The upcoming chapter is on cryptocurrency, which is electronic money

created with technology controlling its creation and protecting transactions,

whereas hiding the identity of its users. These are digital cash designed to

be quicker, cheaper, and more reliable.

Key terminologies

Consensus model: To determine which user publishes the next block

in the blockchain, the consensus model is implemented.

Consensus algorithm: The aim is to find a common agreement for

the entire network.

Consensus mechanism: To ensure that all the transactions occurring

on the network are genuine and all participants agree on a consensus

on the status of the ledger in such a dynamically changing status of the

blockchain, the publicly shared ledgers need an efficient, fair, real-

time, functional, reliable, and secure mechanism.

Consensus method: A means of securely choosing a command that is

to be executed on a distributed state machine is the consensus method.

Several consensus methods have been proposed that can be applied to

the problem of updating distributed states in a blockchain.

PoW: A participant node is required to prove that the work done and

submitted by them qualifies them to receive the right to add new

transactions to the blockchain.

PBFT: The ability of a distributed computer network to correctly

reach a sufficient consensus despite malicious nodes in the system

failing or sending out incorrect information is PBFT. The goal is to

protect against catastrophic system failures by reducing the influence

of these malicious nodes.

PoS: Instead of investing in expensive hardware to solve a complex

puzzle, validators invest in the coins of the system by locking up some

of their coins as a stake.

PoB: The validators in PoB “burn” coins by sending them to an

address from where they are irretrievable instead of investing in

expensive hardware equipment.