3
39 Pages

Optimized Consensus Mechanism

WithJian Gong, Wei Xu

SHA256 algorithm was one of the reasons people thought that led to professional mining machines and mining pools, since this algorithm could be easily computed. The success of Litecoin induced a variety of algorithmic innovations. Between 2012 and 2014, algorithmic innovation has always been a hot topic in community discussions, and every currency that uses innovative algorithms can make a new wave. Ethereum’s Proof-of-Work (PoW) algorithm is called Ethash, which is slightly different from Bitcoin’s PoW algorithm, which makes it possible to mine with ordinary hardware. Tendermint consists of two main technologies: the blockchain consensus engine and a common application interface. One of the most important parts of Casper’s proof-of-stake (PoS) consensus is checkpoints. The chapter discusses the three main PoS protocols that use PoS in cryptocurrencies: Casper the Friendly Ghost (CTFG), Casper the Friendly Finality Gadget and Tendermint. CTFG is a correct construction consensus agreement designed to combat the real environment of oligopoly.