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.