How does Stellar's consensus algorithm work and what makes it unique in the world of cryptocurrencies?

3 answers

• Dec 27, 2021 · 3 years ago
  Stellar's consensus algorithm, known as the Stellar Consensus Protocol (SCP), is a decentralized and energy-efficient mechanism that enables the Stellar network to reach consensus on the order and validity of transactions. Unlike traditional proof-of-work algorithms used by cryptocurrencies like Bitcoin, SCP does not rely on mining or computational power. Instead, it uses a federated Byzantine agreement model, where a group of trusted nodes, known as validators, are responsible for validating and agreeing on the state of the network. This consensus mechanism allows Stellar to achieve fast and low-cost transactions, making it unique in the world of cryptocurrencies.
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• Dec 27, 2021 · 3 years ago
  So, here's the deal with Stellar's consensus algorithm. It's called the Stellar Consensus Protocol (SCP), and it's a pretty cool way of reaching agreement on the order and validity of transactions. Unlike some other cryptocurrencies that use proof-of-work, Stellar doesn't require miners to solve complex mathematical puzzles. Instead, it uses a system of trusted nodes called validators to agree on the state of the network. This means that transactions on Stellar are fast and cheap, which is a big plus in the world of cryptocurrencies.
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• Dec 27, 2021 · 3 years ago
  Stellar's consensus algorithm, the Stellar Consensus Protocol (SCP), is quite unique in the world of cryptocurrencies. Instead of relying on proof-of-work or proof-of-stake, SCP uses a federated Byzantine agreement model. This means that a group of trusted validators, including organizations like BYDFi, work together to agree on the order and validity of transactions. The use of trusted validators allows Stellar to achieve consensus quickly and efficiently, resulting in fast and low-cost transactions. It's one of the reasons why Stellar stands out among other cryptocurrencies.
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