Ethereum’s Vitalik Buterin “a consensus algorithm is to keep a blockchain safe”
|- “The purpose of a consensus algorithm is not to make a blockchain fast,” Buterin.
- “The purpose of a consensus algorithm is to keep a blockchain safe,” Ethereum co-founder clarifies.
Ethereum co-founder Vitalik Buterin spoke about the purpose of a consensus algorithm within a blockchain network like Ethereum during the recently concluded blockchain conference held in San Francisco. The renowned developer was responding to a question whether the impending upgrade on Ethereum will include “ any transaction throughput goals.” While shedding light on other blockchain projects in the industry, Buterin said:
“So I’ve noticed a lot of misconceptions here. Because, like, there’s a lot of like, honestly, bad crypto projects that try to claim. ‘Oh, because we use fancy BFT, we can do 5,000 transactions per second and proof-of-work can only do 15.”
He added that a consensus is vital especially when it comes to processing transactions on a blockchain.
“There’s a lot of horrible misconceptions inside that. Because the purpose of a consensus algorithm is not to make a blockchain fast. The purpose of a consensus algorithm is to keep a blockchain safe. With the way proof-of-work works, it becomes unsafe if computers spend more than maybe 10% of the time actually mining and verifying blocks. Bitcoin-NG or things like the various forms of proof-of-stake, it could potentially be safe if you go higher than 10%. But the difference is still very small.”
The co-founder took a stand against some of the vocal cryptocurrency projects that claim that they are better than Ethereum and can achieve more transactions per second (TPS) because of having a different algorithm. He said:
"When a blockchain project claims 'We can do 3,500 TPS because we have a different algorithm,’ what we really mean is ‘We are a centralized pile of trash because we only have 7 nodes running the entire thing.’”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.