The term decentralised as a description of the architecture, operation, and governance of permissionless blockchain systems has become ubiquitous. However, in these contexts, the term decentralised has no clear definition. Blockchain ecosystems are complex, and thus it is essential to address confusion among stakeholders about their nature and promote understanding of the intentions and consequences of their implementation. This article offers a theoretical definition of the term decentralised in the context of permissionless blockchain systems. It is proposed that five inextricable and interconnected aspects are required, at a minimum, to warrant a claim that a permissionless blockchain system is decentralised. These aspects are disintermediation, a peer-to-peer network, a distributed blockchain data structure, algorithmic trust, and open-source principles. The relationship between the five aspects is discussed, and it is argued that decentralisation is not binary but exists on a spectrum. Any variation in one or more aspects may impact the system’s decentralised nature as a whole. The researchers identify areas where further investigation in this field is required and propose instances where the knowledge garnered may be used.
Bitcoin is probably the most well-known blockchain system in existence. It employs the proof-of-work (PoW) consensus algorithm to add transactions to the blockchain. This process is better known as Bitcoin mining. PoW requires miners to compete in solving a cryptographic puzzle before being allowed to add a block of transactions to the blockchain. This mining process is energy-intensive and results in high energy wastage. The underlying cause of this energy inefficiency is the result of the current implementation of the PoW algorithm. PoW assigns the same cryptographic puzzle to all miners, creating a linear probability of success between the miner’s computational power as a proportion of the total computational power of the network. To address this energy inefficiency of the PoW mining process, the researchers investigated whether a nonlinear probability of success, between the miner’s computation power and its probability of success, will result in better energy usage. A nonlinear proof-of-work (nlPoW) algorithm was constructed by using a design science approach to derive the requirements for and structure of the algorithm. The Bitcoin mining process was tested through statistical simulation, comparing the performance of nlPoW with PoW. Preliminary results, simulating a network of 1000 miners with identical computational power, indicate that nlPoW reduce the number of hash computations, and therefore the energy consumption, required by Bitcoin mining. The findings are significant because nlPoW does not reduce the degree of decentralised consensus, or trade energy usage for some other resource as is the case with many other attempts to address the energy consumption problem in PoW.
Consensus algorithms that function in permissionless blockchain systems must randomly select new block proposers in a decentralised environment. Our contribution is a new blockchain consensus algorithm called Proof-of-Publicly Verifiable Randomness (PoPVR). It may be used in blockchain design to make permissionless blockchain systems function as pseudo-random number generators and to use the results for decentralised consensus. The method employs verifiable random functions to embed pseudo-random number seeds in the blockchain that are confidential, tamper-resistant, unpredictable, collision-resistant, and publicly verifiable. PoPVR does not require large-scale computation, as is the case with Proof-of-Work and is not vulnerable to the exclusion of less wealthy stakeholders from the consensus process inherent in stakebased alternatives. It aims to promote fairness of participation in the consensus process by all participants and functions transparently using only open-source algorithms. PoPVR may also be useful in blockchain systems where asset values cannot be directly compared, for example, logistical systems, intellectual property records and the direct trading of commodities and services. PoPVR scales well with complexity linear in the number of transactions per block.INDEX TERMS Consensus algorithm, decentralised consensus, permissionless blockchain systems, proofbased consensus algorithms, proof-of-publicly verifiable randomness, pseudo-random number generation, random number seeds, verifiable random functions, vote-based consensus algorithms. JACQUES M. MARITZ received the master's degree and the Ph.D. degree in astrophysics from the University of the Free State, South Africa, in 2017.He has been a Lecturer in engineering sciences with the University of the Free State, since 2017. His research interests include physics, astrophysics, energy modeling, energy analytics, energy AI, and power systems.
Many blockchain processes require pseudo-random numbers. This is especially true of blockchain consensus mechanisms that aim to fairly distribute the opportunity to propose new blocks between the participants in the system. The starting point for these processes is a source of randomness that participants cannot manipulate. This paper proposes two methods for embedding random number seeds in a blockchain data structure to serve as inputs to pseudo-random number generators. Because the output of a pseudo-random number generator depends deterministically on its seed, the properties of the seed are critical to the quality of the eventual pseudo-random number produced. Our protocol, B-Rand, embeds random number seeds that are confidential, tamper-resistant, unpredictable, collision-resistant, and publicly verifiable as part of every transaction. These seeds may then be used by transaction owners to participate in processes in the blockchain system that require pseudo-random numbers. Both the Single Secret and Double Secret B-Rand protocols are highly scalable with low space and computational cost, and the worst case is linear in the number of transactions per block.INDEX TERMS B-Rand, blockchain, consensus algorithm, homomorphic encryption, pseudo-random number generation, random number seeds.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.