Table of Contents
What is data integrity?
It is a concept and process of ensuring that the information within a given organization is reliable and accurate. Following the process, organizations not only protect the data integrity of their database but also make sure they have the correct data in place and are only accessible to the authorized person.
Data integrity in blockchain?
Blockchain technology could be the key to achieving the highest levels of data integrity. Blockchain technology has been developed for the security of data without modification at any point.
Blockchain has an immutability property which means that once data has been recorded and a block has been added to the ledger one can modify, or delete the data. The ledger is backed by timestamp and nonce so everyone participating in the network can see the transaction and data. So Blockchain may be the solution to achieving the highest levels of data integrity.
What is a consensus algorithm?
The community governs a set of rules in consensus algorithms to accept or reject transactions in the network. All nodes in the network must agree to a consensus algorithm for verifying transaction details and ordering blocks.
There is no centralized authority. So, everyone has to trust the nodes. However, there are issues with synchronization, proper functioning, node survival, and node behavior. Nodes may intend to behave properly but are malfunctioning due to a failure in the node. It is also possible that misbehavior will occur as a result of a planned attack. As a result, a consensus mechanism is required to keep track of the situation and ensure the network’s stability and usability.
A consensus is an agreement between all parties involved. The agreement once finalized Is updated in the system and distributed across all nodes, which then behaves the same across the entire network.
There are various consensus algorithms used as per the requirements and use case properties they include security, scalability, energy efficiency, decentralization,
Importance of consensus algorithms
Decentralization: As consensus algorithms are decentralized, participants validate transactions independently with the majority. They are removing a concept of central authority for validating nodes and data. This helps in avoiding any incorrect transactions.
Integrity: Consensus algorithms help prevent different nodes in a distributed network from holding different values for the same data, making the data accurate, and consistent.
Scalability: A high number of transactions occur within blockchain networks. A powerful consensus mechanism can ensure that all transactions are supported and their security is preserved.
When the blockchain network is supported by a strong consensus mechanism, it can manage enormous loads. Furthermore, there are no compromises on performance.
Types of Consensus Algorithms
Proof of Work:
The blockchain’s first application bitcoin uses the consensus algorithm pow. The main work of the pow algorithm is to distribute accounting rights and hashing power among nodes. The node calculates the nonce value based on its previous block. The node who calculates the hash value or nonce first that block is added to the chain and the node also gets some reward.
Advantage and Disadvantage
Proof of Stake
This is the alternative algorithm to proof of work, The consensus algorithm used in blockchain for validating and adding transactions to the chain is Proof of Stake. As proof of work use miners to solve the complex mathematical value known as nonce. Pos depends on validators who have staked more cryptocurrency in the network to add and verify the transaction. Staking huge amounts of crypto makes it possible for miners will be chosen among them. Validators are incentivized to add a block and confirm the transaction.
Advantage and Disadvantage
- Energy efficient in comparison to POW.
- Transaction speed is faster because of the proof of stake mechanism
- Participants with high staking may dominate the network
- Ethereum is the best example that uses Proof of Stake
Delegated Proof of Stake (DPos):
DPos is a consensus algorithm used in some blockchains to validate and add a transaction to the blockchain. The name suggests that a variation of proof of stake is used, relying on a smaller group of validators known as delegators to validate the transaction and add new blocks to the chain. In DPos token holder votes for delegates to represent the members in the validation process. Selector delegates validate transactions and add blocks to the blockchain.
Advantage and Disadvantage
- High transaction capacity
- A democratic system that includes network participation.
- Immune to centralization risk if few delegates are not being honest
- Eos is the best example of Dpos.
Leased Proof of Stake (LPoS) :
The leased Proof of Stake consensus technique is used in various blockchain networks to validate transactions and add new blocks to the chain. Leased Proof of Stake is a variant of proof of stake that enables even small token holders to participate in the validation process by leasing the tokens.
In the Leased Proof of stake algorithm token holders give their token in terms of lending to increase their values in staking. By doing this they try to improve and have a chance of becoming a validator in the chain. If the validator is successful then they distribute rewards based on staking of the token internally.
Proof of Authority (PoA):
In Proof of Authority, a group of validators is chosen to validate the transaction based on their reputation and experience.
Advantage and Disadvantage
- High speed in terms of transaction and efficiency.
- Cost of energy is low while comparing PoW and PoS.
- Centralized.
- Depends on validators.
Byzantine Fault Tolerance (BFT)
Byzantine Fault Tolerance is defined as the system’s capacity to accomplish its work correctly and establish consensus even if some parts fail to operate. In the context of blockchain technology, Byzantine Fault Tolerance is a consensus algorithm that makes it possible to achieve and reach an agreement even when some malicious attackers try to attack or a hacking attempt is made. Byzantine Fault Tolerance is designed to prevent common difficulties, such as when a collection of generals must coordinate an attack, but some of them broadcast false information. Byzantine Fault Tolerance addresses this problem by making some nodes add blocks by confirming valid transactions. If two-thirds of the total node agree on transaction validity then the block is considered as verified and is added to the network.
Practical Byzantine Fault Tolerance (PBFT)
Practical Byzantine Fault Tolerance is an expanded form of Byzantine Fault Tolerance that gives a high degree of fault tolerance in decentralized systems. It is commonly used as a private blockchain to secure an organization’s internal data. works by breaking down the consensus process into a series of steps that are repeated for each transaction. Each step involves a different node in the network, and each node is responsible for verifying the validity of the transaction before passing it on to the next node.
Advantage and Disadvantage
- High throughput
- Low latency
- Not scalable with large networks
- Lack of bonding as the number of nodes increase
- Hyperledger fabric is the best example of PBFT.
Conclusion
This technology facilitates decentralized ledger and distributed database storage, as well as communication between them. Nodes communicate via a peer-to-peer network. The nature of the system pushed the blockchain. To use consensus mechanisms to protect and maintain its database. Strengths and weaknesses are found in each consensus algorithm, and serious consequences for network security, decentralization, and performance can arise if the wrong one is selected.