Consensus Mechanism
The method by which a blockchain network agrees on the current state of the ledger and validates new transactions.
In-Depth Explanation
Consensus mechanisms solve the problem of agreement without central authority. Proof-of-Work (Bitcoin) uses computational puzzles; Proof-of-Stake (Ethereum post-merge) uses economic collateral. Different mechanisms offer different security models, energy usage, and decentralization tradeoffs. Consensus is what makes blockchains trustless.
Related Terms
Proof of Work
PoWA consensus mechanism where miners compete to solve computational puzzles, with the winner adding the next block and earning rewards.
Proof of Stake
PoSA consensus mechanism where validators are chosen to create blocks based on the amount of cryptocurrency they've staked as collateral.
Validator
A participant in a proof-of-stake network who stakes tokens and is responsible for proposing and attesting to new blocks.
More in Infrastructure
View all →Gas Fees
Transaction fees paid to validators/miners for executing operations on a blockchain.
Gwei
A denomination of Ether equal to one billionth of an ETH, commonly used to express gas prices.
Layer 2
L2Scaling solutions built on top of a base blockchain (L1) that process transactions off-chain while inheriting L1 security.
Layer 1
L1The base blockchain that provides security and consensus, such as Ethereum, Bitcoin, or Solana.