Title: A comparative analysis of cryptocurrency consensus algorithms
Authors : Wagner, Kevin
Keller, Thomas
Seiler, Roger
et. al : No
Proceedings: Proceedings of the 16th international conference applied computing
Pages : 217
Pages to: 225
Conference details: AC 2019 16th International Conference Applied Computing, Cagliari, Italy, 7-9 November 2019
Editors of the parent work: Weghorn, Hans
Publisher / Ed. Institution : IADIS
Issue Date: 2019
License (according to publishing contract) : Licence according to publishing contract
Type of review: Peer review (publication)
Language : English
Subjects : Consensus algorithm; Cryptocurrency; Sustainability
Subject (DDC) : 004: Computer science
332: Financial economics
Abstract: The aim of this work is to analyze the major existing cryptocurrency consensus algorithms considering a number of attributes that may play a significant role in the long-term sustainability of a cryptocurrency ecosystem and to comparatively evaluate a selection of existing algorithms or cryptocurrencies to deduce the most sustainable examples currently in existence. To reach this goal, the term “sustainability of cryptocurrencies” was first defined through the means of a detailed analysis on various attributes that define cryptocurrencies as well as their reward systems. In order to research existing consensus mechanisms and reward systems as well as their current capabilities, shortcomings and dissemination, a literature review was conducted. This lays the foundation for the subsequent comparative analysis on the introduced consensus algorithms and deduction of a sustainable variant that fulfills the main sustainability criteria identified for this context: scalability, security, power consumption, long-term governance as well as the incentives and costs of participating in the consensus protocol. Over the course of this research, only one existing consensus algorithm category under the name of delegated Proof-of-Stake (dPoS) has shown to best achieve the traits outlined above and the specific example of a cryptocurrency called EOS is identified and elaborated in detail. Having outlined the initial definition of a sustainable cryptocurrency, future research and development in this direction is recommended to review the subtle yet important differences within the category of dPoS cryptocurrencies to determine the most sustainable approach and potentially refine the given definition. The dissemination of the knowledge obtained in this work as well as future research into all existing dPoS implementations could potentially accelerate the evolution of consensus mechanisms and prompt current instantiations of other algorithms to consider following this path in the pursuit of sustainable cryptocurrencies.
Departement: School of Management and Law
Organisational Unit: Institute of Business Information Technology (IWI)
Publication type: Conference paper
ISBN: 978-989-8533-95-1
URI: https://digitalcollection.zhaw.ch/handle/11475/18789
http://www.iadisportal.org/digital-library/a-comparative-analysis-of-cryptocurrency-consensus-algorithms
Appears in Collections:Publikationen School of Management and Law

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