What type of consensus algorithm does the network use ?
The Theta Network uses a novel consensus algorithm called the Theta Protocol.
This protocol is a hybrid of two existing consensus algorithms, namely Proof-of-Stake (PoS) and Byzantine Fault Tolerance (BFT). Proof-of-Stake is a consensus algorithm that rewards users for holding coins in their wallets. This incentivizes users to hold coins and also helps secure the network.
The PoS algorithm used by Theta Network is based on the Ouroboros protocol, which was developed by IOHK. Byzantine Fault Tolerance is a consensus algorithm that allows for distributed systems to reach agreement on a single value without relying on a central authority. This ensures that the network remains secure and resilient even if some nodes fail or become malicious.
The Theta Protocol combines these two algorithms to create an efficient and secure consensus mechanism for the network. It uses PoS to select validators who are responsible for verifying transactions and BFT to ensure that all validators agree on the same set of transactions. This ensures that all transactions are processed quickly and securely, while also providing incentives for users to participate in the network.
