Consensus Algorithm

Definition ∞ A consensus algorithm is a protocol that allows a distributed network of computers to agree on the current state of a shared ledger. It ensures that all participants in a blockchain network maintain an identical and verifiable record of transactions. These algorithms are fundamental to the security and operational integrity of decentralized systems.
Context ∞ The ongoing evolution of consensus algorithms is a significant topic, with a persistent focus on the trade-offs between security, scalability, and energy efficiency. Discussions often compare proof-of-work mechanisms with newer proof-of-stake variants and their respective impacts on network performance and decentralization. The development of hybrid consensus models is an area of active research aiming to optimize these parameters.