Consensus mechanisms are the backbone of any blockchain network, ensuring all nodes agree on the validity of transactions. The two most prominent mechanisms are Proof of Work (PoW) and Proof of Stake (PoS).
Proof of Work (PoW)
Miners solve complex mathematical puzzles to validate transactions and secure the network. While exceptionally secure, PoW requires significant computational power and energy consumption.
Proof of Stake (PoS)
Validators stake their own tokens as collateral to create and validate new blocks. PoS reduces energy consumption by over 99% while offering higher transaction throughput.