# [blockchain] Consensus algorithms

Consensus algorithms are algorithms used by a large number of participants to make unified decisions. They are also called consensus protocols.

Because blockchains store data on a large number of nodes instead of a centralized server, each node needs to mutually agree that the data it records in a block is the original, untampered with version. The process and algorithm that leads to the creation of the correct block, with multiple nodes that want to steer the network in the right direction verifying each other, is called consensus.

# **1.** Proof of Work\*\*(PoW)\*\*

It is a consensus algorithm that allows nodes with the most hashpower to create blocks during the block generation time.

The process of matching random values called nonces to generate a block is called mining, which can be understood as the computing power used to prove that the encrypted transaction information sent to the blockchain network has been captured in a new block and that the work of connecting the new block to the chain has been completed.

# **2.** Proof of Stake\*\*(PoS)\*\*

It starts with the idea that nodes have a sufficient stake in the system. Miners are paid coins in the same way as interest, and all they need to do to get rewarded is to have a wallet connected to the blockchain network that holds a certain number of coins.

# **3.** Delegated Proof of Stake\*\*(DPoS)\*\*

A concept in which each node with a stake in the system votes to delegate the validation of a transaction to another node to prove its validity. Used in EOS. A certain number of witnesses who have been delegated full authority create a block.