What Is the Obelisk Consensus Algorithm?
Obelisk is a blockchain consensus algorithm integral to the Skycoin ecosystem, designed to mitigate the limitations of traditional systems like proof-of-work (PoW) and proof-of-stake (PoS). This innovative approach also eliminates the necessity for mining, significantly enhances transaction speed, and boosts security.
Key Takeaways
- Obelisk serves as the proprietary blockchain consensus algorithm of the Skycoin ecosystem.
- It addresses the challenges of traditional consensus mechanisms by distributing influence over a network based on a “web of trust.”
- The Obelisk consensus separates consensus and block creation into distinct nodes.
Understanding the Obelisk Consensus Algorithm
Blockchains are self-regulated, decentralized platforms that operate globally without a single authoritative figure. Hence, a mechanism that can ensure the authenticity of transactions and them to reach a consensus about the ledger’s status is essential. Obelisk answers this call by providing a secure and reliable system.
While PoW and PoS are commonly used, these traditional methods are not without flaws—PoW is incredibly energy-intensive, and PoS can inadvertently lead to cryptocurrency hoarding. Obelisk offers a solution.
Obelisk’s Consensus Process
Obelisk overcomes the limitations of PoW and PoS by distributing influence over the network through a “web-of-trust” concept. Nodes subscribe to each other, creating node density, and the most influential nodes in the network guide consensus decisions.
In Obelisk, two types of nodes exist: block-generating nodes and consensus nodes. Both can interchange roles. Block-generating nodes gather transactions, authenticate them, package them into new blocks, and broadcast these to the network.
Consensus nodes take blocks from block-generating nodes and place them in a separate container. They then identify the block confirmed by the largest number of block-generators as the local winner, which potentially gets added to the blockchain. When most consensus nodes report a local winner, it becomes the global winner and is added to the blockchain.
If inconsistencies are detected, nodes can take actions such as re-synchronizing, dropping out of consensus activities, or initiating an emergency stop.
How Is Obelisk Used?
Obelisk is harnessed by the Skycoin ecosystem, aiming to provide an alternative to centralized internet control. Users can run Skywire—an ISP alternative—from their homes using Skyminer machines, contributing to a decentralized internet network. Skywire users receive Skycoin and Coin Hours for supplying internet bandwidth.
What Is a Consensus Node?
In the Skycoin network, a consensus node collects blocks from block-generating nodes, determines the leading block based on nodal consensus, and appends it to the blockchain.
What Is PoA Consensus?
Proof-of-Authority (PoA) is another blockchain consensus method where new blocks are created only by nodes authenticated to hold that authority.
How Does Blockchain Reach Consensus?
Various algorithms enable distributed ledgers to reach consensus. Typically, validators achieve majority agreement on the blockchain’s state and the involved transactions.
The Bottom Line
The Skycoin blockchain leverages the Obelisk consensus algorithm to validate transactions. By promoting a decentralized approach for internet service provision, Skycoin potentially undermines traditional ISPs’ monopolistic hold over internet access.
The above content is for informational purposes only and should not be construed as personal financial advice. The content creator does not own any Skycoin tokens.
Related Terms: proof-of-work, proof-of-stake, Skycoin, decentralized internet, blockchain.
References
- Skycoin. “Obelisk: Skycoin Consensus Algorithm | Information Pages”.
- Skycoin. “Obelisk: The Skycoin Consensus Algorithm”.
- Skycoin. “Coin Hours”.
