consensus (2)

In the field of technology Blockchain or DLT (Distributed Ledger Technology) is one of the major transformations that we have seen recently. Being one of the most universal and multifaceted technology. it has managed to garner the attention of many businesses around the world. In this blog, we will study the latest developments in blockchain in the financial sector. We are talking about Quorum. The most recent development which JP Morgan is bringing to the financial industry. one of the leading investment banks in the world. The inclination of big banks towards blockchain technology is unhidden. J.P. Morgan Chase has taken the initiative in this direction.JP Morgan come up with Quorum along with Ethereum Enterprise Alliance. It is a private blockchain and it is working as the bank’s new brain.

What is Quorum blockchain​?
Quorum blockchain is enterprised focused version of ethereum. Quorum is ideal for a private transaction. for any application requiring high speed and high throughput processing. In simple words, it is ethereum based distributed ledger system. In the blockchain, it is private permission implementation of ethereum. which bolsters transaction and contract security.
The primary features of Quorum are:

  • Transaction and contract privacy
  • Multiple voting-based consensus mechanisms
  • Network/Peer permissions management
  • Higher performance

Transaction and contract privacy
One of the characteristics that banks look at is the confidentiality of data. Well, the current technology of Blockchain or Ethereum that we use fail to give a full guarantee of security of data. Since the key aspect of Blockchain is visibility and ease of accessibility is onethe banking and financial institutions restrain from using this technology. When it comes to Quorum, then it makes favourable concept. because its permissioned nature It brings the concept of public and private transactions. The public transactions are related to Ethereum but when it comes to the private transaction. then it is confidential, and the data is not exposed to the public. One of the key features which make the Quorum better to Ethereum or other blockchain platforms is Constellation. It secures the messages by enslaving it. In this enclave, there are previous transactions authenticity and authentication.thus making it a secure and safe mechanism having the cryptographically-heavy work relay within it.

Multiple voting-based consensus mechanisms
Unlike another blockchain mechanism. Quorum blockchain is based on voting consensus mechanism which is also known as QuorumChain. The operation of this consensus mechanism is very simple; it delegates voting rights to others. QuorumChain makes use of the smart contract. To assign voting rights. It not only assigns the voting rights but at the same time, it also tracks the status of all the voting nodes. Quorum transactions include:

  1. Global Transaction Hash
  2. Public State root hash
  3. Block maker’s signature

Network/Peer permissions management
When it comes to one of the astounding features of Quorum then you must know that it is a permission system which means that the Quorum network can’t be open to all. Only the approved and authorized people can be a part of this network. In the system, Quorum has a permission chain of people. the exchange takes place between participants who are pre-approved by a designated authority.

Higher performance
When it comes to speed of transaction in Quorum then it is more uppish than its contemporaries. As per the development team, the system can easily enough more than 100 transactions per second. which are higher than Bitcoin and Ethereum. Thus, for the banking and other financial institutions. Quorum is the preferable choice. The reason for such high speed is its simple consensus mechanism which allows faster transactions.

If we consider all the features of Quorum, then it’s an excellent tool for the banking companies. Yet it works with the restrictive mechanism, this diminishes the trust issues which the banking and financial institutions have when it comes to implementing blockchain. Quorum blockchain is promising blockchain technology. The fact that it is more ideal for real-world implementation. It is permission and hence can be used by the private organization. Another feature of Quorum blockchain is its performance, ability to customize through a smart contract, and overall transparency.

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There’s no doubt that blockchain technology is a creation that could be bound to change the world in manners we can’t even imagine. The most important thing for a blockchain is to function itself appropriately, that’s where the consensus mechanism comes into the picture. It verifies the blockchain and guarantees it works proficiently. There are several consensus mechanisms being developed and one of these is called Proof-of-Burn (PoB). In this, users need to “burn” or make for all time inaccessible some mined PoW cryptocurrency. At the point when the PoW coins are burned, the user gets coins or tokens or other mining benefits on the system.

  • Working of Proof-of-Burn
    The way proof of burn works is that miners send coins to a location. This address is an unspendable address. When coins get burned, they can’t be used and spent again. Since transactions are recorded on the blockchain, there’s fundamental verification that the coins can never again be utilized, and the user can be remunerated accordingly. The thought behind proof of burn is that by consuming a cryptocurrency, a user is showing an ability to experience a momentary misfortune but not anymore for long term investment. Users get compensated after some time through the confirmation of mining, gaining a lifetime benefit to mine on the framework. The more coins a user burns, the chance of his getting selected for mining next time increases accordingly.

  • Proof of burn can be executed in various ways. For instance, the coin burned might be that of the local cryptocurrency or that of an alternative cryptocurrency. With the proof of burn, your stake decays after some time. Much like with Bitcoin and the need to put resources into progressively ground-breaking mining as time passes by, you’ll need to burn more coins after some time so as to keep up your chances of being chosen for mining the following block.

  • The Eater Address
    The eater address is basically a location that is utilized to store coins that can’t ever be reused. While most public addresses are produced from a private key, and the private key holder at that point approaches any coins sent to that address, an eater address is an arbitrarily created location that isn’t related with a private key. Since there’s no private key affiliation, and there’s no real way to create a private key by using the public address, there is no way to ever get to the coins sent to the eater address.

  • Features of Proof of Burn are as follows:
    Less energy required
    No hardware mining.
    Coin burns is a virtual process
    Burning coins reduce the circulating supply
    Encourages long-term commitment.

  • Conclusion
    Some well-known examples of implementations of proof of burn incorporate Counterparty and Slimcoin. On account of Slimcoin, proof of burn is utilized as its consensus mechanism and mining strategy. Interestingly, Counterparty utilizes proof of burn for seeding its tokens. Those taking an interest sent bitcoins to an unspendable Bitcoin address and got the Counterparty tokens in return. Be that as it may, it is more than likely that we will keep on observing the advancement of variousconsensus mechanisms. What’s your opinion about Proof of Burn? Tell us in the comments below!

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