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How Do Ethereum Blockchain Transactions Reach Consensus?

  • Ethereum uses Proof of Stake (PoS) consensus layer to verify transactions, add them in order and secure the chain without requiring a central authority.
  • A transaction is first broadcast to the Ethereum network using a peer-to-peer protocol and placed in the mempool until a validator confirms it.
  • Validators are elected to propose new blocks and multiple committees are formed to vote on the validity of a block.
  • Staking is used to activate and control a validator, with every 32 ETH staked creating one validator.
  • The system ensures consensus through a random process, where validators are weighted by their balance, ensuring fairness.
  • A supermajority refers to a vote made by at least two-thirds of the total balance of all active validators in the network. Validators with more ETH have more influence.
  • Finality refers to the point where a block cannot be altered, ensuring transactions in the finalized block are irreversible.
  • Validators earn rewards for making attestations, and can face penalties for making bad votes (slashable offences).
  • Validators must stake 32 ETH to become active and maintain their balance to stay active, with mechanisms in place to limit the number of activations and exits.
  • The consensus process in Ethereum’s PoS system ensures that it remains decentralized without compromising on speed or performance.

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