Research in PoS algorithms or alternatives to PoW is also an important area of research.
This is especially relevant due to the fact the current Bitcoin network’s power consumption is expected to reach almost 125 TWh by the end of 2018.
Human-Readable Addresses for the Blockchain World (Part 2)
Currently it is almost equivalent to the country of Israel in terms of electricity consumption.
It has also been suggested that instead of performing an inefficient or single-purpose type of work as is the case with Bitcoin’s PoW, the network power can be used to solve some mathematical or scientific problems.
Also, alternatives such as PoS algorithms have already gained much traction and are due to be implemented in major blockchains, for example, Ethereum’s Casper.
However, so far, PoW remains the best option for securing a public blockchain.
Why This Matters for Blockchain Technology
Understanding Consensus algorithms is not just an academic exercise — it has real-world implications for how blockchain systems are designed, deployed, and secured. Whether you are a developer building decentralized applications, a business leader evaluating blockchain adoption, or a curious learner exploring the technology, this knowledge provides a critical foundation.
Key Points to Remember
- Consensus algorithms Research in PoS algorithms or alternatives to PoW is also an important area of research.
- This is especially relevant due to the fact the current Bitcoin network’s power consumption is expected to reach almost 125 TWh by the end of 2018.
- Currently it is almost equivalent to the country of Israel in terms of electricity consumption.
- It has also been suggested that instead of performing an inefficient or single-purpose type of work as is the case with Bitcoin’s PoW, the network power can be used to solve some mathematical or scientific problems.
Conclusion
Consensus algorithms represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.
Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.