#blockchainservice Archives

Zero-Knowledge Proof & its Role in the Blockchain World

Posted on 08/05/202102/06/2021 by Anteelo Master

Over the past few years, we have become accustomed to the way large banks and other firms access and employ our personal information to deliver us an enhanced experience. We have over time given them a ‘green signal’ to the mechanisms that use our sensitive details to help us sustain in a certain way. But then entered the Blockchain technology and it totally changed everything.

The Blockchain technology brought various characteristics like transparency, immutability, decentralization, and distributed ledger into existence. It enabled users to act anonymously and perform transactions with high-end security.

[Before we look further, we strongly recommend taking the time to understand the basics of Blockchain.]

Blockchain, in simple terms, gave users control to their privacy and future back.

But, has Blockchain really succeeded in doing so?

In one word, the answer is NO.

Many blockchain networks use public databases. So, anyone having an internet connection can view the list of the network’s transaction history. They can see all the details associated with the transaction and your wallet details, but the name of the user will still be unknown to them. Instead, they will come across as a public key – the unique code representing the user on the blockchain network.

This way, the public key created via the cryptography technique safeguard your privacy to some extent. But, it is still possible for one to expose you via other techniques.

This put your anonymous cover blown; debunking the myth of Blockchain’s anonymity and privacy, and make you realize that –

The user’s sensitive information stored on a Blockchain network is only confidential, not anonymous.

Likewise, there are various blockchain networks governed by consensus algorithms to deliver high-end privacy and stability, but decentralization is considered as a second priority in such cases. In many such cases, the two parties do not trust each other. [To read about these consensus models in detail, check out this blockchain consensus algorithm guide.]

This, as a whole, gives a clear indication that Blockchain is not that anonymous and decentralized as many of its enthusiasts believe it to be. And even gives birth to various questions, such as –

Do Blockchain networks really need to be anonymous? How can Blockchain offer more anonymity and better privacy protection to their users?

In the present Blockchain networks, the transactions are recorded in the public ledger and are transparent in nature. Because of this, various reputed brands and markets like Wall Street are hesitating to adopt this technology as the confidentiality of client and transaction is a must for them. This, as a whole, is questioning if at all Blockchain web 3.0 will be able to impact businesses.

Coming to the second question, there are various concepts and methods like Coin mixing, Ringct, and Coin Join that are making transactions anonymous in Blockchain, but the one that is highly appreciated is Zero-Knowledge Proof.

The one will cover in detail in this article.

So, let’s begin with a simple definition of zero-knowledge proof.

What is Zero Knowledge Proof?

Zero-knowledge Proof is an encryption scheme proposed by MIT researchers Silvio Micali, Shafi Goldwasser, and Charles Rackoff in the 1980s. In this method, one party (Prover) can prove that a specific statement is true to the other party (Verifier) without disclosing any additional information.

With definition being cleared, let’s take an example to understand how zero knowledge proof works.

Example: Kids and Candy Bars

Suppose, two children – Bob and Alice, have received some candy bars from a party. Bob wants to know if Alice has got the same number of candy bars or not. But, at the same time, none of them is ready to reveal the exact number.

So, what they do is that Bob brings four lockable boxes in a room, assuming that the number of candy bars received will be 10, 20, 30, and 40. He labels each box with a value corresponding to the number of candy bars.

Then, Bob keeps the key to the box that defines the number of candy bars he received in his pocket (let’s say he got 30 candy bars) and throws away the keys of all other boxes. And he leaves the room.

Now, Alice enters the room with 4 small pieces of paper and writes ‘+’ on one of them while ‘-’ on every other. Here, ‘+’ denotes the number of candy bars she got, while ‘-’ represents every other value.

She slips the paper piece with ‘+’ sign in one box (let’s say in the one representing 20 candy bars) and ‘-’ in the rest of the boxes. And she leaves.

Now, Bob enters the room again and opens the box whose key is in his pocket. Then, he checks if the box has a piece of paper with ‘+’ sign or ‘-’ sign. If it’s a ‘+’ sign, he realizes that Alice has an equal number of candy bars. While, in the other case, she doesn’t.

As we know that Alice has 20 candy bars and Bob has 30 candy bars, it is clear that Bob will find a ‘-’ sign in the lockable box whose key he has. This will make him clear that they both do not have the same number of candy bars.

At the same moment, Alice will re-enter the room and find a ‘-’ sign in Bob’s hand and she will also come to know that they have a different number of candy bars.

Note: By this method, Bob will learn that they do not have an equal number of candy bars. But, he will still have no clue if Alice has more or less candy bars than him, and vice versa.

