What is the consensus algorithm of the block chain?

With public key cryptography, the basic features of the transaction (eg, ownership and amount) are easy to verify, and the public key cryptography acts through basic mathematical properties.

There is a consensus algorithm to mitigate the “double flower” attack, where malicious behavior can spend the same coin twice (or any number). Solving this problem requires caution that determines which of the two expenses is effective.

This issue has no pure mathematics solution. Instead, the consensus algorithm uses a combination of cryptography and economic incentives to maintain functional networks.

Bitcoin consensus Based on a simple rule – the longest block chain is the only valid. The system was later referred to as Zhongcheng consensus to commemorate the anonymous founders of Bitcoin.

In order to make this concept, adding blocks to each chain is definitely difficult. This is the way the workload proves and the land of mine. Each block is protected by encryption techniques, which require miner to provide computing capabilities to add blocks.

Since computational power is proportional to electricity, Bitcoin is directly protected by basic physical quantities – energy. Under the equity certificate, the network protects yourself through the commitment of its equity – a certain amount of capital in the form of a network. Its security is designed to directly stem from the perceived economic value of the network – how high is the cost of purchasing most equity.

However, the POW network also has a close correlation between economic value and security. The miner received a coin as a reward, which means that the value of the coin is, the more money they earn.

New miners are incentive to add more hardware and spend more energy to get their reward share – this improves security. Over time, the profit of each miner tends to be economic balance determined by the electricity price.

Therefore, the amount of electricity dedicated to mining depends on the emission rate and market value of the Currency, and it is largely destroyed with the performance or activity of the network. Many POS supporters think this is the biggest problem of POW.