Consensus mechanism

How it is used

Used when comparing networks and in technical documents. People also say consensus algorithm, consensus protocol or just consensus: 'the network reached consensus', 'a consensus failure'. Each mechanism has trade-offs in security, speed and energy use.

Example sentences

1. The two chains use a different consensus mechanism, so their security models are not the same.

2. Ethereum changed its consensus mechanism from proof of work to proof of stake in 2022.

Common collocations

• consensus algorithm
• reach consensus
• consensus layer
• change the consensus mechanism

Related terms

• proof of workA consensus mechanism in which miners use computing power to solve a puzzle before they can add a block. It makes attacks very expensive but uses a lot of energy. Bitcoin uses it.
• proof of stakeA consensus mechanism in which validators lock up coins as a stake to win the right to propose and confirm blocks. Those who break the rules can lose part of their stake. It uses far less energy than proof of work.
• validatorA participant in a proof-of-stake network who locks up coins and runs software to propose new blocks and check blocks proposed by others. Validators earn rewards and can be penalized for misbehaving.
• nodeA computer that runs the blockchain software, keeps a copy of the ledger and passes transactions and blocks on to other computers in the network.
• miningThe process in proof-of-work blockchains where computers compete to solve a difficult puzzle. The winner adds the next block and receives newly created coins and fees as a reward.

More terms: Consensus, Mining & Staking

• miner
• staking
• halving
• block reward
• hash rate