Blockchain Consensus Algorithm and its Different Types

Blockchain Consensus Algorithm and its Different Types

Consensus Algorithm for blockchain and how it is used? Know about, what are the consensus algorithm and its different types. This blog explores the comprehensive guide about POW, POS, and PoET.

Blockchain algorithm, Blockchain Consensus Algorithm, types of Consensus Algorithm, Consensus Algorithm, proof of work Consensus, Consensus Algorithms Infographic

The consensus mean What? Let we explain, the word consensus denotes to unity and it refers to the collective opinion taken from the group of people and implemented by verifying whether it shows benefits or not.

You may all have doubts, How does consensus algorithm is being the major part of Blockchain. Now let we see how does consensus algorithm get more useful in blockchain technology. Already we have discussed more about blockchain technology, so we can directly enter into the topic

Topics we gonna cover in this blog is;

What is consensus network?

Why we need consensus Algorithm for Blockchain

Types of Consensus Algorithm

Let's get into the blog,

What is consensus network?

Consensus network is the decision-making process, in simple words, it is the discussion committee with a group of people. This discussion takes place for the project benefits. The entire group people can share their thoughts and the network picks up the best decision which should favor for all of them.

This network rules based on, if the decision does’nt gave benefits but comes from majority votes means the choice won't implement. If a single one shares the best thoughts, it will surely be placed and implement into the network.

This theory has built to create a successful network system. That’s why blockchain consensus algorithm methods had implemented to run a fairness online world. This system used for an agreement process of consensus theorem.  

Needs consensus Algorithm for Blockchain

The main reason to implemented consensus algorithm for blockchain is; it Is the distributed system even if a single mistake occurs on one node means totally gets collapsed and the whole nodes can get hacked by hackers.

The reason for Consensus algorithm is, there is the Problem with Byzantine Fault Tolerance

Explanation of Byzantine Fault Tolerance: It is the event of failure, this system will be shown as an example of a problem. Many times it happens in a distributed computer system. Here, The storage system gets hacked and get collapsed when a single node gets attacked and obviously all nodes get into trouble. That’s why Experts called ‘Byzantine General’ as a “Problem”

Types of Consensus Algorithm



Delegated Proof-of-Stake

Leased Proof-Of-Stake

Proof of Elapsed Time

Practical Byzantine Fault Tolerance

Simplified Byzantine Fault Tolerance

Delegated Byzantine Fault Tolerance

Directed Acyclic Graphs






Here, we have listed nearly there are 14 algorithms to standardize our blockchain work. Among that, we have explained about Top 3 algorithms pros and cons for your view.


POW - Proof of work is the most important algorithm on blockchain work, that's why it has placed in the top list. Also, this is the first algorithm used in blockchain technology. This consensus confirms that all transaction and produce relevant blocks for the network chain.

In this decentralized system, one needs to take authority for transacting the blocks. Also, it secures our blocks from hackers. If anyone used to create a new block they need to solve mathematical problems. It requires a lot of computational power.

When hackers try to hack the blocks they need to solve a lot of calculations. It feels like the server has a DDoS attack and to find it out the consensus systems. That’s why this process increasing the overall sensitivity system.

Too Sensitive - By securing this server with DDoS attack, this algorithm gets too sensitive. Also, it gets a lack on most important feature “transparency”

Mostly POW used in bitcoin cryptocurrency, because it allows any kind of complex puzzles which based on the overall power of the network. And the time consumption happened while on creating a new block.

The reason why POW is Being the Top Algorithm on Blockchain Network:

In this Blockchain consensus models, the hacking process would take a lot of time and complexity which will make the cost too high. Moreover, hackers decision not only depends on money basis also they look into manpower. It depends on how much computational power you have to form new blocks thus, it could be a major reason.


Here POS deals with the major drawback of POW, in this algorithm proof of stake overcomes the difficulties of proof of work. Here every block gets validated before adding into the blockchain ledger. Also, it has listed up the major twist of validating process access.   

Here every miners should have a maximum number of coins then only they have a chance to validate new blocks. This scenario denotes if you consume more coin you have better chances to control more system.

The work pattern of POS is very simple, if you own 10% of all coins then you have access to mine 10% of new blocks. Also, miner will receive rewards for every new block mining as well as get a share of transaction fees.

Benefits of Proof of stake is very simple methodology gets handled in this system. This type of consensus algorithm doesn't consist of any heavy backup or storage system. It consists of full manpower and functional computer system.

In this algorithm, if a person invests in the network, they won't depreciate like other investment. It affects only the profit and price fluctuation. This system has the only drawback as a decentralized process, not even a solution can be fully decentralized. The major thing in this POS algorithm is if you own huge coins you can get the power to control the many systems.

Proof of Elapsed Time

This is the best algorithm in consensus theorem, this POET is known as permission blockchain network. Here we need to get permission to access the network, the permission network needs to decide on mining network or voting principles.

PoET depends on special CPU requirements is called Intel software guard extension so this system used to run a fair game and make sure the winning is purely fair. Every individual on the network has to wait for an amount of time; however, the time limit is totally random.

The winner should choose a random number in a short period of time, short time get first to win. Also, Individuals get a signed timer from the trusted code source.

In the baseline, consensus algorithm has found to signified the blockchain technology into perfect manners. There will be also an upcoming algorithm can find to maintain the system more than proper than our expects. This algorithm is to make the nature of blockchain into versatile, this technology refinement is for a constant style of betterment process.

Here we have explained about the top preferred algorithms and its pros & cons. In upcoming blog will share about remaining algorithms for your references

Blockchain with Consensus Algorithm - Pulsehyip

Pulsehyip is the leading blockchain development company in India, we are here to provide the best blockchain service also by following this consensus theorem. Our techies are readily available to create End to End service solution with a different combination of tech stack and enable for custom solutions. We are here to propel ahead with or learning and transform into with our tech giants. 

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About Sindhu

Bonjour! This is Sindhu. I am an avid and adept professional, anxious in learning about the recent trends in cryptocurrency and blockchain world. Currently, working as a tech advisor and blogger in Pulsehyip. With 5+ years of experience, I am engrossed in probing many more updates invading the digital crypto industry. Stick around to acquire all the latest blog updates in blockchain industry verticals.

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