Web Trader MT5
Distributed consensus is the process by which a network of independent people, without a central authority, agrees on a single version of the truth. This is the system that determines which transactions are valid and which ledger version is correct in blockchain networks. There is no central server holding the official record; the network has to agree.
This is achieved using consensus techniques such as proof of work or proof of stake.
Everybody follows the same rules, validates transactions, and confirms them by consensus. The beauty of distributed consensus is that it makes the system tamper resilient. It becomes too expensive at scale to get the majority of the network to switch a historical record simultaneously.
Example: When a bitcoin transaction is sent to the network, thousands of nodes independently validate it against the same criteria. When enough of them agree that it is valid and it is included in a confirmed block, that transaction is essentially settled. Not because some authority said it is, but because the network reached consensus.
