A Deeper Look at Blockchain Consensus Protocols

Blockchain is a significant departure from the way contracts and transactions have functioned for decades.

Typically, a third-party company processes and verifies credit card transactions but the blockchain doesn't require this action.

Blockchain protocols are crucial to creating trustworthiness in the blockchain world.

The two protocols that currently dominate the blockchain landscape are proof-of-work and proof-of-stake.

While PoW protocols are vulnerable to 51% attacks, in PoS networks anyone who gathers enough tokens to control the system is disincentivized from damaging the token's value.

Years from now it is possible the most prominent blockchain networks won't rely solely on PoS or PoW protocols.

Many blockchain startups are exploring more sophisticated and complex consensus protocols that will tackle scalability and security while staying true to blockchain's decentralized ethos.

Ethereum plans to switch to PoS later in 2018 and is reportedly developing sharding protocols, which divide consensus networks into smaller, concurrent and scalable systems.

Blockchain protocols reflect both the technological underpinnings of blockchain transactions and the power structures and values of the entire blockchain network they run on.

Future protocols need to be scalable, secure, and accessible for all blockchain participants.