13/08/2025, 11:05 Study Guide - Session 1.

3: Consensus Problem & Byzantine Agreement | CSE1021

Study Guide

Session 1.3 - Consensus Problem & Byzantine Agreement

Course: CSE1021 - Foundations of Blockchain Technology

Module: 1 - Foundations of Blockchain

📚 Study Information
Session Duration: 45 minutes
Learning Level: Intermediate
Prerequisites: Sessions 1.1-1.2
Assessment: Covered in CAT-1, Quiz 1, and Final Exam

🎯 Learning Objectives
By the end of this session, you should be able to:

1. Understand the consensus problem in distributed systems

2. Explain the Byzantine Generals Problem
3. Analyze the AAP (Agreement, Authenticity, Persistence) protocol
4. Compare different consensus mechanisms
5. Evaluate fault tolerance in distributed systems

🔑 The Consensus Problem

Consensus Problem

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The challenge of achieving agreement among distributed nodes in a network, especially when some
nodes may be faulty or malicious.

Why Consensus is Needed

Distributed State: Multiple nodes must agree on system state

No Central Authority: No single node can make decisions for all
Network Failures: Messages may be lost or delayed
Node Failures: Nodes may crash or behave maliciously

⚔️ Byzantine Generals Problem

Byzantine Generals Problem

A metaphor for the consensus problem where Byzantine generals must coordinate an attack, but
some generals may be traitors sending conflicting messages.

The Scenario

Setting: Byzantine army surrounds enemy city

Generals: Each commands a portion of the army
Communication: Only through messengers
Problem: Some generals are traitors
Goal: Loyal generals must agree on attack or retreat

Byzantine Generals Problem Visualization:

General A (Loyal)
|
"Attack" | "Retreat"
|
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General B (Traitor) -----> General C (Loyal)

| |
"Retreat"| "Attack" "Attack"| "Retreat"
| |
General D (Loyal) <----- General E (Loyal)

Problem: Generals C, D, E receive conflicting messages

Solution: Need algorithm to achieve consensus despite traitors

Byzantine Fault Tolerance

Key Properties

Safety: All honest nodes agree on the same value

Liveness: Honest nodes eventually decide on a value
Fault Tolerance: System works despite up to f faulty nodes

Byzantine Fault Tolerance Theorem

In a system with n nodes, Byzantine consensus is possible if and only if n ≥ 3f + 1, where f is

the maximum number of faulty nodes.

Example: With 4 nodes, can tolerate 1 Byzantine fault (4 ≥ 3×1 + 1)

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🔄 AAP Protocol Framework

AAP Protocol

A framework for understanding blockchain consensus through three key properties: Agreement,
Authenticity, and Persistence.

1. Agreement

Definition and Requirements

Definition: All honest nodes agree on the same blockchain state

Consistency: No two honest nodes have conflicting views
Implementation: Consensus mechanisms ensure agreement

2. Authenticity

Definition and Requirements

Definition: Only valid transactions are included in the blockchain

Verification: Digital signatures prove transaction authenticity
Validation: Nodes check transaction validity before acceptance

3. Persistence

Definition and Requirements

Definition: Once a transaction is confirmed, it remains in the blockchain

Immutability: Confirmed transactions cannot be reversed

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Finality: After sufficient confirmations, transactions are permanent

🔧 Consensus Mechanisms

Energy
Mechanism How it Works Fault Tolerance
Usage

Proof of Work Miners solve cryptographic

Up to 49% hash power Very High
(PoW) puzzles

Proof of Stake Validators chosen based on

Up to 33% stake Low
(PoS) stake

Practical BFT Up to 33% Byzantine

Three-phase voting protocol Low
(PBFT) nodes

Delegated PoS Stakeholders vote for

Up to 33% delegates Very Low
(DPoS) delegates

Proof of Work Deep Dive

How PoW Achieves Consensus

1. Mining: Miners compete to solve hash puzzle

2. Block Creation: Winner creates new block
3. Broadcast: Block broadcast to network
4. Verification: Nodes verify block validity
5. Acceptance: Longest valid chain accepted

Practical Byzantine Fault Tolerance (PBFT)

Three-Phase Protocol

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1. Pre-prepare: Primary broadcasts proposal

2. Prepare: Nodes broadcast prepare messages
3. Commit: Nodes broadcast commit messages

🎯 Consensus Properties Analysis

CAP Theorem Relevance

Consistency: All nodes see same data (Agreement)

Availability: System remains operational
Partition Tolerance: Works despite network splits
Trade-off: Can only guarantee 2 out of 3 properties

Blockchain Trade-offs

Bitcoin: Chooses Consistency + Partition Tolerance

Result: May sacrifice availability during network partitions
Benefit: Maintains agreement and works despite network issues

📝 Practice Questions

Question 1 (Multiple Choice)

In the Byzantine Generals Problem, what is the minimum number of generals needed to tolerate 2
traitors?

A) 5
B) 6
C) 7
D) 8

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Answer: C) 7 (n ≥ 3f + 1, so n ≥ 3×2 + 1 = 7)

Question 2 (Short Answer)

Explain the three components of the AAP protocol.

Answer: Agreement ensures all honest nodes agree on blockchain state, Authenticity ensures only
valid transactions are included, and Persistence ensures confirmed transactions remain in the
blockchain permanently.

Question 3 (Multiple Choice)

Which consensus mechanism typically has the highest energy consumption?

A) Proof of Stake
B) Proof of Work
C) Practical BFT
D) Delegated Proof of Stake

Answer: B) Proof of Work

📚 Summary and Key Takeaways

Essential Points

1. Consensus Problem is fundamental to distributed systems

2. Byzantine Generals Problem illustrates challenges of agreement with malicious actors
3. AAP Protocol provides framework for blockchain consensus
4. Different mechanisms offer various trade-offs
5. Fault tolerance requires careful mathematical analysis

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13/08/2025, 11:05 Study Guide - Session 1.3: Consensus Problem & Byzantine Agreement | CSE1021

📋 Study Checklist
Before the exam, make sure you can:

☐ Explain the Byzantine Generals Problem

☐ Calculate Byzantine fault tolerance (n ≥ 3f + 1)
☐ Define Agreement, Authenticity, Persistence
☐ Compare different consensus mechanisms
☐ Analyze trade-offs in consensus design

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