Understand consensus algorithms and popular alternatives

The HELO™ blockchain is powered by the Proof of Ethic™ consensus algorithm. Proof of Ethic™ has a carbon footprint and virtually zero transaction fees. The algorithm is based on the principle of equality, so all nodes have an equal chance to forge the next block without the need for capital investment. The result is an accessible and egalitarian consensus.

What is a consensus algorithm?

A central administrator has the authority to manage and update any centralized system, such as a database. All updates are managed by a central authority responsible for maintaining accurate data. Decentralized and self-regulated public blockchains operate on a global scale without depending on a single authority. They include contributions from people who work on blockchain verification and validation of transactions, as well as block mining.

Given the ever-changing state of the blockchain, these publicly shared ledgers need an efficient, reliable and secure method to verify that all transactions on the network are authentic and that all participants agree on the registry status. The consensus algorithm, or mechanism, is a system of rules that determines the legality of contributions made by the various participants (i.e. nodes or transactors) of the blockchain, fulfills this crucial role.

Types of consensus algorithms

There are a variety of consensus algorithms, each of which operates on a distinct set of principles. The two best-known consensus algorithms today are Proof of Work and Proof of Stake.

Proof of Work (PoW) is a widely used consensus algorithm in cryptocurrency networks such as Bitcoin and Ethereum. A participating node must prove that the work it has performed and provided qualifies it to add new transactions to the blockchain. However, the whole bitcoin mining mechanism consumes an abundance of energy and takes a long time to process.

Proof-of-stake (PoS) is a popular consensus technique that originated as a low-cost, low-power alternative to the proof-of-work (PoW) process. This involves assigning a participating node the responsibility of maintaining the public ledger in proportion to the amount of virtual currency tokens it holds. However, this consensus algorithm has several drawbacks. For starters, it has the downside of encouraging holding coins rather than transacting with them.

Proof of Ethics™ (PoE)

Bitcoin and Ethereum, among other top protocols, often experience network congestion, network fee spikes, or shutdowns. Proof of Ethic™, being essentially a game of speed, incentivizes nodes to generate blocks as quickly as possible, while incorporating dynamic block sizing to avoid bottleneck congestion.

Dynamic block sizes, proprietary and enabled by Proof of Ethic™, allow transactions to be processed as efficiently as possible, rather than waiting for a predetermined time or block size. A block is generated in correlation with network activity for transparent throughput. Existing models show that Proof of Ethic™ achieves several million transactions per second.

HELO™ Blockchain’s Proof of Ethic™ algorithm overcomes the environmental shortcomings of other blockchain consensus algorithms without any major compromises. The blockchain industry historically required massive amounts of energy and computing power, which has prevented widespread adoption as consumers seek greener alternatives.

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Sarah Robertson // [email protected]
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Phone: (844) 833-3988

Sharon D. Cole