The healthcare industry is on the brink of a transformation. With advancements in technology, the integration of artificial intelligence, and a growing emphasis on patient-centric care, the way we approach health and wellness is rapidly evolving. At the forefront of this change is blockchain technology—a system often associated with cryptocurrencies but increasingly recognized for its potential to revolutionize industries far beyond finance. By 2025, blockchain is poised to play a pivotal role in the development of personalized healthcare management systems, enabling unprecedented levels of security, interoperability, and patient empowerment.

At the heart of blockchain technology lies the block, a digital container that stores information about transactions. Think of it as a page in a ledger, recording details like:

• The sender and receiver of a transaction.

• The amount or value being transferred.

• A unique identifier called a hash, which secures and links it to other blocks.

In this guide, we’ll explain the two most prominent consensus mechanisms—Proof of Work (PoW) and Proof of Stake (PoS)—their differences, and why they matter in the blockchain world.

A consensus mechanism is the process by which a blockchain network agrees on the validity of transactions.