Thus, the zero-knowledge proof maintains the privacy of users’ sensitive information, while making a transaction (in this case, the transaction is finding if they have the same number of candy bars or not).

Although this example would have helped you in understanding what exactly is Zero Knowledge Proofs (ZKPs), let’s refresh the concept with an image-

Now, as the concept of zero-knowledge proofs (ZKPs) is explained, it is the best time to look into what makes everyone prefer it over other available options.

Benefits of Zero Knowledge Proofs (ZKPs)

Simple – One of the prime advantages of zero-knowledge proof is that it does not involve any complex encryption method.
Secure – It does not require anyone to reveal any sort of information.

While these are the pros of Zero-knowledge proof, the concept has some disadvantages as well. A few of which are:-

Lengthy – In the zero-knowledge method, there around 2k computations, with each requiring a certain amount of time to process. This is the foremost con of going with zero-knowledge proof.
Imperfect – The messages delivered to verifier/prover might be destroyed or modified.
Limited – The zero-knowledge protocol demands the secret to be a numerical value. In other cases, a translation is required.

With this covered, let’s dig deeper into the technicalities before we evaluate when and how Zero-knowledge protocols can be introduced into the Blockchain ecosystem.

Starting with what are the core characteristics of a zero-knowledge proof.

Properties of Zero-Knowledge Proofs

1. Completeness

If the statement is true and both users follow the rules religiously, then the verifier would be convinced without any external help.

2. Soundness

If the statement is false, the verifier won’t be convinced in any scenario (even if the prover says that the statement is true for some small probability).

3. Zero-Knowledge

In both cases, verifier won’t be able to know any information beyond that the statement is true or false.

While the principles of Zero Knowledge Proof are covered, let’s talk about the different types of ZKPs a business enthusiast can invest in.

Types of Zero Knowledge Proofs

1. Interactive Zero-Knowledge Proof

In an interactive zero-knowledge proof, a prover performs a series of actions under the mechanism of mathematical probability to convince the verifier of a particular fact.

2. Non-Interactive Zero-Knowledge Proof (NIZKP)

As depicted from the name, Non-interactive zero-knowledge proof does not require an interactive process. Meaning, the prover can generate all the challenges at once and the verifier(s) can later respond. This restricts the possibility of collusion. However, it requires additional machines and software to find out the sequence of experiments.

Note: It is possible to make a transition from non-interactive to interactive ZKP.

Where to Implement Zero-Knowledge Proof in Blockchain System?

1. Messaging

In messaging, end-to-end encryption is imperative so that no one can read your private message besides the one you are communicating with. To ensure security, messaging platforms ask users to verify their identity to the server and vice-versa.

But, with the advent of ZKP, they will be able to build end-to-end trust in the messaging world without leaking any extra information. This is one of the prime applications of zero-knowledge proof in the blockchain world.

2. Authentication

Zero-knowledge proof can also facilitate transmitting sensitive information like authentication information with better security. It can build a secure channel for the users to employ their information without revealing it. And this way, avoid data leakage in the worst scenarios.

3. Storage Protection

Another possible use case of zero-knowledge proofs (ZKPs) is in the field of storage utility.

Zero-knowledge proof comes with a protocol that not only safeguards the storage unit, but also the information within it. Needless to say, the access channels are also protected to give a seamless and secure experience.

4. Sending Private Blockchain Transactions

When talking about sending private blockchain transactions, it is utterly important to keep it out of the reach of the third parties. Now, while the traditional methods are somewhat protective, they have some loopholes.

This is yet another area where ZKP comes into play. The concept, when integrated wisely, helps in making it nearly impossible to hack or intercept the private blockchain transactions.

5. Complex Documentation

Since zero-knowledge proof has the potential to encrypt data in chunks, it enables one to control certain blocks to provide access to a particular user, while restricting access for others. This way, the concept protects the complex documentation from those not authorized to see them.

6. File System Control

Another place where you can see an effective zero-knowledge proof implementation is the file system.

The concept adds different layers of security to the files, users, and even logins that makes it quite difficult for one to hack or manipulate the stored data.

7. Security for Sensitive Information

Last but not least, Zero-knowledge proof also refines the way blockchain technology is revamping transactions.

ZKP adds a high-end security level to every block containing sensitive banking information like your credit card details and history, such that banks need to manipulate only required blocks when a user requests for information. Other blocks remain untouched and thus, protected.

So, these were some of the use cases of zero-knowledge proof in the blockchain environment. To make your brand presence in the market by building one of these, hire a blockchain app development company.

And in case you are confused about its real-world implementation, check for the following existing projects operating with the convergence of two.

