Proof Of Bit-Block

What Is a Bit-Block Algorithm?

In the context of cryptocurrencies, the consensus algorithms are a crucial element of every Blockchain as they are responsible for maintaining the integrity and security of these distributed systems.

Proof Of BitBlock

BitBlock Consensus Mechanism

A consensus algorithm may be defined as the mechanism through which a Bitcoin Dollar BitBlockchain network reach consensus. Public (decentralized) blockchains are built as distributed systems and, since they do not rely on a central authority, the distributed nodes need to agree on the validity of transactions. This is where consensus algorithms come into play. They assure that the protocol rules are being followed and guarantee that all transactions occur in a trustless way, so the coins are only able to be spent once.

In any centralized system, like a database holding key information about driving licenses in a country, a central administrator has the authority to maintain and update the database. The task of making any updates – like adding/deleting/updating names of people who qualified for certain licenses – is performed by a central authority who remains the sole in-charge of maintaining genuine records. Public blockchains that operate as decentralized, self-regulating systems work on a global scale without any single authority. They involve contributions from hundreds of thousands of participants who work on verification and authentication of transactions occurring on the blockchain, and on the block mining activities.

In such a dynamically changing status of the blockchain, these publicly shared ledgers need an efficient, fair, real-time, functional, reliable, and secure mechanism to ensure that all the transactions occurring on the network are genuine and all participants agree on a consensus on the status of the ledger. This all-important task is performed by the consensus mechanism, which is a set of rules that decides on the contributions by the various participants of the blockchain. There are different kinds of consensus mechanism algorithms which are used by BitBlockchain and work on different principles.

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