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Consensus Mechanism

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A consensus mechanism is the set of rules that allows all nodes in a decentralized blockchain network to agree on the state of the ledger — which transactions are valid and in what order — without trusting any central authority.

Proof of Work (PoW)

Miners compete to solve a computationally hard puzzle. The winner adds the next block and earns the block reward. Security comes from the energy cost required to rewrite the chain.

Proof of Stake (PoS)

Validators are chosen to create blocks based on the amount of cryptocurrency they lock as collateral. No energy-intensive computation required.

  • Used by: Ethereum (post-Merge), Cardano, Solana

Other mechanisms

Mechanism Description Example
Delegated PoS (DPoS) Token holders vote for validators BNB Smart Chain
Proof of Authority (PoA) Known, trusted validators Private chains

Why it matters for miners

Only Proof of Work blockchains require miners. If a coin switches from PoW to PoS (as Ethereum did in 2022), GPU and ASIC mining for that coin ends immediately.

See also