Real-Life Examples of Convergence of Zero Knowledge Proofs and Blockchain

1. ZCash

ZCash is an open-source and permissionless blockchain platform that offers the functionality to keep transactions ‘transparent’ and ‘shielded’ as per the requirement.

In the former case, the transactions are governed by a t-addr, just like bitcoin transactions. While in the latter case, a zero-knowledge proof called zk-SNARKs is used and the transactions are controlled by a z-addr.

2. ING

ING is a Netherlands based bank that has introduced its own zero-knowledge blockchain. However, they have modified their zero-knowledge system to make it a zero-knowledge knowledge range proof to lower down the need for computational power.

This way, they have prepared their zero-knowledge system to elevate the impact of blockchain in fintech.

3. ZCoin

The company uses Zerocoin protocol, which is based on zero-knowledge proof, to enhance security and anonymity in the transaction process. However, what makes it distinct from other projects working on this concept is that it offers scalability too.

Though various international actors have started showing an interest in implementing the concept of zero-knowledge proof into the blockchain, the adoption pace is too slow. And the prime reason behind is the following set of challenges associated with the addition of ZKP into the blockchain environment.

Challenges You Might Face While Integrating ZKP into Your Blockchain Project

1. Absence of Standards

Since blockchain technology itself is at its early adoption stage, there are no standards, system and homogeneous languages that enables app developers and business prospects to interact with the concept of ZKP and harness its potential in an efficient way.

2. Scalability

Another challenge that restricts the adoption of zero-knowledge proof in the blockchain environment is scalability, provided such algorithms require high computing capacity to operate on a high level.

Wrapping Up

Now that the concept of Zero Knowledge Proof and its scope in the Blockchain domain (along with real-life examples) is clear to you, we expect to find you investing in the broader application of the concept while stepping into the decentralized world. But, in case you still have any queries, connect with our Blockchain consultants.

Business Benefits and Services of Blockchain

Posted on 23/06/202007/06/2021 by Anteelo Master

The real-world applications of blockchain are expanding by the minute. But the resources and skill sets needed for developing blockchain applications and hosting them are neither cost effective nor popularly available. Is blockchain as a service for business the answer of how to make blockchain technology accessible to an audience?

In this article, we are going to look into the BaaS solution for business works, the benefits of blockchain as a service, and how to choose the best BaaS providers operative in the market today.

Table of Content

What is Blockchain as a Service?
How Does Blockchain as a Service Business Model Works?
How Blockchain as a Service is Shaping Businesses?
The Region Wise Adoption of Blockchain as a Service?
The Top Blockchain as a Service Providers
A Look Into Self-hosting Blockchain Applications

What is Blockchain as a Service?

For offering the benefits of blockchain based services to a wider audience, the technology has started being offered in the cloud as a service business model. On the operational front, it is more or less similar to the SaaS, PaaS, and IaaS models which enables using cloud-based apps and storage.

It allows businesses of all types and sizes to access blockchain based technologies without investing in the in-house development. The BaaS model enables companies to access the blockchain provider’s service wherein they can develop blockchain applications at minimal cost. This benefit is what has made it a key part of the blockchain technology trends.

The only limitation of the BaaS solution for business is that it asks for a certain level of centralization since the transactions have to be funneled through the host’s blockchain services. And because the answer to how blockchain is used in business lies at the center of decentralization, companies tend to be wary of its adoption.

Key takeaways:

Blockchain-as-a-Service is third party cloud infrastructure and management that businesses use for developing and managing blockchain applications.
It operates as a web host which runs an app’s backend.
BaaS acts as a catalyst which leads to widespread adoption of blockchain technology.

How Does Blockchain as a Service Business Model Works?

Blockchain as a service business model describes the process through which third parties install, host, and maintain a blockchain network on the behalf of organizations. The service provider offers setting up of blockchain infrastructure and technology in return for fees.

In many ways, the role of blockchain as a service for business is similar to that of a web hosting provider. It enables customers to make use of the cloud based solutions for developing and hosting blockchain applications and smart contracts in the ecosystem managed by the provider.

Here is a visual showcasing the working of Hyperledger Cello Blockchain-as-a-Service, which is a BaaS-like blockchain module utility system and toolkit under the Hyperledger project.

The BaaS integration in traditional business provides support around allocation of resources, bandwidth management, data security features, and hosting requirements. The biggest impact of BaaS on business is that the enterprises can concentrate on their main business without thinking of the complexities around blockchain operation.

How Blockchain as a Service is Shaping Businesses

Businesses and consumers are willing to adapt blockchain technology. But the operational overhead cost related to development, configuration, operation, and maintenance of infrastructure along with the technical issues act as a barrier. The advantages of blockchain for SMEs, no matter how massive, are very resource intensive and energy consuming – thus preventing the technology’s mass adoption.

