Thread by @OwlExplains

What is a #consensus mechanism?

Quick 🦉 fact before we dive in..

Did you know that the collective noun for a group of owls is a ‘Parliament’?

This is a great starting point to understanding #consensus mechanisms on a #blockchain

1/ A #consensus mechanism on #blockchain is the process by which participants ‘agree’.

A bit like #voting in a #parliament.

This simple diagram describes the basic process:

2/ #consensus is critical to #blockchain because it determines how #data is added to the #database - that is, how the next #block is added to the chain, which as we explained last week is secured by #encryption

Different #blockchains use different methods to reach #consensus - just as there are different ways to #vote in a democracy - eg a referendum offers everyone a say - while in a representative democracy voters select individuals to decide on their behalf

Why is this important to understand?

Because the consensus mechanism is an essential component of the (more) #decentralised vision for #web3 which #blockchain enables where #data is not held by one central authority that is subject to attack or corruption.

Instead, by enabling varying degrees of #decentralised decision making that users can #trust, #consensus mechanisms prevent malicious actors manipulating or corrupting the #database, so preserving the #integrity of the blockchain and the interests of the participants.

Just like a well functioning #parliament 🦉 🦉 🦉

Stay tuned as we explore #consensus mechanisms that use proof of work (PoW) and proof of stake (PoS)