Comparison between consensus algorithms in an IIoT network : Analysis of Proof of Work, Proof of Stake and Proof of Authentication

Abstract: The Industrial Internet of Things (IIoT) is growing day by day and is implemented in many industries. The centralized architecture of an IIoT system is composed of several devices that communicate with a special device only via one link, in an instance where this one link is attacked, major problems could occur for the whole system. The solution is to decentralize the entire architecture, a feature that the implementation of blockchain technology provides. Blockchain technology uses numerous consensus algorithms and some of the consensus algorithms require a large amount of computational power , such as the proof of work consensus algorithm. The problem is that IIoT devices have limited processor performance therefore it is important to find consensus algorithms that are suitable for an IIoT system in terms of time efficiency and electricity consumption. The question then becomes, which of the following different consensus algorithms; proof of work, proof of stake and proof of authentication performs best in an IIoT environment in terms of time efficiency and electricity consumption?  This question can be answered by implementing blockchain technology using the three aforementioned consensus algorithms in an IIoT environment to see which consensus algorithm is the most time efficient and uses the smallest amount of electricity. The results showed that proof of stake was the best consensus algorithm both in terms of time efficiency and electricity consumption.