Balancing Security, Scalability and Decentralization of Blockchain using SHBF-Based Consensus

In the dynamic realm of blockchain consensus algorithms, existing methodologies face challenges concerning security, efficiency, and adaptability. This research addresses these challenges by introducing a new consensus algorithm aimed at resolving the blockchain trilemma, achieving a balanced interplay between decentralization, security, and scalability. This consensus, which is implemented as a federated Byzantine agreement system, integrates the most effective characteristics of several consensus models, such as Proof of Authority, Honey Badger BFT, Stellar Consensus, and Practical Byzantine Fault Tolerance. By integrating adaptive validation mechanisms, the algorithm incorporates the demands of both private and public blockchain ecosystems, enhancing its versatility. Through a robust fault tolerance and identity management system, this consensus ensures resilience against malicious actors, fostering a secure and dependable consensus mechanism. Furthermore, the proposed consensus algorithm optimizes time efficiency by streamlining the consensus process, drawing insights from the nomination and ballot protocol of Stellar consensus. The evaluation results indicate the proficiency of this consensus mechanism in processing transactions, achieving a rate of 1627 TPS. It notably diminishes the necessary block confirmation time to secure a 90.9% defense against double-spending while keeping the likelihood of forking at a minimal 10%. Furthermore, it attains a decentralization metric of 8.094 on a scale of 10.