đ˘ Blockchain Consensus Mechanisms
âď¸ How do thousands of computers agree on whatâs true in a decentralized network? Thatâs where consensus mechanisms come in.
A blockchain is a digital ledger that records transactions in blocks, which are linked together in chronological order and visible to everyone on the network.
A consensus mechanism is the method that lets all nodes (computers that store and verify blockchain data) agree on the state of the ledger without needing a central authority.
The two main types:
Proof of Work (PoW): Miners (computers solving math puzzles) compete to validate transactions. The first to solve the puzzle adds the block to the blockchain and earns a reward. Bitcoin uses PoW.
Proof of Stake (PoS): Validators lock up (âstakeâ) their coins to propose new blocks. The network selects validators based on stake and other rules. Ethereum uses PoS.
Why it matters: Consensus ensures that transactions are verified, blocks arenât duplicated, and nobody can cheat the system.
Without consensus, a blockchain would be vulnerable to double-spending attacks, where someone could spend the same coin twice.
đĄ Fun Fact: Bitcoinâs PoW requires more electricity than some countries to secure the networkâshowing the incredible scale of decentralized security.
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