Blockchain technology has gone far beyond speculations. It has gained much attention in form of commendations and criticisms from different quarters of the world. In fact, it’s all over the news, on the lips of both the young and the old. One may wonder why it has raised so much concern; however, it isn’t far-fetched why it is this way. Something which aims to revolutionize our world in a unique way would definitely gain attention.

Blockchain technology makes it possible to carry out transactions in a decentralized, safe and secure way. Also, with the blockchain public ledger, every user on the network has a copy of the details of transactions carried out. Moreover, it is impossible for an organization to gain full control of the network without the consent of others. In addition, blockchain tech has enabled the development of smart contracts — a necessary innovation today.

Painfully, the blockchain tech, as good as it is, was accompanied by quite a lot of inadequacies like slow transactions, high energy consumption, poor regulation, instability of blockchain assets, decreased mass adoption, and the likes. All of these things need to be improved upon to make the technology enjoy widespread adoption.

A Choice of Algorithms

The early generations of the blockchain tech were known to make use of the POW algorithm. Later, it was upgraded to POS, then DPOS. Today, these algorithms have not improved on the scalability of the blockchain tech which largely determines the speed. POW or PoW means “Proof of Work” and it is required in the validation of blocks. Also, POS or PoS is “Proof of Stake” while DPOS or DPoS is “Delegated Proof of Stake”.

Nerves’ Proof of Linkage

It is an automated algorithm that ensures better performance. It also improves security while still regulating the privacy and accessibility of data. From the name, one could draw an idea of how it functions. It links a system of blockchains (branched chains) with itself (Stem blockchain) and makes them to work in synchrony. Here, chains that are specialized for a variety of tasks and processes work together to produce desirable results.

Chains that perform similar tasks are linked together for the benefit of synergy. One can already tell what would result from this. There would be increased speed of transactions since the work responsibility is not placed on one chain but several other similar chains. There would also be a decrease in the energy used since the original amount of energy would be shared by the different chains that synergize. There are other benefits but to mention a few.

If you have ever taken time to study how ants behave, you would discover that they achieve a lot together. Many ants coming together can transport almost anything effectively. This is the order of the Proof of Linkage consensus algorithm. It is more or less based on team work for more productive output. Here, the team members are the various chains that perform similar tasks.

PROOF OF WORK (PoW)

This is an algorithm that is originally used on the blockchain. It is used to confirm transactions that go on in a block and consequently produce new blocks. Usually, the way this method verifies transactions is by solving complex mathematical problems. Once a block is verified using the PoW consensus algorithm, then tokens or cryptocurrencies are released to the miner who solves the computational problem as a reward.

PROOF OF STAKE (PoS)

This is an alternative to the PoW consensus algorithm. The PoS was developed to remedy the challenges of the PoW. Bitcoin used the PoW when it was invented which accounts for the slow transactions. Instead of channeling excess energy to solving computational problems on the blockchain, PoS uses an estimate of a miner’s worth in terms of the cryptocurrency he possesses.

For example, a person who has about 3 percent Bitcoin would be attributed to 3 percent mining power. On the other hand, a person with about 25 percent Bitcoin possession would access 25 percent mining power. This is a better alternative to the PoW consensus algorithm because it channels computation energy properly and limits the use of excess energy.

DELEGATED PROOF OF STAKE (DPoS)

This is a much more standard and quite fascinating consensus algorithm. This algorithm works on the principle of real-time voting — sometimes referred to as a form of digital democracy. It is very fair in that every token holder has an extent of influence in making decisions on what happens on the blockchain. Although, this depends on the amount of token each individual has. One advantage of this is that centralization is least here.

The token holders make a consensus about delegates on the blockchain. The integrity of these delegates is always ascertained because the smooth running of the blockchain rests on them. Sometimes, to demonstrate their commitments, the delegates may have to deposit their funds into a time-locked security account which can be seized in case of fraudulent behavior. This is called Deposit-based Proof of Stake.

The job description of the delegates includes the following:

Ensuring the functionality and smooth running of their node. Collating the transactions on the network into blocks. Validating transactions by signing and broadcasting the blocks. Ensuring that issues experienced are solved in a democratic way.

The Challenge of PoW, PoS and DPoS

Essentially, an improvement is required since these consensus algorithms are not completely what people would want. Each succeeding one seems to be better but there are still inadequacies that each of them experience. The paragraphs below give a brief explanation of inadequacies in the above listed consensus algorithms.

The PoW algorithm is inadequate in many respects. Here, miners compete for cryptocurrencies by solving computational problems. Bitcoin, for example, uses this method. As more coins are mined, it becomes more difficult to mine more coins. As a result, the mining power is reduced and control is gradually handed over to the miner who is able to keep up. If a miner attains a possession of 51 percent of the Bitcoin network, then he would acquire a great deal of control.

The PoS algorithm on the other hand is quite advantageous. The problem with it is that it does not distribute mining power evenly. It is more like the maxim that says, “The rich become richer while the poor become poorer”. That perfectly describes the PoS algorithm. Computational mining power is distributed among miners based on the value of crypto assets they possess.

With the DPoS, much of the problem can be attributed to the integrity of the delegates. Since the smooth running of the blockchain rests on the delegates, then their effectiveness or ineffectiveness will make or mar the transactions on the blockchain respectively.

What to Gain from Proof of Linkage

The capacity of Nerves blockchain to link with other blockchains makes the following possible:

Increased speed as more blockchains share in the task that is originally attributed to one. Improved scalability and improved liquidity of the assets on the network. This is because the task of one blockchain is now split among other blockchains, thereby making it possible to accommodate larger volumes of transactions. Transfer of value between blockchains is now made possible. A user can switch and exchange values within the respective blockchain. The network pattern (branched blockchain networks linked to the stem blockchain) causes a decreased block size and an easy block data generation. Increased decentralization and reduced documentations.

To end

The improved consensus algorithms are good and still useful, but isn’t “better results” better? Proof of linkage aims to achieve much output with as minimum input as is possible. This is truly incredible and an innovation to embrace since the heart cry of the world is “giving less for more returns.”