Consensus Mechanism
The algorithmic protocol by which a distributed blockchain network agrees on the valid state of the ledger without relying on a central authority.
In-Depth Explanation
Consensus ensures all independent nodes agree on valid transactions and balances. Popular mechanisms include Proof of Work and Proof of Stake.
Practical Market Example
Real-World Application
Bitcoin nodes reach consensus on valid blocks via Proof-of-Work SHA-256 computation.