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What is Consensus Mechanism?
Crypto Glossary Definition
A consensus mechanism is the method that a blockchain uses to decide on the individual contributions of all its participants. Common examples are Proof of Work and Proof of Stake.
Why Consensus Mechanism Matters
The consensus mechanism is the rule set a blockchain uses to get thousands of independent computers to agree on a single shared transaction history without a central referee. Proof of Work and Proof of Stake are the two dominant approaches, each with very different tradeoffs in energy use, security, and decentralization.
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