PLEDGE: An IoT-oriented Proof-of-Honesty based Blockchain Consensus Protocol

The existing lottery-based consensus algorithms, such as Proof-of-Work, and Proof-of-Stake, are mostly used for blockchain-based financial technology applications. Similarly, the Byzantine Fault Tolerance algorithms do provide consensus finality, yet they are either communications intensive, vulnerable to Denial-of-Service attacks, poorly scalable, or have a low faulty node tolerance level. Moreover, these algorithms are not designed for the Internet of Things systems that require near-real-time transaction confirmation, maximum fault tolerance, and appropriate transaction validation rules. Hence, we propose "Pledge," a unique Proof-of-Honesty based consensus protocol to reduce the possibility of malicious behavior during blockchain consensus. Pledge also introduces the Internet of Things centric transaction validation rules. Initial experimentation shows that Pledge is economical and secure with low communications complexity and low latency in transaction confirmation.

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