What is Consensus mechanism?
The rule that decides which version of a chain's history is correct — proof of work or proof of stake.
A consensus mechanism lets computers that do not trust each other agree on the next block. Proof of work spends energy; proof of stake locks capital and penalises misbehaviour with slashing.
The choice shapes the asset: work-priced issuance and miner economics look very different from staking yields and validator concentration, and both show up in a coin's risk profile.
Related terms
- Proof of workBasics
Consensus by spending compute to find a hash below a target; Bitcoin's original mechanism.
- Proof of stakeBasics
Consensus by locking tokens to propose and attest blocks, with slashing for misbehaviour.
- StakingDeFi
Locking tokens to back a network or a protocol, usually for a yield of new issuance or fees.