GlossaryIntermediate
Consensus Mechanism
The rules a network uses to agree on which transactions and blocks are valid.
A consensus mechanism is the set of rules a blockchain network uses so that many independent participants can agree on a single, shared version of the transaction history, without needing to trust a central authority.
Different networks use different consensus mechanisms, each with its own trade-offs around security, decentralization, energy use, and speed. Proof of work and proof of stake are two widely used examples.
Examples
- Bitcoin's consensus mechanism is proof of work; Ethereum's is proof of stake.
- A network's consensus mechanism determines who gets to propose the next block and how disputes are resolved.