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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