While investors mind keeping the $ tab on sight if digital assets are the main topic. It is how to be more secure that makes developers and designers of these cryptocurrencies feel compelled . Its operation does not rely on a server alone. The strength of peer to peer (p2p) connectivity is its reliability of one's node . But what if a part of it is not as reliable as the others? This in effect, would cast doubts as to the validity of a transaction is concerned.
NEM took a different approach to ensure the reliability of a p2p connectivity by implementing Eigentrust algorithm.
In a p2p environment, a node must have integrity to what data it has and for it to have a communication as well as transaction to be considered just to deliver a valid transaction to another node.
Transactions carried by nodes over the p2p network are executed in a distributed manner. This is the reason why it is hard to get it compromised or being attacked. There is no central point of failure and it will take a huge amount of time to even attempt to hack such system. But the problem with this is, anonymous (one of the essence of a p2p network) participants can easily be a part of. A poison fruit that may cause problems to the operation. Thus, trust is compromised. So NEM injects Eigentrust++ algorithm in a way to monitor such activities.
Eigentrust++ functions as a reputation manager. It sees every single peer or node within the peer-to-peer network as truthful, trustworthy, not malicious and valid. As a way to illustrate, node A trusts each of the node Hand node I respectively, then also trusts any node that is trusted by node H in this case, is the node F. Thus each node should be reliable and transactions are validated correctly, making the network highly secured.
This verification process is what makes NEM efficiently implemented and it fits how Eigentrust algorithm manages each node to its highest possible security and reliability tests. Managing node in a self-sufficient manner will definitely decrease the processing time. Transfer of data from one node to another will be faster. Trusting node from one another is never been easier .
In effect, a node would have a higher reputation and transactions from this node are considered valid and can be trusted by other nodes. One word mostly associated with blockchain technologies is trustless. For it to be a trustless network, it must establish or implement within its peers how trust is to obtained. So if and when each node does a transaction, the reputation of that node is trusted and no malicious process would appear.
NEM is designed for real world application . With the way people transact business, finance should have a proven tool to seriously being considered and adapted. Connected tools are what bring people closer and make a faster and valid transaction. Backing NEM with Eigentrust algorithm will try to minimize the doubts and the misconceptions of transactions being done digitally. For in-depth information about Eigentrust algorithm visit the wiki page.
Good!