China-based blockchain platform Neo has recently developed a new iteration of its consensus algorithm, the Byzantine Fault Tolerance mechanism (dBFT 2.0), on its mainnet. Reportedly, the new algorithm will enable immediate transaction finality. It contains a new method of reintegrating failed nodes back into the network, and also adds a "commit phase" of consensus, mitigating forking issues by including a step that forces node assignment to new blocks.





Due to this commit phase, the consensus mechanism dBFT reportedly differs from the ones for top cryptocurrency blockchains Bitcoin and Ethereum.





The consensus mechanism is a proof-of-work (PoW) protocol for Bitcoin which will allow BTC miners to compete on making the next block, which means that there are competing forks on the blockchain. While Ethereum uses a PoW mechanism to both create and validate new blocks. Neo indicates that it can result in forks and potential transaction reversals.

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