Consensus is the process by which a group of peers – or nodes – on a network determine which blockchain transactions are valid and which are not. Consensus mechanisms are the methodologies used to achieve this agreement. It’s these sets of rules that help to protect networks from malicious behaviour and hacking attacks.
There are many different types of consensus mechanisms, depending on the blockchain and its application. While they differ in their energy usage, security, and scalability, they all share one purpose: to ensure that records are true and honest. Here’s an overview of some of the best known types of consensus mechanisms used by distributed systems to reach consensus.
Different Types of Consensus Mechanisms
Of those consensus algorithms, Proof of Work (PoW) and Proof of Stake (PoS) are the most popular. As a blockchain enthusiast or just starting, you must understand the difference between PoW and PoS :
- PoW relies on a node's ability to solve complex math problems that require large amounts of computing power, power consumption, and high initial investment costs.
- PoS, on the other hand, requires verifiers to stake their tokens instead of having to solve math, thus reducing power consumption, preventing | Shibchain.app 10 production, and avoiding the centralization of resources. PoS is also a protocol that uses a random number generator sequence to select validators.