DLT Consensus

Definition ∞ DLT Consensus refers to the mechanism by which all participants in a Distributed Ledger Technology network agree on the validity of transactions and the correct state of the ledger. This agreement process ensures data integrity and prevents double-spending without requiring a central authority. Various algorithms, such as Proof of Work or Proof of Stake, achieve this collective verification.
Context ∞ The ongoing evolution of DLT consensus mechanisms is a prominent area of research and development, with discussions often focusing on scalability, energy efficiency, and security trade-offs. Debates around different consensus protocols frequently highlight their respective strengths and weaknesses in achieving decentralization and resistance to attack. Regulatory bodies are also examining consensus models to understand their implications for market stability.