INTRODUCTION TO CONSENSUS ALGORITHM

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A consensus algorithm is a tool that enables people or machines to work together in a distributed environment. Even if some agents fail, it must make sure that everyone in the system can agree on a single source of truth. The system must therefore be fault-tolerant.

In a centralized system, one organization controls the entire operation. Most of the time, they are free to make adjustments as they see fit because there isn't a complicated governance framework that requires several administrators to come to an agreement.

It's entirely different in a decentralized structure, though. How can we agree on the addition of new items to a distributed database, for example?

The most important development leading to blockchains was probably overcoming this obstacle in a setting where strangers don't trust one another. In this post, we'll examine how consensus algorithms are essential to the operation of distributed ledgers and cryptocurrencies.

Distributed systems cannot work without methods of reaching consensus. Many people think that using Proof of Work to allow users to concur on a common set of facts was the biggest innovation in Bitcoin.

Blockchains, which enable programmers to run code across a distributed network, as well as digital money systems are currently underpinned by consensus algorithms. They are now an essential component of blockchain technology and essential to the long-term survival of the many networks that are already operational.

Proof of Work continues to be the most popular consensus algorithm available. There hasn't yet been put forth a better, more secure alternative. However, there is a lot of work being done to develop alternatives to PoW, and in the years to come, we'll probably see more of them emerge.

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