Renting a blockchain infrastructure in BaaS allows businesses to acquire the skillset needed for operating the blockchain infrastructure. Additionally, the investment needed for entering the technology segment is also lowered, since the service agreement can be easily scaled up or even terminated within short notice.

It offers a way for businesses to stay at the edge of technology without any unnecessary risks.

BaaS for startups

The opportunities of BaaS for businesses, especially small businesses, is deemed ideal for organizations which outsource the technological aspects, and are not very hands-down involved with the blockchain’s working mechanism. It enables these firms to get the understanding of the technology without having to develop their proprietary blockchain.

The integration of BaaS solutions is being used by a number of industries for things like identity management, supply chain management, and payments. Blockchain development services are emerging as the ideal solution for a number of SME challenges like elimination of middlemen, lack of transparency, etc.

Use cases of Blockchain as a Service for business

Document tracking – Blockchain technology offers a distributed, immutable document tracking system. By keeping the documents on blockchain, all the participants are given equal access to the information. Additionally, blockchain technology is immutable, thus ensuring that the documents are secured.
Data storage – With the data stored in the decentralised blockchain, the amount of data loss risk is reduced by manifold. The regulated industries like healthcare, real estate, etc benefit a lot from this immutable, secure facility of data storage on blockchain.
Contract execution – Under the smart contracts service of blockchain, a platform is provided for the contract execution which promises high transparency levels. Its distributed nature implies that all the parties should be equally informed.

The benefits of Blockchain as a Service lies in the unraveling of the several use cases that are yet to be emerged. It offers enterprises an opportunity to work on those use cases without making any large term commitments. All they would have to do is partner with a blockchain service company and then fully embrace Blockchain’s capabilities.

Now that we have looked into how is blockchain as a service valuable for SMEs and enterprises, let us look into its regional adoption.

The Region Wise Adoption of Blockchain as a Service?

The impact of BaaS on business has led to a huge demand for the service – a sign of which can be seen in the fact how the BaaS market growth is poised to be USD 24.94 Bn by 2027.

The worldwide market of BaaS is big around the US, Mexico and Canada. One prime reason behind this is the presence of SMEs and large businesses operating in the US location along with a willingness to combine the technology with the public utilities services.

Europe has also been seen as the leading BaaS market. One of the major drivers of blockchain and BaaS adoption has been the government support from different countries.

The Asia Pacific (APAC) region is the third-most biggest market for the BaaS integration. Driven by the BaaS integration in traditional businesses and growing investment in Japan, China, and South Korea, the technology is poised to grow in the region.

To take the adoption of blockchain as a service for business further, a number of tech companies have emerged as BaaS providers. Here are a few of them:

The Top Blockchain as a Service Providers

A Look Into the Alternative – Self-hosted Blockchain

Up until this point, we have looked in the BaaS ecosystem and how Blockchain as a Service is influencing the small business, in addition to the list of top providers. While it all suggests that it is a good option to go with this approach, businesses can in fact lose out on the essence of decentralization – the foundation of blockchain fundamentals.

So what is the alternative? The answer is Self-Hosted Blockchain.

When we talk about the Self-Hosted Blockchain app cost, the ownership amount tends to be a lot higher because of the startup costs, retirement costs, and operational costs. Moreover, the amount of developing and deploying a smart contract under this model can amount to up to hundred thousand dollars or more.

In contrast, a blockchain app hosted on cloud as a BaaS offering can be around $0.29 per allocated CPU hour. This means, businesses would only have to pay as they go and only for the service units used.

The costs of the BaaS model vary on factors such as number of concurrent transactions, transaction rate, and the payload size on transactions, etc.

Blockchain Consensus Method: What You Need to Know

Posted on 22/02/201921/06/2021 by Anteelo Master

Blockchain consensus is a decentralized distributed network that offers higher transparency, security, and immutability.

We all know that.

But, have you ever wondered how it is able to achieve all this?

Who governs this network and verifies every transaction, provided there is no centralized authority?

Well it’s Blockchain consensus algorithms – The core part of Blockchain development world that we will be talking about in this comprehensive guide.

