Consensus protocols like Proof-of-Work (PoW) and Proof-of-Stake (PoS) are used to power blockchain technology. The blockchain can also be powered using other ways. dBFT is an algorithm used to power the blockchain. Nodes can use dBFT to reach a consensus. Many blockchain and cryptocurrency adopters can find difficulties to understand this concept.
Binance is considered as the world’s biggest cryptocurrency exchange. Using dBFT for a chain was a decision of Binance. Binance has taken the decision. Although untrustworthy nodes can be countered effectively by other consensus algorithms, untrustworthy nodes can be countered better by dBFT.
NEO is the first original public blockchain project in China. Another name of NEO is the “Ethereum of China”. Achieving a “smart economy” is a plan of NEO. Assets can be digitized and smart contracts can be provided on the blockchain by NEO for achieving the “smart economy”.
A large number of nodes are allowed in the voting system of dBFT. dBFT has features like absolute finality. If transactions are included in a block and the block is added to a blockchain, then the finalization will be received. After receiving the finalization, neither the block can be bifurcated nor the transactions can be canceled. The network of NEO is not completely a decentralized one. This fact guarantees on this finality somehow.
Working of dBFT
- dBFT is just like Delegated Proof-of-Stake (DPoS)
- NEO token holders can use a voting process to vote for delegates
- If a node fulfills certain requirements, then the node will become a delegate. A reliable internet connection, the right equipment, a validated identity, and 1,000 GAS are the requirements
- A random speaker is selected from the elected delegates. A new block is created by the random speaker
- The new block will now be validated. The elected delegates will be proposed for the validation of the new block
- All transactions can be tracked and recorded on the network by the elected delegates. The proposal can be shared and compared by the elected delegates. It isn’t only related to the testing of data accuracy but it is also related to the testing of the honesty of the random speaker
- More than two-thirds of the delegates have to reach a consensus and validate the new block in order to add the block to the existing blockchain
- A reward called GAS is received.