LeoGlossary: Consensus

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How to get a Hive Account

The algorithm by which transactions are verified on a blockchain. This can be Proof-of-Work (PoW), Proof-of-Authority (PoA), or Proof-of-Stake (PoS).

Consensus is the main reason for the banking system. With financial transactions, it is important there be agreement of balances and what money was directed where.

Cryptocurrency replaces the need for 3rd party entities to perform this task since it relies upon the blockchain to serve this purpose.

With the blockchain maintaining the ledger, the wallet can fulfill the purpose of allowing users to send, receive, and store their coins or tokens.


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