Blockchain is a distributed decentralized network that provides immutability, privacy, security, and transparency. There is no third party and central mechanism present to validate and verify the transactions, yet every transaction in the Blockchain is considered to be completely secured and verified.
This is done by the presence of the consensus protocol, which is a core part of any Blockchain network.
By consensus, we mean that a general agreement has been reached.
In regards to blockchain, the process is formalized, and reaching consensus means that at least 51% of the nodes on the network agree on the next global state of the network.
Firstly we met the Proof of Work consensus mechanism by means of bitcoin, validators, also known as miners, hash the data they want to add, until they produce a specific solution. But it’s Inefficient with slow transaction speeds and expensive fees and has High energy usage.
Secondly; In proof-of-stake, miners are more likely to win additional blocks if they have more money. For instance, ether, in the case of Ethereum. In other words, proof-of-stake relies on “proof” of how much “stake” users have.
Miners demonstrate that they have cash at stake by expending energy through proof-of-work. While its environmental credentials are more impressive because it uses less energy, the approach hasn’t really been proven on the scale that proof-of-work platforms have.
Let’s think about an algorithm of validating blocks based on the node’s past behavior and contributions. Thus blockchain keeps its decentralized nature while remaining secure and scalable.
In this video, we will investigate the “IO ST” ecosystem, which is aimed to be the underlying architecture, for online services that meet the security and scalability needs of a decentralized economy.
The acronym IOST is composed of the Internet-of-Service, (IOS) and the word token, (T). The platform is intended for service providers and blockchain developers looking for a fast and reliable infrastructure.
The system split its data and state into shards. Each node is responsible for one shard of the system. The transaction speed of many long-established protocols like the Ethereum Blockchain is too slow to run valuable applications on it for mass adoption.