Title:	A COMPARATIVE ANALYSIS OF CRYPTOCURRENCY CONSENSUS ALGORITHMS
Author(s):	Kevin Wagner, Thomas Keller and Rolger Seiler
ISBN:	978-989-8533-95-1
Editors:	Hans Weghorn
Year:	2019
Edition:	Single
Keywords:	Consensus Algorithm, Cryptocurrency, Sustainability
Type:	Full Paper
First Page:	217
Last Page:	225
Language:	English
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Full Contents:	click to dowload
Paper Abstract:	The aim of this work is to analyze the major existing cryptocurrency consensus algorithms considering a number of attributes that may play a significant role in the long-term sustainability of a cryptocurrency ecosystem and to comparatively evaluate a selection of existing algorithms or cryptocurrencies to deduce the most sustainable examples currently in existence. To reach this goal, the term “sustainability of cryptocurrencies” was first defined through the means of a detailed analysis on various attributes that define cryptocurrencies as well as their reward systems. In order to research existing consensus mechanisms and reward systems as well as their current capabilities, shortcomings and dissemination, a literature review was conducted. This lays the foundation for the subsequent comparative analysis on the introduced consensus algorithms and deduction of a sustainable variant that fulfills the main sustainability criteria identified for this context: scalability, security, power consumption, long-term governance as well as the incentives and costs of participating in the consensus protocol. Over the course of this research, only one existing consensus algorithm category under the name of delegated Proof-of-Stake (dPoS) has shown to best achieve the traits outlined above and the specific example of a cryptocurrency called EOS is identified and elaborated in detail. Having outlined the initial definition of a sustainable cryptocurrency, future research and development in this direction is recommended to review the subtle yet important differences within the category of dPoS cryptocurrencies to determine the most sustainable approach and potentially refine the given definition. The dissemination of the knowledge obtained in this work as well as future research into all existing dPoS implementations could potentially accelerate the evolution of consensus mechanisms and prompt current instantiations of other algorithms to consider following this path in the pursuit of sustainable cryptocurrencies.
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