Neo Launches dBFT 2.0, New Consensus Mechanism For Its Mainnet

by | Jun 5, 2019 | Blockchain, Cryptocurrency, Cryptocurrency News

Neo | Blockchain | Mainnet | New Consensus Mechanism

Chinese-based blockchain platform Neo implements a new version of its consensus algorithm on its mainnet. Dubbed as Byzantine Fault Tolerance mechanism (dBFT 2.0), the new algorithm will purportedly provide immediate transaction finality, as per a press release on June 4.

Amongst its enhanced features, dBFT 2.0 includes a new procedure that can reintegrate failed nodes back into the network, along with adding a “commit phase” of consensus that can alleviate forking issues by including a step that forces node assignment to new blocks.

The commit phase is what makes the consensus mechanism dBFT different from the blockchain of top two cryptocurrencies Bitcoin and Ethereum. The consensus mechanism for Bitcoin is a proof-of-work (PoW) protocol that enables the BTC miners to compete over making the next block, i.e. they are competing forks on the blockchain.

As for Ethereum, the PoW mechanism is employed for creating and validating the new block, which could result in forks and potential transaction reversals as purported by Neo. Erik Zhang, the founder of Neo and the creator of the first dBFT protocol elaborated on how the  new transaction finality standards will be beneficiary for users:

“With this improvement, dBFT will have more strict finality. Users only need to wait for one confirmation (15 seconds) to ensure the irreversibility of the transactions and prevent double-spending. This is very suitable for financial applications.”

Reportedly, the DBFT 2.0 is a key step for creating the next iteration of the Neo blockchain, Neo 3.0. Zhang further commented on his plans to integrate giant entertainment applications on Neo 3.0, saying:

“When we talk about Neo 3.0 being ready for large-scale commercial use, we mean it provides the possibility to run large-scale applications with blockchain technology. In the future, we’d like to see applications such as YouTube, Alipay, and gaming giants like Tencent and Blizzard run on blockchain, and Neo 3.0 will allow these big organizations to do that.”

Read more: SEC Sues Kik For Allegedly Conducting An Unregistered $100 Million ICO In 2017

Image source – NEO Twitter

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