Consensus mechanism

When a transaction takes place in a blockchain network, the status of the transaction must be determined by the participants of the network. This is done through an algorithm. There are different types of algorithms that can be used for this and these are called consensus mechanisms. These algorithms not only determine the status, but also the order of the transactions. Popular consensus algorithms include Proof-of-Work (PoW) and Proof-of-Stake (PoS).

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Cryptopedia: Consensus mechanism