Consensus Layer
Completion requirements
The Consensus Layer is a fundamental component of blockchain technology that ensures all nodes in a decentralized network agree on the state of the ledger. It governs how transactions are validated, blocks are created and added to the blockchain, and how consensus is reached among participants.
Here's a breakdown of its key functions
Transaction Validation:
- Nodes verify the authenticity and correctness of transactions before they are added to blocks.
- This involves checking signatures, transaction history, and ensuring compliance with blockchain rules.
Block Creation:
- Validator nodes bundle validated transactions into new blocks, adding them to the blockchain.
- The process involves solving a cryptographic puzzle or being selected based on stake (depending on the consensus mechanism).
Consensus Mechanism:
- This is the heart of the consensus layer, defining the rules and algorithms for achieving agreement among nodes on which blocks to accept.
- Common mechanisms include:
- Proof of Work (PoW): Nodes compete to solve complex puzzles, consuming computational power.
- Proof of Stake (PoS): Nodes stake their cryptocurrency holdings to participate in block creation and validation.
- Delegated Proof of Stake (DPoS): Token holders vote for delegates to validate blocks on their behalf.
- Other mechanisms like Proof of Authority (PoA) and Byzantine Fault Tolerance (BFT) also exist.
Finality:
- Once consensus is reached on a block, it's considered "final" and practically irreversible, ensuring the immutability of the blockchain.