TABLE OF CONTENTS:

Definition of Blockchain Consensus Algorithm
Objectives of a Consensus Mechanism
Properties of a Good Blockchain Consensus Mechanism
Consequences of Relying Upon a Bad Consensus Protocol
Blockchain Consensus Algorithms that are Popular in the Market
1. Proof of Work (PoW)
2. Proof of Stake (PoS) and Its Variations
3. Byzantine Fault Tolerance (BFT) and Its Derivatives
4. Direct Acyclic Graph (DAG)
5. Proof of Capacity (PoC)
6. Proof of Burn (PoB)
7. Proof of Identity (PoI)
8. Proof of Activity (PoA)
9. Proof of Elapsed Time (PoET)
10. Proof of Importance (PoI)

What is Blockchain Consensus Algorithm?

The simplest answer to what is Blockchain consensus algorithm is that it is a procedure via which all the peers of a Blockchain network reaches to a common acceptance or consensus about the real-time state of the distributed ledger.

A consensus mechanism enables the blockchain network to attain reliability and build a level of trust between different nodes, while ensuring security in the environment. This is the reason why it is one of the vital parts of every Blockchain app development guide and every dApp project in the distributed ledger environment.

These algorithms operate on the ground of different objectives, a few of which we will be covering in the next section of this article.

Objectives of Blockchain Consensus Mechanism

1. Unified Agreement

One of the prime objectives of consensus mechanisms is attaining unified agreement.

Unlike centralized systems where having a trust on the authority is necessary, users can operate even without building trustin on each other in a decentralized manner. The protocols embedded in the Distributed blockchain network ensures that the data involved in the process is true and accurate, and the status of the public ledger is up-to-date.

2. Align Economic Incentive

When it comes to building a trustless system that regulates on its own, aligning the interests of participants in the network is a must.

A blockchain consensus protocol, in this situation, offers rewards for good behavior and punish the bad actors. This way, it ensures regulating economic incentive too.

3. Fair & Equitable

Consensus mechanisms enable anyone to participate in the network and using the same basics. This way, it justifies the open-source and decentralization property of the blockchain system.

4. Prevent Double Spending

Consensus mechanisms works on the basis of certain algorithms that ensures that only those transactions are included in the public transparent ledger which are verified and valid. This solves the traditional problem of double-spending, i.e, the problem of spending a digital currency twice.

5. Fault Tolerant

Another characteristic of Consensus method is that it ensures that the blockchain is fault-tolerant, consistent, and reliable. That means, the governed system would work indefinite times even in the case of failures and threats.

Currently, there are a plethora of Blockchain consensus algorithms in the ecosystem and many more are heading to enter the marketplace. This makes it imperative for every Blockchain development company and enthusiastic Entrepreneur to be familiar with the factors that defines a good consensus protocol, and the possible effect of going with a poor one.

So, let’s begin with determining what makes a Blockchain consensus a good one.

Properties of a Good Blockchain Consensus Mechanism

1. Safety

In a good consensus mechanism, all the nodes are capable of generating results that are valid according to the rules of protocol.

2. Inclusive

A good consensus mechanism ensures that every particular node of the network participates in the process of voting.

3. Participatory

A consensus mechanism where all the nodes actively participate and contribute to updating database on Blockchain is called a Good consensus model.

4. Egalitarian

Another trait of a good mechanism is that it gives equal value and weightage to every vote received from the node.

With this attended to, let’s find out what happens when you do not consider these factors and introduce a poor consensus model to your development process.

Consequences of Choosing a Bad Consensus Protocol

1. Blockchain Forks

Choosing a poor blockchain consensus method increases the vulnerability of the chain. One such vulnerability that is faced by the blockchain enthusiasts and developers is Blockchain Forks.

Blockchain forks, in a layman language, is a situation or circumstances under which a single chain diverges into two or more. A detailed explanation about Blockchain fork and its types is available in the video embedded below.

When a Blockchain fork occurs, the application begins operating in an unpredictable manner, creating two or more diverged nodes ahead.

2. Poor Performance

When a bad consensus mechanism is considered, either the node gets malfunctioned or suffer from network partition. This delays the process of exchanging messages between nodes and increases the latency of the application, which ultimately lowers down the performance level.

3. Consensus Failure

Another effect of incorporating a bad consensus mechanism to your business model is consensus failure. In this situation, a fraction of nodes fails to participate in any process and thus, in the absence of their votes, the consensus fails to deliver accurate and desired outcomes.

With the basics of Blockchain consensus methods now covered, let’s dive deeper into the topic and look at the popular types of consensus mechanism.

Blockchain Consensus Algorithms that are Popular in the Market

1. Proof of Work (PoW)

Developed by Satoshi Nakamoto, Proof of Work is the oldest consensus mechanism used in the Blockchain domain. It is also known as mining where the participating nodes are called miners.

In this mechanism, the miners have to solve complex mathematical puzzles using comprehensive computation power. They use different forms of mining methods, such as GPU mining, CPU mining, ASIC mining, and FPGA mining. And the one that solves the problem at the earliest gets a block as a reward.

