#explain-card [[Consensus]] in the context of cryptocurrency refers to the process used to achieve agreement on a single data value or a single state of the network among distributed processes or systems. It is essential for ensuring the integrity and security of the blockchain. Common consensus mechanisms include [[Proof of work|Proof of Work]] (PoW), [[Proof of stake|Proof of Stake]] (PoS), and Delegated Proof of Stake (DPoS). - Proof of Work (PoW): Requires participants to solve complex mathematical problems to validate transactions and create new [[Block|blocks]]. - Proof of Stake (PoS): [[Validator|Validators]] are chosen based on the number of tokens they hold and are willing to "stake" as collateral. - Delegated Proof of Stake (DPoS): Token holders vote for a small number of delegates who will validate transactions and create new blocks. Each mechanism has its own advantages and trade-offs in terms of security, decentralization, and energy efficiency.