Consensus algorithms like Proof of Work and Proof of Stake validate transactions on the blockchain from "summary" of Blockchain Technology Explained by Alan T. Norman
Consensus algorithms play a crucial role in validating transactions on the blockchain. These algorithms ensure that all transactions on the network are legitimate and that there is agreement among all participants on the state of the ledger. One of the most well-known consensus algorithms is Proof of Work, which is used by popular cryptocurrencies such as Bitcoin. In a Proof of Work system, miners compete to solve complex mathematical puzzles in order to validate transactions and add them to the blockchain. The first miner to solve the puzzle gets to add the next block of transactions to the chain and receives a reward in the form of new coins. This process not only validates transactions but also secures the network against potential attacks. Another consensus algorithm is Proof of Stake, which work...
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