A study of blockchain consensus protocols

Abstract When Nakamoto invented Bitcoin, the first generation of cryptocurrencies followed it in applying POW (Proof of Work) consensus mechanism; due to its excessive energy consumption and heavy carbon footprints, new innovations evolved like Proof of Space , POS (Proof of Stake) , and a lot more with many variants for each. Furthermore, the emergence of more blockchain applications and kinds beyond just cryptocurrencies needed more consensus mechanisms that is optimized to fit requirements of each application or blockchain kind; examples range from IoT (Internet of Things) blockchains for sustainability applications that often use variants of BFT (Byzantine Fault Tolerance) algorithm, and consensus needed to relay transactions and/or assets between different blockchains in interoperability solutions. Previous studies concentrated on surveying and/or proposing different blockchain consensus rules, on a specific consensus issue like attacks, randomization, or on deriving theoretical results. Starting from discussing most important theoretical results, this paper tries to gather and organize all significant existing material about consensus in the blockchain world explaining design challenges, tradeoffs and research areas. We realize that the topic could fit for a complete textbook, so we summarize the basic concepts and support with tables and appendices. Then we highlight some case examples from interoperability solutions to show how flexible and wide the design space is to fit both general and special purpose systems. The aim is to provide researchers with a comprehensive overview of the topic, along with the links to go deeper into every detail.