Securing Permissioned Blockchain-Based Systems: An Analysis on the Significance of Consensus Mechanisms

Abstract

In the era of the Fourth Industrial Revolution (Industry 4.0), blockchain technology emerges as an innovative solution to address the challenges of digital-based business networks, such as traceability, transparency, trust, and data authenticity. This transformative technology has shown promise across diverse domains, including finance, healthcare, and supply chain, by enabling secure data transmission and trust establishment between entities. However, blockchain technology experiences an inherent trade-off issue between the core properties of security, decentralization, and scalability in its type of network. While permissionless blockchain excels in security and decentralization, such networks lack scalability and suitability for business transactions. Conversely, permissioned blockchains offer better performance, but are vulnerable to cyber-attacks due to weaknesses in consensus mechanisms. Therefore, this paper provides an analysis of blockchain technology, emphasizing the pivotal role of consensus mechanisms in ensuring security and system performance. In addition, it identifies practical threats, suggests countermeasures, and underscores the importance of resilient and secure consensus mechanisms. Furthermore, it compares and analyzes existing mechanisms for permissioned blockchains, discusses their limitations, and highlights the significance of ensuring system security and performance. Finally, it uncovers essential factors to consider when designing consensus mechanisms for specific blockchain-based applications, laying the foundation for future research in practical and secure permissioned blockchain applications.

Keywords

• Blockchain
• consensus mechanism
• byzantine fault tolerance
• distributed technology
• permissioned blockchain