How do public blockchains arrive at consensus?

Most public blockchains arrive at consensus by either a proof-of-work or proof-of-stake system. In a proof-of-work system, the first node, or participant, to verify a new data addition or transaction on the digital ledger receives a certain number of tokens as a reward.

How will Blockchain Change the world?

And the friction of the transaction is reduced, resulting in cost and time savings. Using a blockchain can also reduce the cost of running a secure network. This will happen over a longer timeline, Catalini says, perhaps a decade. The internet has already allowed for a faster, less stilted exchange of goods and services.

How do blockchain nodes arrive at consensus?

There are two ways blockchain nodes arrive at a consensus: through private blockchains, where trusted corporations are the gatekeepers of changes or additions to the blockchain, or through public, mass-market blockchains. Most public blockchains arrive at consensus by either a proof-of-work or proof-of-stake system.