TECHNICAL CONCEPTS

Consensus (Consensus Mechanism)

Definition

A consensus mechanism is the method by which a blockchain network agrees on the validity of transactions and the state of the ledger. Common types include Proof of Work and Proof of Stake.

Example

💡 Example

Bitcoin uses Proof of Work consensus while Ethereum transitioned to Proof of Stake for better energy efficiency.

Risks to Consider

⚠️ Risks
  • 51% attacks
  • Centralization
  • Security assumptions

Common Questions

Why did Ethereum switch from Proof of Work to Proof of Stake?

For better energy efficiency, improved security, and to enable features like sharding for better scalability.

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