A blockchain is a distributed data ledger to which all participants have access. Different protocols can be used to make sure that the ledger is coherent. Consensus protocols are currently the most effective, and the only ones capable of immediately recording transactions without the usual latency of blockchain-based systems. However, consensus protocols are not reliable in instances where more than one-third of network participants are malicious or inactive.
Clearmatics Technologies asked CEA-List to develop algorithms to limit the risk of exceeding this critical threshold for its blockchain for the financial markets. An algorithm inspired by CEA-List distributed systems research was developed to provide proof of breach of protocol and identify the parties responsible. It ensures early detection of abnormal behavior and—crucially—proof, which is a good deterrent against bad actors. The algorithm compares the exchanges between network participants, such as the kind of reply to a message, with what would be expected. A second algorithm incentivizes participation by rewarding active members based on the number of messages exchanged.
The specifications for both software applications were transferred to Clearmatics Technologies for further development and implementation in the company’s systems. These next steps will give CEA-List engineers a test case that is very similar to a real-world use case so that their approach can be validated, and further development work completed.
Read article at http://www.cea-tech.fr/