How do transactions get validated in blockchain?

When you make a purchase using blockchain technology, how does the transaction get validated? This can be a confusing process for those who are new to blockchain, so we’re going to break it down for you. In this blog post, we will explain how transactions are validated in blockchain and what that means for users. We’ll also discuss the role of Ethereum in blockchain validation and why it is so important. So, if you’re curious about blockchain validation, keep reading!

The validation of the information is carried out through a mechanism called consensus. This mechanism defines whether a record or information can be registered in a block.

A blockchain network can “agree” on a transaction in many ways, dependingon the scope of the application process that is happening20, then only the most used “consensus” will be developed, however, in the cited references additional relevant information will be made available regarding the technical aspects in validating the data.


1. Test Work (PoW)


It is one of the most popular consensuses, and especially used in crypto asset. The nodes show their effort (proof-of-work) competing to solve a complicated cryptographic problem that requires many calculations and, therefore, a lot of computing energy.

2. Proof of participation (PoS)

The participation test is an alternative to the PoW for public Blockchain. In this case, the nodes validate the new blocks of the chain in a kind of lottery, where the tickets would be the token of turn. This type of mechanism is very agile but can have a disadvantage, for exemple, in those who have more crypto actives, more crypto actives win.

3 Proof of delegated participation (DPoS)

It is a version of PoS in which the owners of the crypto active choose witnesses (hence its delegated name), allowing a large decentralization that can potentially benefit small owners, but can facilitate possible anticompetitive practices that would promote cartelization, which would go against free and healthy competition.

4. Proof of Leased Share (LPoS)

Waves designed this refined protocol to solve centralization problems and vulnerabilities to certain attacks. Small owners “rent” or group their tokens to have more options to generate a new block and earn the reward.

5. Elapsed Time Test (PoET)

This algorithm, developed by Hyperledger Sawtooth, is suitable for public or private networks; it defines random waiting times to generate new blocks per stochastically chosen nodes. It is very impartial, but it depends on the processing level that the network nodes have.

6. Practical Byzantine Fault Tolerance (PBFT)

Its name refers to the story of the Byzantine generals. In this case, the generals know and trust each other, simply to produce concepts they generate votes in several rounds. This mode is Ideal for permitted systems (among others used by Hyperledger Fabric, and NEO). The attached figure presents the flow of the consensus process.

There are many other distributed algorithms, which can be found in the
following attached link:https://www.verypossible.com/insights/pros-and-cons-of-differentBlockchain-consensus-protocols

Source Ministry of Digital Transformation Columbia

Blockchain validation is an important process that helps ensure the security and accuracy of transactions. In blockchain, this validation is done through a system called Ethereum. Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. Thanks to Ethereum, blockchain validation is reliable and secure, making it the perfect choice for online transactions. If you’re interested in learning more about blockchain validation, be sure to check out our other blog posts on the topic!

Validating Data Integrity with Blockchain

Leave a Reply

Your email address will not be published. Required fields are marked *

Start Automating Your Life Using InvestGlass

With Swiss digital tools to make every part of your process more human.

Copyright © 2022 InvestGlass SA. All rights reserved.
Made in Switzerland 🇨🇭