What are the different types of cryptocurrency consensus mechanisms?

  • Common cryptocurrency consensus mechanisms include:
  • Proof of Work (PoW): Miners solve complex mathematical problems to verify transactions and add them to the blockchain. Bitcoin and Ethereum use PoW.
  • Proof of Stake (PoS): Validators are selected based on the amount of cryptocurrency they hold, and they are rewarded for verifying transactions.
  • Delegated Proof of Stake (DPoS): Users delegate their voting rights to elected representatives, who then validate transactions.

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