Sun. Jul 21st, 2024

Understanding Consensus Protocol for Permissioned blockchain

In the world of blockchain technology, consensus protocols play a crucial role in reaching an agreement among participants in a distributed network. Consensus protocols ensure that transactions are validated and added to the blockchain in a secure and transparent manner. One popular type of blockchain is the permissioned blockchain, which restricts access to a select group of participants. In this article, we will explore the consensus protocol for permissioned blockchain, its benefits, and the implementation process.

The Importance of Consensus Protocols

Consensus protocols serve as the backbone of permissioned blockchains by establishing a set of rules that govern how transactions are verified and added to the blockchain. These protocols ensure that participants in the network reach an agreement on the order and validity of transactions, preventing double spending and other malicious activities.

Types of Consensus Protocols

There are several consensus protocols commonly used in permissioned blockchains. Some of the popular ones include:

  • Proof of Authority (PoA): This protocol relies on a limited number of trusted validators who are responsible for validating and adding transactions to the blockchain. Validators are selected based on their reputation and stake in the network.
  • Practical Byzantine Fault Tolerance (PBFT): PBFT is a consensus protocol designed for high-performance permissioned blockchain networks. It ensures consensus among a group of trusted nodes, even in the presence of faulty or malicious nodes.
  • Delegated Proof of Stake (DPoS): DPoS combines the advantages of both PoA and Proof of Stake (PoS) protocols. It elects a limited number of trusted delegates who are responsible for validating transactions and adding them to the blockchain.
  • Raft Consensus Algorithm: Raft is a consensus algorithm that provides strong consistency guarantees in a permissioned blockchain network. It uses a leader-based approach to ensure agreement among nodes.

Benefits of Consensus Protocols in Permissioned Blockchains

Consensus protocols bring numerous benefits to permissioned blockchains, including:

  • Increased Security: By ensuring that only trusted participants can validate transactions, consensus protocols reduce the risk of fraudulent activities and unauthorized access.
  • Improved Scalability: Some consensus protocols, such as PBFT and DPoS, are designed to facilitate high-performance networks, making permissioned blockchains more scalable and capable of handling a large number of transactions.
  • Efficient Resource Utilization: Consensus protocols optimize resource utilization by minimizing the computational power required for validating transactions, resulting in faster transaction processing times.
  • Enhanced Transparency: Since consensus protocols require agreement among participants, permissioned blockchains provide a higher level of transparency compared to traditional centralized systems.

Implementing Consensus Protocol for Permissioned Blockchain

The implementation process of a consensus protocol for a permissioned blockchain involves several steps:

  • Identify the objectives and requirements of the permissioned blockchain network.
  • Select a suitable consensus protocol based on the network’s specific needs.
  • Set up the network infrastructure, including the necessary hardware and software components.
  • Configure the consensus protocol parameters, such as the number of validators or delegates.
  • Verify and test the consensus protocol implementation to ensure its stability and security.
  • Deploy the permissioned blockchain network and start validating and adding transactions.


Consensus protocols play a vital role in ensuring the security, scalability, and transparency of permissioned blockchains. By establishing a set of rules for validating and adding transactions, these protocols enable participants to reach an agreement in a decentralized manner. Understanding the different types of consensus protocols and their benefits can help organizations make informed decisions when implementing permissioned blockchains. Choose the right consensus protocol that aligns with your network’s requirements and embark on a path towards a secure and efficient blockchain solution.

By admin