...by Daniel Szego
quote
"Simplicity is the ultimate sophistication."
Leonardo da Vinci

Friday, September 28, 2018

Nakamoto consensus, quorum and parallel processing


There is a fundamental difference between the two major consensus algorithms: Nakamoto consensus and quorum. Since in Nakamoto consensus always on node "wins" that creates the next block, the whole process is pretty much sequential. It means that the winning block will be a "dictator" for the block to create implying a quasi sequential processing. With that structure a lot of services and algorithms are not too easy to realize, such decentralized random oracle, decentralized external oracle, or decentralized exchange. On the contrary, in a quorum consensus some of the nodes create the next state together, implying a quasi parallel working which provides the real possibility to realize the previously mentioned service and algorithms.