What Is Consensus Mechanism? 

Here's Why It Is Importance

Story: Mohd Javed December 27, 2022

A consensus mechanism is a fault-tolerant mechanism used in computing and blockchain systems to achieve the necessary agreement on a single data value.

Cryptocurrency and blockchain technology rely on consensus mechanisms to function.

The goal of a consensus mechanism is to prevent bad actors from deliberately cheating.

Consensus mechanisms solve the double-spending problem by making it expensive and difficult to propose a new block of validated transactions.

There are different consensus mechanism algorithms, each working on different principles.

Proof of Work (PoW) is a common consensus algorithm used by the most popular cryptocurrency networks such as Bitcoin and Litecoin.

Proof of Stake (PoS) is another common consensus algorithm developed as a low-cost, low-power alternative to the PoW algorithm.