What is Consensus Mechanism?

A consensus mechanism is a protocol or algorithm used in blockchain networks to achieve agreement on the validity and ordering of transactions. Consensus mechanisms ensure that all participants in the network reach consensus on the state of the ledger without the need for a central authority or trusted intermediary. Common consensus mechanisms include Proof of Work (PoW), Proof of Stake (PoS), Delegated Proof of Stake (DPoS), and Practical Byzantine Fault Tolerance (PBFT), each offering different trade-offs in terms of security, scalability, and decentralization.