Consensus Mechanism

A consensus mechanism is the method by which a blockchain network agrees on the current state of the ledger and validates new transactions. It ensures all participants (nodes) reach agreement without relying on a central authority. The most well-known consensus mechanisms are Proof of Work (used by Bitcoin) and Proof of Stake (used by Ethereum). Other types include Delegated Proof of Stake, Proof of Authority, and Byzantine Fault Tolerance.