ByzCoin is a form of cryptocurrency that utilizes a Byzantine fault-tolerant consensus protocol to validate transactions and secure the network. This protocol allows ByzCoin to achieve decentralization and consensus among nodes in the network without the need for a centralized authority.

In ByzCoin, transactions are grouped into blocks and added to a distributed ledger known as the blockchain. Each block is confirmed by a consensus of nodes in the network, ensuring that all transactions are valid and secure. This consensus mechanism helps prevent fraud and double-spending within the network.

ByzCoin also features a reward system that incentivizes nodes to participate in the validation process by earning tokens for their efforts. These tokens can be used for transaction fees or exchanged for other cryptocurrencies.

Overall, ByzCoin provides a reliable and secure way to transfer value between parties in a decentralized manner, making it a popular choice among cryptocurrency enthusiasts.