A consensus algorithm is a process in computer science used to achieve agreement on a single data value among distributed processes or systems. Consensus algorithms are designed to achieve reliability in a network involving multiple unreliable nodes. As a result, consensus algorithms must be fault-tolerant. Lets review some of the most popular algos:
PROOF OF WORK (PoW)
A proof of work is a piece of data which is difficult (costly, time-consuming) to produce but easy for others to verify and which satisfies certain requirements. Producing a proof of work can be a random process with low probability so that a lot of trial and error is required on average before a valid proof of work is generated.
Bitcoin uses the Hashcash proof of work system.… Read more...