NEO Announcement: New Consensus Mechanism For The New Mainnet

The Chinese-based blockchain platform NEO is in the latest altcoin news for implementing a new iteration of the consensus algorithm which is the Byzantine Fault Tolerance mechanism (dBFT 2.0) on its mainnet. The NEO announcement comes from a press release and shows the new algorithm with its immediate transaction finality.

In the dBFT 2.0, NEO will include a new procedure for reintegrating failed nodes back into the network – plus a “commit phase” of consensus which will alleviate the forking issues by including a step that forces the node assignment to new blocks. The NEO announcement was shared on many best cryptocurrency news sites.

Meanwhile, the consensus mechanism dBFT is actually different from the ones reserved for the top cryptocurrency blockchains Bitcoin and Ethereum, mostly because of the commit phase. For Bitcoin, the consensus mechanism is a proof-of-work (PoW) protocol which allows BTC miners to complete on making the next block which means that there are competing forks on the blockchain – as the coming altcoin news show.

On the other hand, Ethereum uses a PoW mechanism for creating and validating new blocks which as per the new NEO announcement, can result in forks and potential transaction reversals. The founder and creator of NEO, Erik Zhang, commented on how the new transaction finality standard can actually translate into benefits for the users:

“With this improvement, dBFT will have more strict finality. Users only need to wait for one confirmation (15 seconds) to ensure the irreversibility of the transactions and prevent double-spending. This is very suitable for financial applications,” he said.

As the current and latest cryptocurrency news show, dBFT 2.0 is the new NEO announcement which will radically improve the NEO blockchain, NEO 3.0. As we previously reported, NEO announced that it planned to upgrade its mainnet to v2.10.2 on June 3. Then, Zhang also commented on his plans to integrate giant entertainment applications on Neo 3.0 and stated:

“When we talk about Neo 3.0 being ready for large-scale commercial use, we mean it provides the possibility to run large-scale applications with blockchain technology. In the future, we’d like to see applications such as YouTube, Alipay, and gaming giants like Tencent and Blizzard run on blockchain, and Neo 3.0 will allow these big organizations to do that.”