Consensus Mechanism
- Consensus means everyone on the network is having the same information and database.
- PoW/PoS is a cryptocurrency consensus mechanism for processing transactions and creating new blocks in a blockchain.
- A consensus mechanism is a method for validating entries into a distributed database and keeping the database secure.
- In the case of cryptocurrency, the database is called a blockchain—so the consensus mechanism secures the blockchain.
Both PoW/PoS consensus mechanisms help blockchains synchronize data, validate information, and process transactions. Each method has proven successful at maintaining a blockchain, although each has pros and cons. However, the two algorithms have very different approaches.
Video : Basics
Question / Answer
Vitaly Dmitrievich Buterin, better known as Vitalik Buterin, is a Russian-Canadian computer programmer, and co-founder of Ethereum. Buterin became involved with cryptocurrency early in its inception, co-founding Bitcoin Magazine in 2011.
Bibliography/References
- None