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Crypto Terms:  Letter D
Jul 07, 2023 |
updated: Apr 02, 2024

What is Distributed Consensus?

Distributed Consensus Meaning:
Distributed Consensus - is a group agreement that is completed by nodes in a particular network.
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Let's find out Distributed Consensus meaning, definition in crypto, what is Distributed Consensus, and all other detailed facts.

Distributed consensus is essential for the operations of a machine or network in a decentralized way.

Even if reaching a consensus between two parties is simple and clear, as the number of participants rises, reaching a consensus gets more complex. To collaborate on a shared purpose, all nodes on a network must agree on a "single source of truth."

The “single source of truth” means that they require to be sure that the data they are receiving is accurate, even in the scenario where several other nodes on the network break down.

The bulk of distributed consensus techniques has the same basic features. For starters, they are centered on a stake, which refers to a few stores of value that a candidate is putting up, such as particular currencies or computer capacity. 

They also include a reward for validating, or mining, a block, which is often in the shape of a coin unique to the blockchain in the discussion.

Proof-of-work is fundamental for blockchain-based consensus and keeps the foundation of the Bitcoin blockchain, on which new blocks are being mined. Nonetheless, a few additional consensus mechanisms exist and are being utilized on different blockchain projects.

These projects include proof-of-stake, which is now getting more and more widely adopted.

Each node in the network, or participant in the Bitcoin blockchain, for example, must have an exact duplicate of the ledger as well as a consensus that the edition of the ledger maintained by each node is correct. Blockchain initiatives use distributed consensus techniques to do this.

As envisioned and created by Satoshi Nakamoto, the inventor of Bitcoin, consensus, and collaboration on the Bitcoin blockchain are accomplished by proof-of-work. Proof-of-stake and delegated proof-of-stake are two further consensus methods.