Consensus Mechanisms Outlook in 2022
Written by EmergentX Insights team
February 24, 2022 | 1 Min
Highlights
- The most prevalent consensus mechanisms are Proof-of-work (PoW), Proof-of-stake
(PoS) and Delegated proof-of-stake. - Fourth-generation blockchain solutions could resolve prior challenges and emphasize
easy to use business-oriented interfaces. - Recent advancements of Ethereum’s mechanism from Proof-of-work (PoW) to Proof-
of-stake (PoS) overcome the extreme energy consumption of prior design, paving the
way to higher adoption.
Core thesis
Consensus mechanisms are critical components to a blockchain network and function to
build consensus while ensuring security. Existing consensus mechanisms have evolved, and
others have grown in popularity to meet the needs of blockchain technology.
Significance and Disruptive Impacts
New consensus mechanisms are being developed to incentivize investors and make their
transactions more secure, fast and cost-efficient.
Expectation for 2022
- Competition between smart contract platforms
Blockchain projects compete and complement Ethereum 2.0 to become the most
robust smart contract platform. - Fourth-generation blockchain solutions
New or improvements in consensus mechanisms will address speed and scalability
challenges, increasing the maturity of blockchain’s distributed capabilities. - New blockchain use cases
A perfect blockchain consensus mechanism does not exist yet. The growing number
of new blockchain use cases will help drive the evolution, improvements, and
developments of blockchains.
EmergentX Digital Asset 2022 Outlook
Year of Consilience
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