The currency that we use daily has the name fiat currency. Its circulation and control remain at the disposal of a central authority that is mainly a central bank and some other source in the form of government that manages the total inflow and outflow of the total amount of currencies. These currencies controlled by such authorities are called centralized currencies due to the control of the central authorities over them. Bitcoin mining is best started using the british bitcoin profit. To change these practices, the programmers started working on an option for this situation and came up with the cryptocurrency draft.
The concept of cryptocurrency was introduced to end the monopoly of centralized authorities and it was successful in attaining the goal. Today we know several cryptocurrencies that work on this platform and these are referred as to decentralized currencies aka cryptocurrencies. In this article, we are going to study many decentralized aspects of these types of currencies and will keep up with the pace of technology in the field of crypto.
Various cryptocurrencies like bitcoin, ethereum, or any other cryptocurrency use this type of technology for their survival. The validation and posting of these types of currencies is an important step in this field. The major concern about posting transactions is the security that is possible with this consensus, thus is an important field of interest. The network of crypto is based on P2P type and several computers are called by the name of nodes interconnected over the network and forming a closed loop of information to be shared among themselves. These nodes have to follow a proper set of rules and regulations that make the correct sequence of processes and thus blockchain consensus rules are as important as the process itself. The essential of this consensus is following a universal rule without any interference from external authority or entity. The transactions that include the validation, creation, and then validation of the whole chain are the important phases that make an important step of the consensus.
The process of validation
As a cryptocurrency network is a P2P form of network and there are several nodes present. So, no one can reach each node and then validate the process undergoing. This is where the consensus comes to the rescue. The consensus allows every node to work independently while the process undergoes its timely completion. At first, the checking of transactions is made by the nodes independently according to some pre-decided protocols. The protocols like proof of work then help the verified transaction to add to a new block. Then the nodes verify these newly created blocks and then the addition of the blocks to the blockchain is made. The main chain is decided by the nodes themselves by keeping a check on the calculations made by proof of work. It is only because of proof of work and another consensus rule that nodes made a final decision on deciding the main blockchain without following a different set of protocols.
Community and its consensus
The decentralized blockchain is by the people and for the people. It is generated as an open-source type of platform so that people can make changes and update it according to the needs of the generation. The changes that anyone makes are visible to every other user on the node and thus its confirmation for the process to decide as OK is necessary. The updates are sent in the form of a proposal and then validated and confirmed by the users. Thus, the community consensus plays an important role in the existence of the platform and is going to perform well in the future also.