Blockchains are decentralized entities with no centralized authority to govern them. That means it functions without the interference of a single body, although offers better supervision and control. But it certainly comes with its own set of limitations as well. For any decisions, blockchains have to come up with a general agreement (consensus) using different consensus algorithms. Consensus mechanisms allow the blockchains to function without third-party interference.
Blockchains and other distributed ledger technologies (DLT) have no centralized authority. So, adopting a method to achieve consensus in the network is crucial. It ensures that the blockchain works efficiently, and the transactions are 100% safe. Before its implementation on Bitcoin, the decentralized currency system failed to incorporate consensus in the network.
Subscribe to our newsletter for weekly updates 👇