NEO updates consensus algorithm ahead of new mainnet launch

NEO updates consensus algorithm ahead of new mainnet launch

NEO has upgraded the consensus algorithm on its mainnet, industry website Cointelegraph has reported.

The Chinese-based blockchain platform has launched the new iteration of its consensus algorithm, the Byzantine Fault Tolerance mechanism (dBFT 2.0), which is designed to provide “immediate transaction finality”. The improved version also includes “a recovery method to help failed nodes on the NEO network get back online with minimal disruption”.

With the original dBFT algorithm, NEO’s goal was to avoid some of the potential pitfalls around proof-of-work algorithms, used by popular public blockchains such as Bitcoin and Ethereum. NEO’s algorithm has a commit phase of consensus, which forces nodes to commit to a single new block, thus eliminating the possibility of forked blocks. The new iteration builds on the original concept.

“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,” Erik Zhang, founder, core developer of NEO, said in a press release.

The dBFT 2.0 algorithm will be part of NEO’s next big system upgrade, NEO 3.0, which is scheduled to be released in the second quarter of next year. Following the upgrade, existing NEO holders will need to swap their NEO2 tokens for new NEO3 tokens.

In terms of market performance, the NEO token has struggled in recent sessions amid a larger cryptocurrency downswing. Yesterday, the coin experienced a late drop that saw its price plunging to a 12-day low of $11.09. The coin finished the session at $11.48, down from its opening level of $12.62.

In today’s trading, the NEO price stood at $11.47, as of 15:44 BST. The digital coin has lost nearly 6% of its value in the past 24 hours. Its total market capitalisation currently stands at $809 million.

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