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Consensus mechanism: definition and meaning

A consensus mechanism is the set of rules a blockchain uses so participants agree on which transactions are valid. Proof of work and proof of stake are the best known.

Why it matters

It determines how secure, fast and energy-hungry a network is.

Related terms

• Proof of work
  Proof of work is a consensus method where miners spend computing power to add blocks. Bitc…
• Proof of stake
  Proof of stake is a consensus method where validators lock up coins as a deposit for the r…

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