The blockchain industry has experienced a continuous growth rate over the years, with one of the greatest years being 2017. However, there are a few drawbacks that blockchain has been facing in recent years. One of them is that bitcoin’s mining power is mainly centralized in China, which is problematic for the decentralized store of value.
This increases the risk of a chain split similar to the one seen in August 2017. The other problem is the possibility of a security flaw that is yet to be solved in blockchain even after the addition of Plasma sub chains.
What Is Stellar Consensus Protocol?
The Stellar Consensus Protocol seeks to solve the shortcomings of blockchain by providing a way to reach a consensus without the reliance of a closed system to record financial transactions accurately. The protocol is not blockchain and can be defined as an evolution of blockchain, which works to its advantage. Its lack of blockchain in some instances may make the protocol seem complex and not easy to understand.
It optimizes safety over liveliness through its provable safety properties whereby if there are partitions or misbehaving nodes, it will halt the progress of the network until a consensus is reached.
Stellar Consensus Protocol Key Features
The protocol’s key features are what differentiate it from blockchain and make it one of the safest consensus mechanisms. It has a more decentralized control, which means that everyone can participate and the approval for consensus is not dictated by a central authority. It also has a low latency where its web or payment transactions take only a few seconds.
Other features include a flexible trust as users can trust any combination of parties that they see fit and asymptotic security that means security is ensured through digital signatures and hash families.
Out of these features, blockchain’s proof of work can only manage a decentralized control, which is not protected from compromise.
How Stellar Consensus Protocol Non-Blockchain SCP Works
The protocol uses set nodes known as quorums to reach agreements. There is no mining involved on the protocol therefore large numbers of transactions can be processed in short amounts of time and at lower costs. A secure Consensus is attained by the quorum through exchange of signatures. More information on the protocol can be obtained from its whitepaper.
Stellar Consensus Protocol Conclusion
The amount of time and money invested into blockchain is significant. However, in order to eliminate the need of having to solve the scalability problem, future blockchain developers need to adopt or transition to The Stellar Consensus Protocol. The protocol is also one of the ways that the industry can attain a Billion Dollar Market Cap. In the future, the protocol will introduce a decentralized exchange and deploy the first ICO on Mobius platform.