A consensus mechanism is a set of rules and procedures that enables a network of computers to agree on the validity of transactions or data, without requiring a central authority. It allows a group of nodes in a decentralized network to reach a mutual agreement on the current state of the network.
Consensus mechanisms are essential to the functioning of many blockchain networks, as they ensure that all nodes in the network agree on the validity of new transactions or changes to the network’s state. Some common consensus mechanisms used in blockchain networks include Proof-of-Work (PoW) and Proof-of-Stake (PoS).
Each consensus mechanism has its own set of rules and procedures that nodes must follow to validate transactions and reach consensus. For example, in PoW, nodes compete to solve a mathematical puzzle, and the first node to solve it is rewarded and its block is added to the blockchain. In PoS, validators are chosen based on the amount of cryptocurrency they hold, and they take turns adding new blocks to the chain.