Consensus Algorithms

What are “Consensus Algorithms”?

A consensus algorithm is a mechanism that enables distributed systems, like blockchain networks, to reach an agreement on a single data value. These algorithms ensure that all participants validate and record transactions consistently, maintaining security and trust without a central authority. Different consensus algorithms exist, each with a unique approach to achieving collective agreement. 

Why are “Consensus Algorithms” important?

A cryptocurrency's consensus algorithm determines the network's security, decentralization, and efficiency. It also ensures that transactions are verified and recorded correctly, preventing fraud and double spending.