A look at Stellar consensus protocol (SCP) whitepaper

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All information gathered or used for this post was extracted from stellar consensus protocol Whitepaper For more in-depth information about SCP, you can download the PDF above.

Background Introduction to SCP

With the introduction of Pow, PoS, and so on decentralized financial services have been able to counterbalance various forms of completing system transactions using either computing software or using witnesses stakeholders.

Stellar consensus protocol (SCP) was introduced in 2015 by David Mazières it's a decentralized federated Byzantine agreement system that allows decision-making to be reached efficiently using a consensus network by the onboard members through the use of a computing network system.

An important keyword from this system is it uses leaderless computing network decision making to validate system/nodes outcome of transaction payment systems.

Unlike the PoW system that requires either sophisticated computers to validate or complete any transaction, stellar consensus protocol uses decentralized unbiased, leaderless computing network such as nodes, federated voting, nomination, and balloting to complete the seamless transaction in the network.

Federated Byzantine agreement (FBA)

Is a term used in SCP for consensus agreement this process involves having participant from different part of the world, to contribute validation of any transaction it has to do with an agreement whereby all the participants will have to make a unanimous decision from the majority of the participant before any transaction will be settled.

With the help or use of SCP, participants can be able to view or keep track of all transaction history that has taken place while running the network.

The Federated Byzantine agreement allows a group of participants to reach/make the same decision. This system makes sure no one unilaterally decides on their own, an agreement will need to be reached before any specific decision will be made.

Quorum

Quorum is another interesting term used in the stellar consensus protocol it's a node run by the network used to prevent false transaction processing in the network with quorum node it can be quite impossible for any fraudulent used to falsify any unapproved payment receipt or transaction to any other user.

Quorum is a group of honest participants in stellar consensus protocol that oversees all transactions history is not falsified before making final validation of completing such a transaction.

Let's say Mr. A decides to send some amount of crypto to Mr. B it has to undergo quorum validity to verify transactions are safe and valid.

As I've mentioned earlier, for any transaction to be valid in SCP it has to pass the scrutiny of the Federated Byzantine agreement team which involves the majority of the network participant using a federated voting system.

Federated voting

This system involves having a network of participants whereby a particular node will agree on validation of transaction where it had to wait for another node participant to agree on his verified validated node in other for such transaction to be completed.

There are other terms like nomination and balloting where nodes will be voting or nominating which transaction needs to be validated on the network interestingly all this process of voting, validation, balloting, and confirmation takes place within a range of 5sec which is quite fast compared to other decentralized payment validation methods.

Advantages of SCP

Decentralized control; SCP allows anyone to participate in node networking with no central authority allowed to take full control of the network system.
It takes few seconds for transactions to be completed.
Flexible trust; any node can be used for validation of transactions in the network.

Limitations

A. The network security solely depends on the network nodes.

Conclusions SCP seems to be another, convenient means of validating users' transactions and it's a safe means where users can complete the transaction process in a very limited time no user can falsify any transaction since any transaction will have to undergo lots of verification meant before it can be validated through node network participants.

SCP was introduced to eliminate limitations in decentralized proof of stake blockchain it reduces or eliminates the need for excessive consumption of electricity where miners will need electric power in other to successfully host or run a blockchain mining company.

This post was initially posted/written by me here