Back to Glossary
⛓️
Consensus Mechanism
Blockchain Basics•blog.difficulty.intermediate
A consensus mechanism is a method used by blockchains to agree on the current state of the network and validate new transactions.
Simple Explanation
Imagine a group of people trying to agree on what time it is without trusting any single clock. A consensus mechanism is the set of rules they follow to all agree on the correct time.
Why It's Needed
Without a central authority, blockchain networks need a way for all participants to agree on:
- Which transactions are valid
- The order of transactions
- The current state of the ledger
Common Types
- Proof of Work (PoW): Solve puzzles to validate (Bitcoin)
- Proof of Stake (PoS): Stake coins to validate (Ethereum)
- Delegated PoS: Vote for validators
- Practical Byzantine Fault Tolerance: Committee-based