However, the process is not that easy. A puzzle can be solved only via trial and error method. Additionally, the level of complexity of the puzzle increases with the speed at which blocks are mined. So, it becomes mandatory for one to create a new block within a certain time frame to cope up with the difficulty level.

The Proof of Work mechanism is used by multiple cryptocurrencies like Bitcoin, Litecoin, ZCash, Primecoin, Monero, and Vertcoin to name a few.

In terms of its implementations, the Proof of Work (PoW) has not only influenced the financial industry, but also healthcare, governance, management and more. It has, in fact, offered the opportunity of multichannel payments and multi-signature transaction over an address for enhancing security.

2. Proof of Stake (PoS)

Proof of Stake is the most basic and environmentally-friendly alternative of PoW consensus protocol.

In this blockchain method, the block producers are not miners, but they act like validators. They get the opportunity to create a block over everyone which saves energy and reduces the time. However, for them to become a validator, they are supposed to invest some amount of money or stake.

Also, unlike that in the case of PoW, miners are provided with a privilege to take their transaction fees in this algorithm for there is no reward system in this consensus model.

This, as a whole, encouraged brands like Ethereum to upgrade their model from PoW to PoS in their Ethereum 2.0 update. Also, it helped various Blockchain ecosystem like Dash, Peercoin, Decred, Reddcoin, and PivX to function properly.

Now, while PoS solved various issues earlier associated with PoW, there were many challenges still undusted in the market. To mitigate those challenges and deliver an enhanced blockchain environment, several variations of PoS came into existence.

The two popular variations of Proof of Stake (PoS) are DPoS and LPoS.

Delegated Proof of Stake (DPoS)

In the case of Delegated Proof of Stake (DPoS), the participants stake their coin and vote for a certain number of delegates such that the more they invest, the more weightage they receive. For example: if user A spends 10 coins for a delegate and user B invests 5 coins, A’s vote gets more weightage than that of B.

The delegates also get rewarded in the form of transaction fees or certain amount of coins.

Because of this stake-weighted voting mechanism, DPoS is one of the fastest blockchain consensus models and highly preferred as a digital democracy. Some of the real-life use cases of this blockchain consensus mechanism are Steem, EOS, and BitShares.

Leased Proof of Stake (LPoS)

LPoS is an enhanced version of PoS consensus mechanism that operates on the Waves platform.

Unlike the regular Proof-of-Stake method where each node with some amount of cryptocurrency is entitled to add the next blockchain, users can lease their balance to full nodes in this consensus algorithm. And the one that leases the bigger amount to the full node have a higher probability of generating the next block. Also, the leaser is then rewarded with a percentage of transaction fee that has been collected by the complete node.

This PoS variant is an efficient and safe option for the development of public cryptocurrencies.

3. Byzantine Fault Tolerance (BFT)

Byzantine Fault Tolerance, as the name suggests, is used to deal with Byzantine fault (also called Byzantine Generals Problem) – a situation where the system’s actors have to agree on an effective strategy so as to circumvent catastrophic failure of the system, but some of them are dubious.

Learn more about the Byzantine Generals Problem through this video:-

The two variations of BFT consensus model that are prime in the Blockchain arena are PBFT and DBFT.

Practical Byzantine Fault Tolerance (PBFT)

PBFT is a lightweight algorithm that solves the Byzantine General’s problems by letting users confirm the messages that have been delivered to them by performing a computation to evaluate the decision about the message’s validity.

The party then announces its decision to other nodes who ultimately process a decision over it. This way, the final decision relies upon the decisions retrieved from the other nodes.

Stellar, Ripple, and Hyperledger Fabric are some of use cases of this blockchain consensus mechanism.

Delegated Byzantine Fault Tolerance (DBFT)

Introduced by NEO, the Delegated Byzantine Fault Tolerance mechanism is similar to DPoS consensus model. Here also, the NEO token holders get the opportunity to vote for the delegates.

However, this is independent of the amount of currency they invest. Anyone who fulfills the basic requirements, i.e, a verified identity, right equipment, and 1,000 GAS, can become a delegate. One among those delegates is then chosen as speaker randomly.

The speaker creates a new block from the transaction that is waiting to be validated. Also, he sends a proposal to the voted delegates who have the responsibility to supervise all the transactions and record them on the network. These delegates have the freedom to share and analyze the proposals to check the accuracy of data and honesty of the speaker. If, then, 2/3rd of the delegates validates it, the block is added to the blockchain.

This type of Blockchain consensus protocol is also called ‘Ethereum of China’ and can be a helpful resource in building a ‘smart economy’ by digitising assets and offering smart contracts on the blockchain.

