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    Author Topic: Consensus Mechanism in Blockchain Technology  (Read 303 times)
    TheVeteranAngel (OP)
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    June 22, 2024, 08:28:30 PM
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    Blockchain technology aims to enable decentralization. But how are transactions kept secure in a decentralized system?

    Without a central authority, how are disputes resolved on the blockchain? Can all transactions be trusted to be valid? Is there a risk of users spending funds they don't own since there’s no one to validate transactions?

    In blockchains, nodes replace central authorities. These nodes uphold the blockchain's integrity through consensus mechanisms, which are systems for reaching agreements on the network.

    For example, Bitcoin, created by Satoshi, uses a consensus mechanism called Proof of Work (PoW). Before a transaction is added to the Bitcoin blockchain, nodes (powerful computers operated by people) solve complex computations to validate it. If a transaction is invalid, the nodes can reject it. Conversely, valid transactions are accepted.

    While Proof of Work (PoW) and Proof of Stake (PoS) are the most well-known consensus mechanisms, others include Delegated Proof of Stake (DPoS), Proof of Authority, Proof of Activity, Proof of Capacity, Proof of Burn, and Proof of Elapsed Time.
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