Distributed consensus in cryptocurrency refers to the agreement among network participants on the validity of transactions and the state of the ledger. This agreement is essential for maintaining the security and integrity of the blockchain.
In a decentralized system like a cryptocurrency network, there is no central authority to confirm transactions. Instead, participants, known as nodes, work together to validate and record transactions. Through a process called consensus mechanism, nodes in the network communicate and reach an agreement on the order and validity of transactions.
One common method of achieving distributed consensus is Proof of Work (PoW), which requires nodes to solve complex mathematical puzzles to validate transactions. Another method is Proof of Stake (PoS), where nodes are chosen to validate transactions based on the amount of cryptocurrency they hold.
By ensuring that transactions are agreed upon by a majority of participants in the network, distributed consensus prevents the double-spending problem and maintains the trustworthiness of the blockchain.
