Introduction to blockchain consensus algorithms

What is Blockchain

A blockchain is a record of digital transactions. It is a distributed software network which can function both as a digital ledger and as a mechanism allowing the secure transfer of assets without an intermediary party. It is the technology that allows exchanging the units of value digitally. 

Blockchain makes a record of each transaction and each transaction is secured by a digital signature. Every time when a transaction is completed, it generates a hash for the transaction. Hash of the previous transaction is used for generating the hash for a newer transaction. Even a small change in transaction can result in creating a completely new hash. Each transaction is registered in order in which they occur based on the consensus algorithm in use.

Consensus Algorithm

None of the transactions in the blockchain is verified by central authority but every transaction is completely secured and verified. This is possible due to consensus algorithms. 

It is through a consensus algorithm that each node verifies the authenticity of the new entry which is to be added in the blockchain ledger. Using consensus algorithms each node reaches a common agreement on the authenticity of any transaction and once the

Read More: