Anybody who knows about Bitcoin and other cryptocurrencies would know that the purpose of the underlying technology, Blockchain is to record and verify the information. Bitcoin uses a proof of work mechanism, but other cryptocurrencies use varied consensus mechanisms, depending on the utility of their currency. The performance of a cryptocurrency depends on the consensus mechanism used.
So, what is a consensus mechanism? They are protocols to make sure all nodes are synchronized with each other and reach an agreement on a single data value. It is a mechanism that ensures that each player in the network has a copy of the same ledger. It is crucial for record-keeping, verification of transactions, among other things.
Not all blockchain networks can use the same consensus mechanism as different outcomes are desirable for different applications. Blockchain developers and organizations need to choose their preferred mode of blockchain consensus mechanism cautiously as, without a sturdy consensus, blockchains are at risk of various attacks.
Let us explore few types of blockchain consensus mechanisms:
1. Proof of Work: