Stellar Consensus Protocol
The Stellar Consensus Protocol (SCP) is a decentralized consensus algorithm designed for the Stellar network, enabling fast and secure transaction validation without relying on proof-of-work or proof-of-stake. It uses a federated Byzantine agreement system where nodes reach consensus through quorum slices, allowing for high throughput and low latency in financial transactions. SCP is notable for its energy efficiency and ability to handle partial network failures while maintaining security.
Developers should learn SCP when working on blockchain or distributed ledger projects that require scalable, low-cost consensus mechanisms, particularly for financial applications like cross-border payments or asset tokenization. It's useful for building decentralized applications (dApps) on Stellar or similar networks where trust and speed are critical, as it avoids the energy-intensive mining of traditional blockchains. Understanding SCP is essential for roles in fintech, cryptocurrency development, or distributed systems engineering.