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  1. Home
  2. /Glossary
  3. /Consensus Mechanism
Back to Glossary
blockchain

Consensus Mechanism

The method a blockchain uses to agree on which transactions are valid and in what order.

Definition

The method a blockchain uses to agree on which transactions are valid and in what order. Bitcoin uses proof-of-work (mining), while Ethereum switched to proof-of-stake. Different mechanisms have different tradeoffs between security, speed, and energy use.

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Related Terms

Proof of Work (PoW)

A consensus mechanism where miners solve computational puzzles to create blocks and earn rewards.

Proof of Stake (PoS)

A consensus mechanism where validators stake tokens as collateral to secure the network.

Validator

A node operator who validates transactions and creates blocks on a proof-of-stake network.

ABI

Application Binary Interface.

Account Abstraction

A way to make crypto wallets behave more like normal apps by turning every account into a smart contract.

Account Model

The way Ethereum and many other chains track balances.

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