Consensus mechanisms are protocols that ensure all nodes in a blockchain network agree on the validity of transactions. They are crucial for maintaining the integrity and security of decentralized systems.
Used by Bitcoin and Ethereum (pre-2.0), PoW requires nodes to solve complex mathematical puzzles to validate transactions and create new blocks.
Validators are chosen to create new blocks based on the amount of cryptocurrency they "stake" as collateral.
Token holders vote for "delegates" who are responsible for validating transactions and maintaining the blockchain.
A consensus algorithm designed to work efficiently in asynchronous systems and tolerate byzantine faults.
Different consensus mechanisms have varying trade-offs in terms of security, scalability, and decentralization.
Ongoing research is focused on improving existing mechanisms and developing new ones to address current limitations.