Proof of Reputation as Liquid Democracy for Blockchain -- Steemit

The reliable way of achieving consensus in blockchain is critical part for design of any system intended to support transparent and reliable financial ecosystem, unbiased content management and communication systems or trustable and efficient shared data storage - in all cases cheap, fast and secure at the same time. In the following, we will briefly discuss problems specific to different types of consensus algorithm, indicating problems associated with them. Further, we will introduce Proof-Of-Reputation (POR) idea and follow up with different variations and parameters of the algorithm and discuss possible architectures of its implementation. The key of the blockchain is its ability to solve so called "Byzantine General's Problem" of distributed coordination of multiple agents, with some of the agents being potentially unreliable or even alien. If probability of all agents in the system to be responsible for new block formation is the same, and there may be up to M unreliable or alien agents in the network, it is required to have at least 2*M 1 reliable and loyal agents.