What is Consensus Mechanism?
Oxford Dictionary defines ‘Consensus’ as ‘A general agreement’. Consensus decision-making is a group decision-making process in which group members develop, and agree to support a decision in the best interest of the whole.
A method by which consensus decision-making is achieved is called consensus mechanism.
What are the synonyms of Consensus Mechanism?
Although there are no synonyms, the words ‘Consensus’ is interchangeably used to mean ‘Consensus Mechanism’.
What industry uses it?
What are the different types of Consensus Mechanisms?
There are a lot of different types of Consensus Mechanisms, some of the most popular ones are:
- PoW (Proof of Work) – Example – Bitcoin, Ethereum
- PoS (Proof of Stake) – Example – Peercoin
- PoI (Proof of Importance) – Example – NEM
- Hybrid Consensus Mechanism (DPoI + TaPoS) – Neuron coin
How does it work?
Consensus Mechanism is an important component in the blockchain and a hybrid consensus mechanism (DPoI + TaPoS system merges the benefits of Delegated Proof of Importance and Transactions as Proof of Stake consensus mechanism) like the one NeuronChain uses, allows for a high number of users to take part in validating transactions, while overall network performance is also tied to the proxy/delegate votes and general network activity. This results in a high level of inclusion and activity among all network participants, and supports a secure and rapid ecosystem.
Why is it important?
In the dynamically changing status of the blockchain, consensus plays an important role to ensure that all the transactions occurring on the network are genuine and all participants agree on a consensus on the status of the ledger.
Hybrid Consensus Mechanism, article.