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stem). To avoid the
single point of failure, these centralised can be extended into hierarchical constructs which exhibit larger
scalability and more redundancy, while keeping the communication efficient. Alternative to those centralised
topologies, decentralised solutions have been proposed. Since the dawn of the Internet, technical systems
have evinced a transition towards decentralised arrangements (Wright and De Filippi, 2015) where all the
nodes are equivalent to any other. For most applications | [
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stem). To avoid the
single point of failure, these centralised can be extended into hierarchical constructs which exhibit larger
scalability and more redundancy, while keeping the communication efficient. Alternative to those centralised
topologies, decentralised solutions have been proposed. Since the dawn of the Internet, technical systems
have evinced a transition towards decentralised arrangements (Wright and De Filippi, 2015) where all the
nodes are equivalent to any other. For most applications | [
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, 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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, 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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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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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
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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
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"##cy",
"and",
"open",
"source",
"software",
"project",
".",
"The",
"Li",
"##tec",
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"##n",
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"technically",
"nearly",
"identical",
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"Bit",
"##co",
"##in",
",",
"except",
"for",
"the",
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"P",
"##eer",
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"##C",
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"A",
"concept",
"that",
"allows",
"attach",
"##ing",
"meta",
"##data",
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"Bit",
"##co",
"##in",
"transactions",
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"lever",
"##aging",
"the",
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"##co",
"##in",
"in",
"-",
"f",
"##ras",
"##truct",
"##ure",
"for",
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"trading",
"im",
"##mu",
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".",
"O",
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"##par",
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",",
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"a",
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"and",
"decent",
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"##ised",
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"##rdo",
"##r",
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"enable",
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"N",
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"##ther",
"##eum",
"E",
"##ther",
"##eum",
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"an",
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"-",
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"block",
"##cha",
"##in",
"-",
"based",
"applications",
"in",
"different",
"business",
"fields",
".",
"Mona",
"##x",
"Mona",
"##x",
"is",
"an",
"open",
"platform",
"for",
"developers",
"and",
"Dev",
"##O",
"##ps",
"to",
"build",
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",",
"and",
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"block",
"##cha",
"##in",
"-",
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"for",
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"ecosystems",
".",
"Mona",
"##x",
"is",
"known",
"as",
"a",
"private",
"block",
"##cha",
"##in",
"offered",
"by",
"the",
"mon",
"##ax",
"company",
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"Co",
"##smos",
"Co",
"##smos",
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"an",
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"for",
"cross",
"-",
"chain",
"inter",
"##oper",
"##ability",
"where",
"independent",
"block",
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"can",
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"-",
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"an",
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"I",
"##BC",
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"protocol",
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"a",
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"of",
"virtual",
"U",
"##DP",
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"T",
"##CP",
"for",
"block",
"##cha",
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"by",
"the",
"Byzantine",
"fault",
"tolerant",
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"##FT",
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"consensus",
"algorithm",
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"to",
"Ten",
"##der",
"##min",
"##t",
".",
"CO",
"##MI",
"##T",
"CO",
"##MI",
"##T",
"is",
"a",
"cry"
] | 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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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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