Transactions and consensus mechanisms

Transactions: Transactions are the data entries recorded in the blockchain. They typically represent the transfer of assets or information between participants and are the fundamental units of value or action in the blockchain.

Consensus Mechanism: This is a protocol used to achieve agreement among nodes on the state of the blockchain. Common consensus mechanisms include:

• Proof of Work (PoW): Requires nodes (miners) to solve complex mathematical problems to validate transactions and create new blocks.
• Proof of Stake (PoS): Nodes are selected to create new blocks based on the amount of cryptocurrency they hold and are willing to “stake” as collateral.
• Delegated Proof of Stake (DPoS): Stakeholders elect a small number of delegates who are responsible for validating transactions and creating blocks.
• Practical Byzantine Fault Tolerance (PBFT): Nodes reach consensus through a voting process, which is robust against a certain number of faulty or malicious nodes.