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Redirected from: consensus protocol

Definition: consensus mechanism

The protocol that determines how transactions are validated and added 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.