Proof-of-Stake Consensus Mechanisms for Future Blockchain Networks: Fundamentals, Applications and Opportunities

Abstract

The rapid development of blockchain technology and their numerous emerging applications has received huge attention in recent years. The distributed consensus mechanism is the backbone of a blockchain network. It plays a key role in ensuring the network's security, integrity, and performance. Most current blockchain networks have been deploying the proof-of-work consensus mechanisms, in which the consensus is reached through intensive mining processes. However, this mechanism has several limitations, e.g., energy inefficiency, delay, and vulnerable to security threats. To overcome these problems, a new consensus mechanism has been developed recently, namely proof of stake, which enables to achieve the consensus via proving the stake ownership. This mechanism is expected to become a cutting-edge technology for future blockchain networks. This paper is dedicated to investigating proof-of-stake mechanisms, from fundamental knowledge to advanced proof-of-stake-based protocols along with performance analysis, e.g., energy consumption, delay, and security, as well as their promising applications, particularly in the field of Internet of Vehicles. The formation of stake pools and their effects on the network stake distribution are also analyzed and simulated. The results show that the ratio between the block reward and the total network stake has a significant impact on the decentralization of the network. Technical challenges and potential solutions are also discussed. INDEX TERMS Blockchain, consensus mechanisms, energy, game theory, proof-of-stake, proof-of-work, security, and mining process.

A Proof-of-Quality-Factor (PoQF)-Based Blockchain and Edge Computing for Vehicular Message Dissemination

“…PBFT [12], [29], [30], [35], [41], [42] Achieving high throughput PBFT [11], [31], PoS [36] • We propose an incentive distribution mechanism to reward honest nodes and punish malicious mining nodes and analyze its performance using game theory.…”

“…PBFT is recommended as a suitable consensus for message validation among connected vehicles in [12], [33] and [35]. Meanwhile, PoS is also compared with PoW and suggested as a promising consensus for IoV because of its low energy consumption and reduced time delay in [36]. A blockchain based message dissemination in VANETs utilizing edge computing is proposed in [37].…”

Energy Transaction for Multi-Microgrids and Internal Microgrid Based on Blockchain

“…And the credibility and authority of these third parties will become higher, which will gradually change the status of third-party central institutions. And they can deduce the transaction rules implied in massive transaction data, which can create new value for third-party central institutions [30]. Therefore, a decentralized transaction mechanism is necessary to applied to solve the fairness problem caused by the intervention of third parties.…”

Blockchain for Dynamic Spectrum Management

“…In particular, with more tokens and longer time of holding the tokens, the difficulty of mining for a node reduces. Further, the problem-solving process is eliminated in the latter PoS algorithms, and the block creator is elected based on the stakes the nodes hold [10]. With PoS, the computational resources one node occupies no longer determine the probability that it successfully finds a new block, and thus the computational resources required to reach a consensus can be largely reduced.…”