Distributed Algorithm

Definition ∞ A distributed algorithm is a computational process executed across multiple independent computing nodes that communicate with each other to achieve a common goal. In blockchain, these algorithms are fundamental for tasks such as reaching consensus on transaction order, validating new blocks, and maintaining the shared ledger. They are designed to operate reliably even when some nodes fail or act maliciously. This approach enhances system resilience and fault tolerance.
Context ∞ Distributed algorithms are the backbone of all blockchain networks, with news often highlighting advancements or challenges in consensus mechanisms like Proof of Work or Proof of Stake. Debates often concern the scalability, security, and energy consumption trade-offs of different algorithmic designs. Researchers are constantly working on new distributed algorithms to improve network performance and reduce latency for digital asset transactions.