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Consensus Mechanism (Cryptocurrency)
A consensus mechanism is a fault-tolerant mechanism that is used in computer and blockchain systems to achieve the necessary agreement on a single data value or a single state of the network among distributed processes or multi-agent systems, such as with cryptocurrencies. It is useful in record-keeping, among other things.
A consensus mechanism is a system that cryptocurrencies like Bitcoin and Ethereum use to validate the authenticity of transactions and maintain the security of the underlying blockchain. This system ensures that all legitimate transactions are recorded on the blockchain and that each copy of the blockchain contains all valid transactions.