Consensus Algorithms Beyond Proof of Work: A Comparative Study
DOI:
https://doi.org/10.63345/sjaibt.v2.i4.102Keywords:
Consensus Algorithms, Blockchain, Proof of Work, Proof of Stake, Byzantine Fault Tolerance, Scalability, Energy EfficiencyAbstract
Blockchain technology has become one of the most disruptive innovations of the 21st century, reshaping industries ranging from finance to healthcare. At the core of its design lies the consensus algorithm, the mechanism that ensures trust, reliability, and integrity in decentralized systems without relying on centralized authorities. Traditionally, Proof of Work (PoW) has been the most recognized mechanism, primarily popularized by Bitcoin. While PoW is robust and secure, it suffers from significant drawbacks including excessive energy consumption, scalability bottlenecks, and the centralization of power in mining pools. These limitations have triggered the development of alternative consensus algorithms that promise more efficiency, scalability, and sustainability.
Findings reveal that while PoS and its derivatives significantly reduce energy consumption and increase scalability, they introduce concerns of wealth concentration and validator centralization. PBFT, on the other hand, performs well in private or consortium blockchains but lacks scalability in large public networks. PoA enables rapid transaction processing but requires high trust in a limited set of authorities, making it more suitable for controlled environments. PoST offers a greener alternative but requires vast storage capacity, raising questions about accessibility and fairness. Hybrid models emerge as a promising direction, combining strengths of multiple algorithms to optimize performance across diverse contexts.
The study concludes that blockchain consensus is not a one-size-fits-all paradigm but rather an evolving ecosystem shaped by contextual requirements such as decentralization, sustainability, and governance. These insights have implications for global industries adopting blockchain, from financial institutions demanding secure and high-throughput networks to governments leveraging blockchains for digital identity systems. The trajectory of consensus development points toward adaptive, domain-specific, and hybrid solutions, marking a shift from universal dominance to contextual optimization.
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