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A Taxonomy of Blockchain Technologies Principles of Identification and Classifica
2,073
, blockchain based systems - with its federated set of participants - is a clear example of this kind. Blockchain based systems resort on specific topologies to create the peer network that ultimately determines how the validation process will evolve. It is important to mention that Consensus Network Topology is linked to the level of (de)centralisation in the validation process but this is not the only determinant. Also other factors like the reward mechanism (see Section XI) heavily influence the v
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A Taxonomy of Blockchain Technologies Principles of Identification and Classifica
2,074
, blockchain based systems - with its federated set of participants - is a clear example of this kind. Blockchain based systems resort on specific topologies to create the peer network that ultimately determines how the validation process will evolve. It is important to mention that Consensus Network Topology is linked to the level of (de)centralisation in the validation process but this is not the only determinant. Also other factors like the reward mechanism (see Section XI) heavily influence the v
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A Taxonomy of Blockchain Technologies Principles of Identification and Classifica
2,075
alidation (Bonneau et al., 2015). As a matter of an example, Bitcoin has a decentralised validation process, which is still be accompanied by ever increasing concentration of computational power devoted to the proof-of-work by network participants. Indeed, during the period 2013- 2015, the cumulative market share of the largest ten pools relative to the total market hovered in the 70% to 80% range (Tasca, 2015). We identify three possible layouts for Consensus Network Topology : 1. Decentralised. Th
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A Taxonomy of Blockchain Technologies Principles of Identification and Classifica
2,076
alidation (Bonneau et al., 2015). As a matter of an example, Bitcoin has a decentralised validation process, which is still be accompanied by ever increasing concentration of computational power devoted to the proof-of-work by network participants. Indeed, during the period 2013- 2015, the cumulative market share of the largest ten pools relative to the total market hovered in the 70% to 80% range (Tasca, 2015). We identify three possible layouts for Consensus Network Topology : 1. Decentralised. Th
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A Taxonomy of Blockchain Technologies Principles of Identification and Classifica
2,077
ere exist implementations that are decentralised. Bitcoin as the pioneer in digital currencies established a distributed P2P network, which enables direct transactions to every node within the network. The validation process within the Bitcoin network is decentralised through miners and full nodes who validate the transactions within the network (Nakamoto, 2008) connected in a random way as provided by super-nodes. This network illustrates a decentralised Consensus Network Topology. Obviously, this l
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A Taxonomy of Blockchain Technologies Principles of Identification and Classifica
2,078
ere exist implementations that are decentralised. Bitcoin as the pioneer in digital currencies established a distributed P2P network, which enables direct transactions to every node within the network. The validation process within the Bitcoin network is decentralised through miners and full nodes who validate the transactions within the network (Nakamoto, 2008) connected in a random way as provided by super-nodes. This network illustrates a decentralised Consensus Network Topology. Obviously, this l
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A Taxonomy of Blockchain Technologies Principles of Identification and Classifica
2,079
ayout is independent from the Consensus Immutability layout (Peercoin and NXT also show decentralised network topologies). 2. Hierarchical. There are other implementations that are not decentralised, and there exists an irregularity of the role the nodes have. For example, in Ripple (Ripple, 2015) the network topology is divided into tracking and validating nodes. The tracking nodes are the gateway for submitting a transaction or executing queries for the ledger, in addition to that the validating no
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A Taxonomy of Blockchain Technologies Principles of Identification and Classifica
2,080
ayout is independent from the Consensus Immutability layout (Peercoin and NXT also show decentralised network topologies). 2. Hierarchical. There are other implementations that are not decentralised, and there exists an irregularity of the role the nodes have. For example, in Ripple (Ripple, 2015) the network topology is divided into tracking and validating nodes. The tracking nodes are the gateway for submitting a transaction or executing queries for the ledger, in addition to that the validating no
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A Taxonomy of Blockchain Technologies Principles of Identification and Classifica
2,081
des have the same functions as tracking nodes but they can also contribute additional sequences to ledger by 11 validation (Ripple, 2015). This kind of solution yields (or can be extrapolated to) a hierarchical network topology. In the community of developers these hierarchical topologies are also referred to as "Consortium blockchains". 3. Centralised. In some specific implementations, a central authority may need (or wish) to control what is added to the ledger. An example for this are digital
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A Taxonomy of Blockchain Technologies Principles of Identification and Classifica
2,082
des have the same functions as tracking nodes but they can also contribute additional sequences to ledger by 11 validation (Ripple, 2015). This kind of solution yields (or can be extrapolated to) a hierarchical network topology. In the community of developers these hierarchical topologies are also referred to as "Consortium blockchains". 3. Centralised. In some specific implementations, a central authority may need (or wish) to control what is added to the ledger. An example for this are digital
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A Taxonomy of Blockchain Technologies Principles of Identification and Classifica
2,083
versions of fiat currencies: the so called Ce
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A Taxonomy of Blockchain Technologies Principles of Identification and Classifica
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