What Consensus Model can reach the required speed for Blockchain transactions

What Consensus Model can reach the required speed for Blockchain transactions

There is a general misunderstanding of consultancy companies and tech-enthusiasts about the capabilities of time critical transactions in Blockchain systems like Ethereum or Bitcoin. This leads to frustration of people getting their hand on crypto currencies in real life and make them often turn their back on the technology. If you dive down deeper in the understanding and even the beauty of the theory, you will find out, that this topic has a lot of different aspects. The most important is private vs. public chain and the way the acting accounts trust each other. The other parameter is the number of miners the distributed consensus is dealing with to make a decision. To have an idea of the computing power that is necessary to run the Proof of Work consensus for the Bitcoin network - Bitcoin could consume as much electricity as denmark by 2020 (by Sebastiaan Deetman). So if you leverage the use of Blockchain in the manner it is discussed as a mainstream technology, you will simply fail because of the contrasts between duration and the numbers of transactions. So the solution for this is not a short answer but a discussion about possible ways to achieve the goal. So please tell us your opinion or solution and if you want to dive in further, join our BlockchainLAB at https://my.fintechheadquarter.de/en/registerlab.

Gibran Armijo

Digital, values-based banking | Conscious fintechs

8 年

I'll be keeping an eye on this post and the comments, thanks Oliver for sharing.

George Gor

Blockchain, Bitcoin or FinTech? Being mass media star is your dream? Ask me to help. I'm CEO at CoinIdol.com News Outlet

8 年

Oliver Naegele, good ideas. Do you want to share your ideas with readers of world blockchain&fintech news outlet CoinIdol.com? Ping me with PM.

Jeroen van Oerle, CFA

Portfolio Manager Global Fintech Equities LOIM | Global Trends Investor | Innovation | Board member | Tokenized Asset Management

8 年

We argue in our whitepaper (uploaded in my profile) that proof of stake in a private blockchain is the most practical method of validation for the financial sector. But there is not only one "best" consensus model since it is very dependent on the user group and application. Many public services (like timestamping products or determining asset movements in value chains) benefit a lot from public consensus models like proof of work. But once there is a specific user group, proof of stake or proof of X can be a valid alternative.

要查看或添加评论,请登录

Oliver Naegele的更多文章

社区洞察

其他会员也浏览了