As we all know a technology have taken over the world so swiftly that it seems like somebody have waved his magic wand to make the world focused on one and only one topic that is Blockchain. We have taken out the most famous of all time stats report of statista which shows the size of the blockchain technology market worldwide from 2016 to 2021 (in million U.S. dollars).
This statistic presents the market for blockchain technology worldwide from 2016 to 2021. In 2017, the global blockchain technology market is predicted to reach 339.5 million U.S. dollars in size and is forecast to grow to 2.3 billion U.S. dollars by 2021.
But beside these stats the thing which tempts most of the interest of blockchain enthusiasts is the consensus mechanism of this revolutionary technology. Usually, the most popular consensus mechanisms used in blockchain are proof of stake, proof of work and relatively a new one, delegated proof of stake.
Putting the others aside, we shall be discussing on more of the most popular ones and that is Proof of Work. Proof-of-Work, or PoW, is the original consensus algorithm in a Blockchain network.
In Blockchain, this algorithm is used to confirm transactions and produce new blocks to the chain. With PoW, miners compete against each other to complete transactions on the network and get rewarded.
In a network users send each other digital tokens. A decentralized ledger gathers all the transactions into blocks. However, care should be taken to confirm the transactions and arrange blocks.
This responsibility bears on special nodes called miners, and a process is called mining.
The main working principles are a complicated mathematical puzzle and a possibility to easily prove the solution.
Proof of Work may look like the ultimate solution to all the problems plaguing the systems nowadays but actually it is what Mark Twain has said ‘Truth is stranger than Fiction’.
In a Proof-of-work network, the majority of voting power when implementing important changes to the system is divided among miners, developers and other crucial members of the community and due to this a heavy amount of nuisance is caused in various forms within the system
The main disadvantages released are huge expenditures, “uselessness” of computations and 51 percent attack.
- Huge expenditures: Mining requires highly specialized computer hardware to run the complicated algorithms. The costs are unmanageable and mining is becoming available only for special mining pools. These specialized machines consume large amounts of power to run that increase costs. Large costs threaten centralization of the system since it benefits.
- Uselessness of computations: Miners do a lot of work to generate blocks and consume a lot of power. However, their calculations are not applicable anywhere else. They guarantee the security of the network but cannot be applied to business, science or any other field.
- 51 percent majority attack: A 51 percent attack, or majority attack, is a case when a user or a group of users control the majority of mining power.The attackers get enough power to control most events in the network.They can monopolize generating new blocks and receive rewards since they’re able to prevent other miners from completing blocks.They can reverse transactions.
Definitely, not ‘the solution’. What about having a glimpse at the newly developed Delegated Proof of Stake? What are the disadvantages of Delegated Proof of Stake?
Well here are the advantages: less waste of electricity, faster consensus, and possibly more decentralization in practice.
And If our research is right than DPoS doesn’t have any serious disadvantages, it should be rather made obvious to use Delegated Proof-of-Stake validators within the core of any developed system as ideas and efforts have a serious worth which most of the blockchain enthusiasts are well aware of.
DDK platform have integrated this Delegated Proof of Stake and consensus mechanism giving its users the very best opportunities and investment programs. DDK have come up with the vision that is definite to stay in the market for a long time, looking for a prosperous future.