Consensus protocol is a set of rules that ensure all participants in a network agree on the validity of transactions. In cryptocurrency, consensus protocols are essential for maintaining the integrity of the blockchain.
There are different types of consensus protocols, such as Proof of Work (PoW) and Proof of Stake (PoS). PoW requires participants to solve complex mathematical puzzles to validate transactions and create new blocks, while PoS selects validators based on the amount of coins they hold.
Consensus protocols prevent double spending and ensure that all transactions are legitimate. They help in creating trust among network participants and guarantee that the blockchain remains secure and decentralized.
Overall, consensus protocols play a crucial role in the functioning of cryptocurrencies by establishing a common agreement on the order and validity of transactions.
