In this brief paper, a new consensus protocol based on the sign of innovations is proposed. Based on this protocol each agent only requires single-bit of information about its relative state to its neighboring agents. This is significant in real-time applications, since it requires less computation and/or communication load on agents. Using Lyapunov stability theorem the convergence is proved for networks having a spanning tree. Further, the convergence is shown to be in finite-time, which is significant as compared to most asymptotic protocols in the literature. Time-variant network topologies are also considered in this paper, and final consensus value is derived for undirected networks. Applications of the proposed consensus protocol in (i) 2D/3D rendezvous task, (ii) distributed estimation, (iii) distributed optimization, and (iv) formation control are considered and significance of applying this protocol is discussed. Numerical simulations are provided to compare the protocol with the existing protocols in the literature.
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