# Consensus

> The way a blockchain's computers agree on which transactions are valid and which version of the ledger is correct.

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Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

Consensus is the rule set that lets thousands of computers agree on a single shared history without a central referee. The two best-known kinds are proof of work and proof of stake.

A strong consensus mechanism makes it expensive to lie. That is what gives a blockchain its security and is why people pay attention to which mechanism a network uses.

## Related terms

- [Proof of Work](https://business.fudfomo.co/glossary/proof-of-work): A way to secure a blockchain by making computers do a lot of calculation. Used by Bitcoin.
- [Proof of Stake](https://business.fudfomo.co/glossary/proof-of-stake): A way to secure a blockchain using locked-up coins instead of computing power. Used by Ethereum.
- [Node](https://business.fudfomo.co/glossary/node): A computer that helps run a blockchain by storing the ledger and checking new transactions.
- [Validator](https://business.fudfomo.co/glossary/validator): A participant in a proof-of-stake network who proposes and confirms new blocks. Earns rewards and can be slashed.

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