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Digital assets

Consensus mechanism

Also called Proof of work or Proof of stake

The method a blockchain uses to agree which transactions are valid.

How it works

Proof of work requires computers to solve costly puzzles, making attacks expensive but consuming substantial energy. Proof of stake requires validators to post the network’s own token as collateral, which is forfeited for misbehaviour.

The choice determines the network’s energy use, its security assumptions, and how ownership concentrates.

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