Consensus as a Service: a brief report on the emergence of permissioned, distributed ledger systems

Distributed ledgers and cryptocurrency systems are fundamentally different. The key difference involves how transactions are validated: Bitcoin uses pseudonyous and anonymous nodes to validate transactions whereas distributed ledgers require legal identities – permissioned nodes to validate transactions. Consequently, distributed ledgers are able to legally host off-chain assets due to their authenticated, permissioned approach to validation. […]

The Ripple Protocol Consensus Algorithm

While several consensus algorithms exist for the Byzantine Generals Problem, specifically as it pertains to distributed payment systems, many suffer from high latency induced by the requirement that all nodes within the network communicate synchronously. In this work, we present a novel consensus algorithm that circumvents this requirement by utilizing collectively-trusted subnetworks within the larger […]