Decentralization and Transparency: How Blockchain Technology is Redefining Trust in the Digital Age

Abstract

This research explores the role of blockchain technology in enhancing decentralization and transparency, focusing on the evaluation of four key consensus algorithms: Some of the consensus algorithms include Proof of Work (PoW), Proof of Stake (PoS), Byzantine Fault Tolerance (BFT), and Zero-Knowledge Proof (ZKP). Based on these algorithms, the following assessments were made through comprehensive experiments, evaluating them with regard to transaction speed, energy consumption and security. The findings also show that it takes an average of 5 seconds for other participants to transact and consume a minimum of 5kWh of energy. PoS arrives next, with a transaction speed of 30 seconds, and an energy consumption 10 kWh making it efficient but not as energy-frugal as Bitcoin. PoW, on the other hand, offers a considerably high level of security but the rate of transactions is considerably slow, taking 600 seconds and comparably the energy consumed is 250 kWh. ZKP has an average transaction time of 10 seconds and energy consumption stands at 8 kWh which of course offers better privacy but not superior in any way. These findings are in concordance with prior literature and also reveal the remarkable application of the knowledge of blockchain in different sectors like finance, governance, and smart city solutions. The findings of the research show that more caution should be taken in the selection of consensus algorithms depending on the application in question.