Which blockchain consensus algorithm aims to achieve agreement through a combination of resource ownership and identity verification?
Which blockchain consensus algorithm aims to achieve agreement through a combination of resource ownership and identity verification?
Answer: The blockchain consensus algorithm that aims to achieve agreement through a combination of resource ownership and identity verification is the Proof of Authority (PoA) algorithm. In the PoA consensus mechanism, a set of validators validate blocks, and the validity of these validators is based on their identities and stake in the network. This means that in PoA, the ability to create new blocks and secure the network is based on the validator’s reputation and their financial stake in the system, rather than solving complex mathematical puzzles as in Proof of Work (PoW) or Proof of Stake (PoS) algorithms. PoA is considered more efficient and environmentally friendly than PoW, making it a popular choice for private or consortium blockchains where identity verification is important, and high transaction throughput is required.