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Technology term

Consensus

How a distributed network agrees on which transactions are valid and in what order.

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By the Orca Crypto teamUpdated 2026-09-28How we check this3 min readDefinition
Definition

How a distributed network agrees on which transactions are valid and in what order.

Consensus is the mechanism that lets thousands of independent computers agree without a coordinator. It answers who gets to add the next block and how disagreements resolve.

Proof of work spends electricity to make attacks expensive. Proof of stake requires capital at risk instead. Both make dishonesty cost more than it pays.

In practice

Bitcoin uses proof of work. Ethereum switched to proof of stake in 2022, cutting energy use by more than 99 percent.

What people get wrong

That consensus means everyone agrees. It means the network converges on one history despite some participants being absent, slow or hostile. Disagreement is assumed; the algorithm is the part that resolves it.

Common questions

What happens if nodes disagree?
The rules decide. Nodes follow the chain with the most accumulated work or stake behind it, and the losing branch is discarded. Disagreement that persists becomes a fork.
Is consensus the same as everyone agreeing?
No. It means the network converges on one history despite some participants being offline, buggy or hostile. Tolerating bad actors is the whole design problem.

Where this comes up on the site

The guides that actually use this word, rather than a list of everything we have written.

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