For a decentralized network to work, everyone must agree on the state of the ledger without a central boss. This is achieved through Consensus Mechanisms managed by nodes.
Nodes are individual computers that run the blockchain software, keeping a full history of transactions. To add a new block, nodes must agree it is valid.
- Proof of Work (PoW): Nodes (miners) solve complex puzzles to secure the network.
- Proof of Stake (PoS): Participants “stake” their own tokens to be chosen as validators.
This distributed validation ensures that no single entity can “double spend” a digital asset or Forge a transaction. It is the collective agreement of thousands of independent participants that makes blockchain the most secure record-keeping system ever devised.