The short definition: the means through which consensus (or agreement) is reached.
A blockchain can use different mechanisms to reach an agreement, which it uses to mine new coins and secure the network. Basically in order to run the network a form of agreement has to used.
The most uses mechanisms are “proof of work” or “proof of stake”. Multiple varieties exist. Most varities are based around proof of stake, so the varities will be based on that, with an adjustment or difference.
The most secure mechanism is considered to be proof of work (like Bitcoin).
« Back to Glossary Index