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Redirected from: consensus algorithm

Definition: consensus mechanism


The protocol that determines how crypto transactions are validated and which miner adds the next block to the blockchain. The very heart of blockchain operations, the two primary methods are proof-of-work (PoW) and proof-of-stake (PoS). Proof-of-work consumes enormous amounts of electricity solving a mathematical puzzle, whereas proof-of-stake relies on how much crypto the miner owns (has at stake). See proof-of-work algorithm, proof-of-stake algorithm and blockchain.