Consensus

Consensus in blockchain refers to the method by which all nodes in a decentralized network agree on the state of the ledger. It’s the backbone of trust in systems like Bitcoin and Ethereum, ensuring every transaction is valid without needing a central authority.

How Consensus Works

In a blockchain, every participant (or node) must agree on which transactions are legitimate. Consensus mechanisms, such as Proof of Work (PoW), Proof of Stake (PoS), and others, coordinate this agreement. These mechanisms prevent fraud like double-spending and ensure that every new block added to the chain is accurate and accepted by the network.

Different Consensus Mechanisms

Each blockchain can adopt its own consensus model. PoW relies on computational power, making it energy-intensive but secure. PoS is more energy-efficient and rewards validators based on their stake. Other models like Delegated Proof of Stake (DPoS) or Practical Byzantine Fault Tolerance (PBFT) offer different trade-offs in terms of speed, security, and decentralization.

A Pillar of Decentralization

Without consensus, blockchains wouldn’t function. It’s what replaces the role of traditional intermediaries like banks, ensuring that data on a distributed network is both secure and agreed upon by all parties.