Blockchain: Not just proof of work or proof stake, here are 7 other consensus mechanisms

cnbctv18.com:

Blockchains can be thought of as distributed ledgers that are held by multiple nodes or computers in a peer-to-peer network. All nodes in the network must validate any data recorded in the blockchain, and this is how the network becomes secure, immutable and transparent. Essentially, all nodes in the network must reach a consensus to make changes or take any read/write actions on the network.

This is the central mechanic that makes a blockchain network. All blockchains that exist now use a consensus mechanism in some way or fashion.The most popular one is the proof-of-work (PoW) consensus mechanism. It is used by the two biggest cryptocurrencies in the market, Bitcoin and Ethereum.

In PoW, nodes must solve complex computational puzzles to add new blocks in the blockchain and add transactions on the network. Nodes usually use energy-intensive computational hardware to solve these puzzles, and the first one to solve the puzzle and add blocks is rewarded in bitcoin tokens. This process is known as bitcoin mining.

PoW mining has come under significant scrutiny in the past year or so due to its energy consumption and the subsequent carbon footprint it leaves behind. This is why the Ethereum network is in the process of transitioning from the proof-of-work mechanism to proof-of-stake (PoS).The PoS consensus mechanism alleviates the energy consumption problem of PoW. In PoS, the nodes can choose to be validators who stake their crypto tokens in a shared memory pool or mempool (a pool of coins) to verify transactions in the network.