What role does consensus play in a permissioned blockchain used for digital currencies?
Gonzales StillingDec 26, 2021 · 3 years ago1 answers
In a permissioned blockchain used for digital currencies, what is the significance of consensus and how does it impact the overall functioning of the blockchain?
1 answers
- Dec 26, 2021 · 3 years agoIn a permissioned blockchain used for digital currencies, consensus is of utmost importance. It is the process by which participants in the network come to an agreement on the validity of transactions and the order in which they are added to the blockchain. Consensus ensures that all participants have a shared view of the blockchain and prevents any single entity from having control over the network. This is particularly important in permissioned blockchains, where the participants are known and trusted. Consensus algorithms, such as Practical Byzantine Fault Tolerance or Raft, are used to achieve agreement among the participants. These algorithms allow the blockchain to continue functioning even if some participants are malicious or faulty. Overall, consensus plays a critical role in maintaining the integrity and security of a permissioned blockchain used for digital currencies.
Related Tags
Hot Questions
- 96
What are the tax implications of using cryptocurrency?
- 89
What are the best practices for reporting cryptocurrency on my taxes?
- 73
How can I minimize my tax liability when dealing with cryptocurrencies?
- 65
What are the advantages of using cryptocurrency for online transactions?
- 62
Are there any special tax rules for crypto investors?
- 55
What are the best digital currencies to invest in right now?
- 49
What is the future of blockchain technology?
- 48
How does cryptocurrency affect my tax return?