4. Direct Acyclic Graph (DAG)

Another basic yet prime blockchain consensus model that every mobile app development services company working with Blockchain must be familiar with is DAG.

In this type of Blockchain consensus protocol, every node itself prepares to become the ‘miners’. Now, when miners are eradicated and transactions are validated by users itself, the associated fee reduces to zero. It becomes easier to validate transactions between any two closest nodes, which makes the whole process lightweight, faster, and secure.

The two best examples of DAG algorithm are IOTA and Hedera Hashgraph.

Though these are the prime consensus models in the development environment, many different blockchain consensus mechanisms have slowly and gradually starting gaining momentum, such as:-

5. Proof of Capacity (PoC)

In the Proof of Capacity (PoC) mechanism, solutions for every complex mathematical puzzle is accumulated in digital storages like Hard disks. Users can use these hard disks to produce blocks, in a way that those who are fastest in evaluating the solutions get better chances for creating blocks.

The process it follows is called Plotting. The two cryptocurrencies that relies on PoC blockchain consensus protocol are Burstcoin and SpaceMint.

6. Proof of Burn (PoB)

Considered an alternate solution to PoW and PoS in terms of energy consumption, Proof of Burn (PoB) consensus model works on the principle of letting miners ‘burn’ or ‘ruin’ the virtual cryptocurrency tokens, which further provides them with a privilege to write blocks in proportion to the coins. The more coins they burn, the more are the chances of picking the new block for every coin they get.

But, in order to burn coins, they are required to send it to the address where it couldn’t be spent for verifying the block.

This is widely employed in the case of distributed consensus. And the finest example of this consensus mechanism is the Slim coin.

7. Proof of Identity (PoI)

The concept of PoI (Proof of Identity) is just like that of the authorized identity. It is a piece of cryptographic confirmation for a users’ private key that is being attached to each particular transaction. Each identified user can create and manage a block of data that can be presented to others in the network.

This blockchain consensus model ensures authenticity and integrity of the created data. And thus, is a good choice for introducing in smart cities.

8. Proof of Activity (PoA)

PoA is basically a hybrid approach designed through the convergence of PoW and PoS blockchain consensus models.

In the case of PoA mechanism, miners race to solve a cryptographic puzzle at the earliest using special hardware and electric energy, just like in PoW. However, the blocks they come across holds only the information about the identity of block winner and reward transaction. This is where the mechanism switches to PoS.

The validators (shareholders appointed to validate transactions) test and ensure the correctness of the block. If the block was checked many times, the validators activate to a complete block. This confirms that open transactions are processes and are finally integrated into the found block containers.

Besides, the block reward is divided so that validators gain shares of it.

The two real-world implementation of this mechanism are Espers and Decred coins.

9. Proof of Elapsed Time (PoET)

PoET was introduced by Intel with an intent to take over cryptographic puzzles involved in PoW mechanism by considering the fact that the CPU architecture and the quantity of mining hardware knows when and at what frequency does a miner win the block.

It is based on the idea of fairly distributing and expanding the odds for a bigger fraction of participants. And so, every participating node is asked to wait for a particular time to participate in the next mining process. The member with the shortest hold-up time is asked to offer a block.

At the same time, every node also come up with their own waiting time, after which they go into sleep mode.

So, as soon as a node gets active and a block is available, that node is considered as the ‘lucky winner’. This node can then spread the information throughout the network, while maintaining the property of decentralization and receiving the reward.

10. Proof of Importance (PoI)

Introduced by NEM, PoI is a variation of PoS protocol that considers the role of shareholders and validators for its operation. However, this is not only influenced by the size and chance of their shares; various other factors like reputation, overall balance, and no. of transactions made through any particular address also plays a role in it.

The networks based on POI consensus model are expensive to attack on and rewards users for contributing to the network’s security.

The information shared so far would have helped you in differentiating the varied Blockchain consensus protocols.

However, to simplify it for you, here’s a blockchain consensus algorithms comparison table.

Samsung Integrates Blockchain into Their Business Model

Posted on 28/01/201917/06/2021 by Tushar

Blockchain is no longer a hyped technology. It made its own significant identity, beyond the technology behind cryptocurrency, and entered the business world significantly. The domain has made a room for itself in almost every niche industry and business, proving it to be nearly impossible to overlook the charisma of this technology. Seeing this, various startups and established brands entered the exciting space of Blockchain – with Samsung emerging as the torchbearer.

