How does the network agree? (Consensus Mechanism)
Have you ever asked yourself: if there is no central bank, who says that this transfer is "correct" and not counterfeit? 🤔
Here comes the role of the "consensus mechanism".
This is the way network devices (Nodes) agree on the truth.
🔸 Proof of Work (PoW): like Bitcoin, devices solve difficult mathematical equations to prove that they have worked and secure the network.
🔸 Proof of Stake (PoS): like Ethereum currently, people store their coins to ensure the security of the network.
Digital democracy at its finest! 🗳️
#Consensus #POW #Pos #CryptoKnowledge🚀 #Binance
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