Proof-Of-Transfer Consensus To Deliver Tools Needed To Build New Networks On Top Of Bitcoin

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Blockchains are ordinarily distributed decentralized networks, meaning there is no central authority to verify, validate, and facilitate transactions; yet, every transaction on the blockchain is highly secured and fully verifiable. This is possible because of the underlying consensus mechanism that drives the network.

Consensus mechanisms are the backbone of almost every blockchain network that exists. They are of multiple types and are used to achieve “consensus” and establish “trust” among the network users and participants. A consensus mechanism, also known as consensus algorithm or consensus protocol, is a set of predefined rules that incentivizes network participants to verify, validate, and record transactions in a public ledger. 

While several different consensus algorithms exist, Proof-of-Work (PoW) and Proof-of-Stake (PoS) are among the most widely used mechanisms in today’s blockchain ecosystem. 

But instead of covering PoW, PoS, or other existing consensus mechanisms, take a closer look at one of the newest mechanisms called the Proof-of-Transfer (PoX) designed to add new features and functionalities to existing PoW chains. 

Blockchain consensus mechanisms rely on network participants' computational power or financial resources to function properly. For example, miners supply the required computational power that secures the Bitcoin network. Likewise, in the case of Ethereum, the network maintains its security through the financial resources provided by the network participants via staking.

By design, PoW (proof-of-work) employed by the Bitcoin network is the most secure