What Is Consensus Mechanism And Why It Is Important ?

What Is Consensus Mechanism? Here's Why It Is Importance

Story: Mohd Javed December 27, 2022

A consensus mechanism is a fault-tolerant mechanism used in computing and blockchain systems to achieve the necessary agreement on a single data value.

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Cryptocurrency and blockchain technology rely on consensus mechanisms to function.

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The goal of a consensus mechanism is to prevent bad actors from deliberately cheating.

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Consensus mechanisms solve the double-spending problem by making it expensive and difficult to propose a new block of validated transactions.

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There are different consensus mechanism algorithms, each working on different principles.

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Proof of Work (PoW) is a common consensus algorithm used by the most popular cryptocurrency networks such as Bitcoin and Litecoin.

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Proof of Stake (PoS) is another common consensus algorithm developed as a low-cost, low-power alternative to the PoW algorithm.

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