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Consensus

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Means a consensus of opinion among people on a particular issue.

 

What is it About?

In the context of cryptocurrencies and blockchains, there is a consensus when multiple nodes (usually the majority of nodes in the network) have the same blocks in the locally validated best blockchain.

This means that the blocks in the blockchain are the correct ones for the majority of nodes, and therefore the transactions they contain are validated.

Different consensus mechanisms depend on the project, the underlying blockchain, and the currency. The two best-known are

  • Proof-of-Work (e.g. Bitcoin)
  • Proof-of-Stake e.g. with Cardano)
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