Samsung, the tech giant based in South Korea, took various steps towards establishing its presence in the Blockchain market. A few of the announcements and efforts they put in this direction are:-

1. Investing in Blockchain-Specialized Startups and Tools

Last year, Samsung invested around USD 8.1M in a Blockchain-based company Blocco and $4M in ‘KZen Networks’. While, this February, they partnered with HYPR – a Blockchain biometric encryption firm in the USA – and made an investment of around $1M.

2. Developing its Own Ethereum-Based Blockchain

The tech giant also took a step towards developing its own ‘Blockchain mainnet based on Ethereum platform’, which was announced to be either a private blockchain or a hybrid one. Also, they announced working on their own crypto token, called ‘Samsung Coin’ which would be used for crypto exchange or as a payment solution in the Samsung Pay app.

3. Adding Storage for Private Cryptocurrency Keys

Earlier this February, Samsung added storage for private cryptocurrency keys in their Galaxy S10 model devices. They introduced a wallet that enables users to store Bitcoin, Ethereum, and other such cryptocurrencies on their devices as well as make contactless payments using cryptocurrency.

4. Declaring Blockchain a Part of their Digital Transformation Network

In the month of May, the president and CEO of Samsung SDS disclosed that Blockchain will be one of the top technologies they will focus upon under their ‘Digital Transformation Network’.

5. Announcing Launch of New Products for Blockchain Integration

Also, they announced last month that they will be launching three new products to simplify the process of Blockchain integration with other platforms for entities that are trying to embrace the technology.

6. Releasing a Software Development Kit (SDK)

Samsung also unfolded new opportunities for Blockchain experts. They released a new software development kit (SDK) having a myriad of tools and functions for developing Blockchain and dApps.

This SDK provides developers with an opportunity to handle their Blockchain accounts easily and effortlessly and make transactions seamless by abstracted transfer APIs for every cryptocurrency. It also offers a payment gateway to software developers for cryptocurrency remittance with its UI.

Above all, it gives an opportunity to link not solely to but also to any cold wallet including Ledger and Trezor devices. It renders access to a ‘Blockchain specialized browser’ for decentralized web applications that offers a set of features related to easing the process of crypto payments and tools to predict fees using live crypto exchange rates. And in addition to this, it provides Blockchain and Ethereum developers with a chance to retrieve transaction history from Samsung’s ‘blockchain proxy node’.

These efforts, as a whole, are making it easier to cut down the cost of App development, except when you already have your own wallet logic.

7. Connecting dApps to its Blockchain Wallet

Another significant step that the Samsung team took towards building their presence in the Blockchain arena is the integration of decentralized applications to its Galaxy S10 wallet. The tech giant introduced 4 dApps to its wallet back in March, added 6 more apps into the list the day before yesterday, and today, they announced the addition of one more application into the list.

With this, the list of decentralized mobile applications that entered into the environment of Samsung’s Blockchain wallet are:-

Cosmee – a dApp for sharing beauty content.
CoinDuck – a merchant payment service.
Enjin – a Crypto-based gaming platform.
CryptoKitties – a platform for Crypto-collectibles.
The Hunters – a Crypto-based gaming platform.
MyCryptoHeroes – a Blockchain-powered gaming decentralized application.
Berry Pick – a social media dApp that rewards active users.
Misetoktok – a dApp to monitor air quality and pollution level in real-time.
Syrup Table – a network for reviewing and rating restaurants.
X-Wallet – a decentralized wallet application that supports Ether, Binance Coin, and Bitcoin.
Lympo – a Blockchain-based health and fitness startup that rewards LYM tokens, which can now be transferred to Samsung Blockchain Wallet and converted in real fiat money.

Besides, they also hinted that Pibble, Forecasting, and many more apps might be a part of this list – giving an indication that Samsung is planning to turn its Blockchain wallet into an App Store – just like Google Play Store and Apple App Store.

8.Collaborating for Blockchain-based Self-Sovereign Identification System

Samsung went into a consortium with popular tech giants and banks –Telcos, KT, LGUplus, KOSCOM, KEB Hana Bank, and Woori Bank – to create a blockchain network for deploying mobile authentication service.

With this service, the companies will cut down the intermediaries in the process and add the functionalities of transparency and security. They will empower users to safeguard their own data, including that related to the institutions and companies they have been a part of. Or better say, the will aid users to have a control on their data.

Currently, they are aiming to employ this blockchain-based self-sovereign authentication system to simplify job and hiring process by making it easier for users to verify and upload their documents and apply for a job.

However, they are planning to extend this service to various other domains and processes, such as hospital and insurance services and membership services in holiday resorts.

These efforts and investments have not just brought Samsung into the limelight of innovativeness, but have also established it as an example for other conglomerates to follow.