Consensus Mechanisms Explained
Consensus mechanisms are protocols that ensure all nodes in a blockchain network agree on the current state of the ledger.
Proof of Work (PoW)
Used by Bitcoin and originally by Ethereum:
Miners compete to solve complex mathematical puzzlesFirst to solve gets to add the block and receive rewardsRequires significant computational power and energyVery secure but energy-intensiveProof of Stake (PoS)
Used by Ethereum 2.0, Cardano, and others:
Validators are chosen based on their stakeMust lock up tokens as collateralMore energy-efficient than PoWSlashing penalties for bad behaviorOther Mechanisms
Delegated Proof of Stake (DPoS)
Token holders vote for delegatesFaster transaction processingUsed by EOS, TRONProof of Authority (PoA)
Pre-approved validatorsFast and efficientUsed in private blockchainsProof of History (PoH)
Cryptographic timestampsUsed by Solana for speed