A consensus algorithm is a mechanism that is used to verify each node on a blockchain network it ensures that each node runs the blockchain properly and fully.
Consensus algorithms can be simply defined as a super-imposed rule on each node that must be obeyed in order to keep the blockchain running and safe from attacks.
If you are into cryptocurrencies and blockchain technology, you should be familiar with Bitcoin's Proof of Work consensus and Steem's Proof of Staking but those listed below are not well known in the blockchain world.
Proof of Brain
Implementation: Steem SMT
Proof-of-brain is a consensus algorithm that encourages people to create and curate content. It enables the tokens to be distributed via "upvote" and "like" based algorithms, This consensus algorithm is aimed at increasing active participation in forums, blogs and websites like steemit.
This algorithm keeps the network decentralized and more secure because it requires the users/ nodes full participation.
Proof of Activity
Implementation: Steem Actifit
Proof-of-activity is a consensus algorithm first introduced by Actifit, this particular algorithm relies on automatic capturing of activities and requires users to provide proof of performing movements/activities throughout the day in order to receive rewards in actifit tokens on the steem blockchain. This algorithm helps keep the network decentralized.
Proof of Weight
Implementation: Filecoin, Algorand
The proof-of-weight consensus algorithm is somewhat similar to Proof-of-stake. In proof-of-stake, it is the number of tokens/coins being held that determine the probability of discovering a new block on the network, in order words the more tokens held the more you earn the lesser held the lesser you earn. In a POWeight system, relative weighted value is used in the determination of which node discovers a new block.
Proof of Knowledge
Implementation: Zcash , Monero , PIVX
Proof-of-Knowledge also is known as zero-knowledge proofs or zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) on the Z-cash blockchain is a consensus algorithm which lets you validate the truth of something without revealing how you know that truth to the verifier. This principle is based on an algorithm that takes some data as input and returns either ‘true’ or ‘false’.this consensus algorithm is most used on privacy coins like monero, zcash etc.
Proof of Authority
Implementation: PoA Network , Ethereum Kovan Testnet
Proof-of-Authority is a consensus algorithm where transactions and blocks are validated by approved accounts, known as validators. These validators run software allowing them to put transactions in blocks. The process is automated and does not require validators to be constantly monitoring their computer. In this process the validators basically stake their identity because they are the authority that other nodes receive their truth from, these validators are the administrators of the network. This consensus makes the blockchain centralized because only a few administrators can/ or will be selected.
Amongst all the consensus algorithms listed above which is your best? Leave a comment and tell us why and feel free to add yours in the comments if it wasn't listed.
Posted from my blog with SteemPress : http://blockspill.com/5-consensus-algorithms-you-probably-didnt-know-about/