NEO is a blockchain platform that uses a consensus algorithm to validate transactions and secure its network. In this article, we'll take a closer look at NEO's consensus algorithm and explain it in simple language.

What is a Consensus Algorithm?

A consensus algorithm is a set of rules and processes that ensures that all the nodes (computers) on a blockchain network agree on the same version of the ledger (the record of all transactions). In simpler terms, it's a way to make sure everyone is on the same page and that no one can cheat or alter the ledger.

NEO's Consensus Algorithm: Delegated Byzantine Fault Tolerance (dBFT)

NEO uses a consensus algorithm called Delegated Byzantine Fault Tolerance (dBFT). This algorithm is a modified version of the Byzantine Fault Tolerance (BFT) algorithm, which was first proposed by Leslie Lamport in the 1980s.

The dBFT algorithm is designed to be fast, efficient, and reliable. It's based on the idea of having a group of nodes (called consensus nodes) that are responsible for validating transactions and reaching a consensus on the state of the ledger. These consensus nodes are selected through a process called NEO Council Election.

How Does dBFT Work?

Here's a simplified explanation of how dBFT works:

1. Transactions are broadcasted to all nodes on the network.

2. The consensus nodes receive the transactions and validate them.

3. The consensus nodes then vote on whether or not to include the transactions in the next block.

4. If two-thirds of the consensus nodes agree to include the transactions, they are added to the next block and the block is added to the blockchain.

5. If less than two-thirds of the consensus nodes agree, the transactions are rejected and not added to the blockchain.

6. Once a block is added to the blockchain, all nodes on the network update their copy of the ledger to reflect the new state.

Benefits of dBFT

dBFT has several benefits over other consensus algorithms:

1. It's fast and efficient: dBFT can process transactions quickly and has a high throughput (the number of transactions that can be processed per second).

2. It's secure: dBFT ensures that all nodes on the network agree on the same version of the ledger, making it difficult for anyone to cheat or alter the ledger.

3. It's decentralized: While NEO uses a small group of consensus nodes, anyone can become a consensus node through the NEO Council Election process, making it more decentralized than other consensus algorithms.

Conclusion

NEO's consensus algorithm, Delegated Byzantine Fault Tolerance (dBFT), is a fast, efficient, and secure way to validate transactions and reach consensus on the state of the ledger. It's based on a modified version of the Byzantine Fault Tolerance (BFT) algorithm and uses a small group of consensus nodes to validate transactions. With its many benefits, dBFT is a promising consensus algorithm that could be adopted by other blockchain platforms in the future.