What is Consensus Chain (What Does Consensus Do)

08/15/2023 07:59 • Tech Trends • 80 views

What is Consensus Chain? Consensus chain is a decentralized ledger system, which is a set of protocols based on rules. Through this mechanism, an efficient, secure, and interoperable network can be established. Anyone can participate and create their own smart contracts without the need for any central authority to control these codes or rules.

According to a recent research report published by the Bank for International Settlements (BIS), “over 80% of public sectors worldwide have been researching and developing solutions based on blockchain technology in the past two years or so.” However, despite this, there is still a lot of evidence showing that the technological development in this field remains stagnant. (Cointelegraph)

What does Consensus do?

What does Consensus do? It can be used to manage and coordinate human collaboration, such as in law. For example, if you want to transfer your contract from one company to another (that is, you can go to an institution to execute an agreement), and this contract is not issued by a single entity but composed of multiple nodes in an alliance to process these transactions and reach a consensus result.

So for any party, it is a very complex thing – we all know that contracts are jointly signed by multiple parties and both sides have the right to sign, and there is also a trust between them: if the other parties agree to fulfill the obligations, then disputes will occur. (This article is translated and summarized from “Blockchain Whitepaper”).

Usually, when a person wants to meet certain conditions, the appropriate time can be arranged for him when he needs it, which may result in a breach of commitment. However, if this is not done, this situation is likely to no longer be effective: once certain requirements are not met, a breach of contract will occur. Therefore, consensus is a solution that can be invoked and changed without changing the terms, making it more secure and reliable, and not vulnerable to hacking attacks or human errors.

The main content of consensus includes determining which stakeholders have the right to participate in the agreement and which behaviors have an impact, etc. Consensus ensures that everyone can participate in accordance with standards by defining “specific” rules. Consensus also specifies: “In general, we believe that the difference from traditional systems lies in compliance with all applicable regulatory requirements. For example, anti-money laundering/KYC, we recommend using third-party auditing services. Unless there are actions that violate national policies, we will take necessary measures to prevent illegal activities.” In addition, according to a recent research report released by the Bank for International Settlements, “a global cross-border payment network based on smart contracts” will provide custody services for over 1 billion digital assets and is expected to be launched in the first half of 2019.

This article and pictures are from the Internet and do not represent aiwaka's position. If you infringe, please contact us to delete:https://www.aiwaka.com/2023/08/15/what-is-consensus-chain-what-does-consensus-do/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

What is Consensus Chain (What Does Consensus Do)

What does Consensus do?

Recommended articles

Summary of important developments at noon on February 22