Consensus Algorithms

Definition ∞ Consensus algorithms are the fundamental rules governing how distributed ledger systems agree on the validity of transactions and the state of the ledger. These protocols ensure that all participants in a network reach a common understanding without relying on a central authority. Examples include Proof-of-Work and Proof-of-Stake, each with distinct mechanisms for achieving distributed agreement and securing the network against malicious actors. The selection and implementation of a consensus algorithm significantly influence a blockchain’s performance, scalability, and security characteristics.
Context ∞ The discourse surrounding consensus algorithms frequently involves debates about energy consumption, transaction throughput, and decentralization levels. News reports often highlight protocol changes or new implementations designed to enhance efficiency, such as the transition of major networks to Proof-of-Stake or the development of hybrid models. The security implications of various consensus mechanisms, particularly in the face of evolving attack vectors, remain a critical area of focus for developers and observers alike.