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Consensus Models
A quick introduction to
oded.noam@kik.comOded Noam, Blockchain Architect kin.kik.com
History: Distributed Systems
• Attempt to solve scale, geo-redundancy and/or custody of systems
• Handle two types of faults:
• Crashes (incoherent state)
• Byzantine faults (1982)
● CAP theorem (consistency/availability/partition-tolerance: can’t have
more than 2)
● FLP Impossibility (no consensus in finite time with faulty processes)
• Abstract use-case: Replicated State Machine
(Byzantine Faults)
• Generals need to decide attack/retreat
• Half-hearted attack will result in failure
• Communication via couriers (peer-to-peer)
• Traitor may create false consensus
“Fast” vs “Slow” Consensus
● “Fast” (weakly synchronous / final): system-wide consensus in bound
timing
● Handle faults: crashes (incoherent state) and byzantine faults
● Known set of verifiers
● “Slow” (eventual / asynchronous / non-final): distribute the mandate to
sign blocks, and determine consensus in retrospect (e.g. Longest-
chain or GHOST protocols)
● Can be permissionless/open
Slow Consensus: Proof-of-Work (1)
• Proposed by Naor and Dwork (1993) for eliminating e-mail spam
• Whoever solves a puzzle can publish a block
• Solving costs money in computer time, electricity and cooling
• Nontrivial balance between worth of network and cost of its protection
• Target difficulty is 000000000FFFFFFFFFFFFF
Construct block:
Put “0” in nonce, hash the block
→ 6ebd2efb6476025951da175a82ce0fbc
Put “1” in the nonce, hash the block
→ 8d678c54ff53cac1efd6d62697aeb5a0
…
Put “59324502” in the nonce, hash the block
→ 0000000009efb30f7e7ca5bda314561e winner!
Slow Consensus: Proof-of-Work (2)
• Bitcoin, Ethereum: hash(block+nonce) < difficulty
• Other variants: Memory-hard PoW (ZCash); Quantum resistant PoW;
Proof-of-useful-work (Primecoin)
• Trade-off between block time and forking
• High carbon footprint
Slow Consensus: Proof-of-Work (3)
• Replace PoW with block signing by weighted-random stakeholder
• Some require participating verifiers to put security deposit (“bonding”)
● Nothing-at-stake problem: leader can sign competing blocks
● Circular logic problem: stakeholders vote on stakeholding
Examples: Casper (Ethereum), Ouroboros (Cardano)
Slow Consensus: Proof-of-Stake
Fast Consensus Protocols
• Widely used in distributed systems (databases, KVS, filesystems)
• Variety of consensus algorithms, for example
• PAXOS variants (multi-paxos, byzantine-paxos & more)
• PBFT
● BA*
• Known set of verifiers, preferably small → BIG CHALLENGE
Fast Consensus: Private
• Known set of verifiers: owned by one entity
• Controlled execution environment; enforceable adherence to protocol
• Centralized; decentralization (?) by consortium
Examples: Hyperledger
Fast Consensus: Federation
• Eliminate central governance of consortium
• Each node has a set of trusted verifiers
• Modified consensus algorithm to allow partially-overlapping trusted
sets; each node may see different projection of the ledger
Examples: Ripple, Stellar
Fast Consensus: Delegated PoS
• Stakeholders periodically elect verifiers to represent them
• Specific criticism: delegate corruption, voter indifference
(parliamentary democracy)
• Other POS problems (nothing-at-stake problem, circular logic)
Examples: BitShares, Steem.it, EOS, Waves
Fast Consensus: AlgoRand
• Cryptographic sortition: incorruptible selection of random verifier set
each round
• Like jury duty, every user may be selected to be verifier
• Not ready for production yet; some practical challenges still unsolved
Thank You!
oded.noam@kik.comOded Noam, Blockchain Architect kin.kik.com

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A quick introduction to Consensus Models

  • 1. Consensus Models A quick introduction to oded.noam@kik.comOded Noam, Blockchain Architect kin.kik.com
  • 2. History: Distributed Systems • Attempt to solve scale, geo-redundancy and/or custody of systems • Handle two types of faults: • Crashes (incoherent state) • Byzantine faults (1982) ● CAP theorem (consistency/availability/partition-tolerance: can’t have more than 2) ● FLP Impossibility (no consensus in finite time with faulty processes) • Abstract use-case: Replicated State Machine
  • 3. (Byzantine Faults) • Generals need to decide attack/retreat • Half-hearted attack will result in failure • Communication via couriers (peer-to-peer) • Traitor may create false consensus
  • 4. “Fast” vs “Slow” Consensus ● “Fast” (weakly synchronous / final): system-wide consensus in bound timing ● Handle faults: crashes (incoherent state) and byzantine faults ● Known set of verifiers ● “Slow” (eventual / asynchronous / non-final): distribute the mandate to sign blocks, and determine consensus in retrospect (e.g. Longest- chain or GHOST protocols) ● Can be permissionless/open
  • 5. Slow Consensus: Proof-of-Work (1) • Proposed by Naor and Dwork (1993) for eliminating e-mail spam • Whoever solves a puzzle can publish a block • Solving costs money in computer time, electricity and cooling • Nontrivial balance between worth of network and cost of its protection
  • 6. • Target difficulty is 000000000FFFFFFFFFFFFF Construct block: Put “0” in nonce, hash the block → 6ebd2efb6476025951da175a82ce0fbc Put “1” in the nonce, hash the block → 8d678c54ff53cac1efd6d62697aeb5a0 … Put “59324502” in the nonce, hash the block → 0000000009efb30f7e7ca5bda314561e winner! Slow Consensus: Proof-of-Work (2)
  • 7. • Bitcoin, Ethereum: hash(block+nonce) < difficulty • Other variants: Memory-hard PoW (ZCash); Quantum resistant PoW; Proof-of-useful-work (Primecoin) • Trade-off between block time and forking • High carbon footprint Slow Consensus: Proof-of-Work (3)
  • 8. • Replace PoW with block signing by weighted-random stakeholder • Some require participating verifiers to put security deposit (“bonding”) ● Nothing-at-stake problem: leader can sign competing blocks ● Circular logic problem: stakeholders vote on stakeholding Examples: Casper (Ethereum), Ouroboros (Cardano) Slow Consensus: Proof-of-Stake
  • 9. Fast Consensus Protocols • Widely used in distributed systems (databases, KVS, filesystems) • Variety of consensus algorithms, for example • PAXOS variants (multi-paxos, byzantine-paxos & more) • PBFT ● BA* • Known set of verifiers, preferably small → BIG CHALLENGE
  • 10. Fast Consensus: Private • Known set of verifiers: owned by one entity • Controlled execution environment; enforceable adherence to protocol • Centralized; decentralization (?) by consortium Examples: Hyperledger
  • 11. Fast Consensus: Federation • Eliminate central governance of consortium • Each node has a set of trusted verifiers • Modified consensus algorithm to allow partially-overlapping trusted sets; each node may see different projection of the ledger Examples: Ripple, Stellar
  • 12. Fast Consensus: Delegated PoS • Stakeholders periodically elect verifiers to represent them • Specific criticism: delegate corruption, voter indifference (parliamentary democracy) • Other POS problems (nothing-at-stake problem, circular logic) Examples: BitShares, Steem.it, EOS, Waves
  • 13. Fast Consensus: AlgoRand • Cryptographic sortition: incorruptible selection of random verifier set each round • Like jury duty, every user may be selected to be verifier • Not ready for production yet; some practical challenges still unsolved
  • 14. Thank You! oded.noam@kik.comOded Noam, Blockchain Architect kin.kik.com