Blockchain Basics · One-hour track · Step 5/6

What Is Consensus?

How a decentralized network decides which blocks become shared history

From Blocks to Agreement

Blocks organize transactions into ordered updates, but ordering alone does not create agreement. In a decentralized network, different participants may see different valid blocks at the same time. To decide which competing blocks become the shared history everyone relies on, the network needs a common decision process. That process is called consensus.

The Agreement Problem

Competing views of recent blockchain history
Which history wins?
In a blockchain network, there is no central authority that declares what the official history is. Each node receives blocks from different peers, at different times, and sometimes in different orders. As a result, two honest nodes can temporarily disagree about which block came next, even though both are following the same rules. The core challenge is not producing blocks. It is deciding which version of recent history the network should treat as the shared one. Without consensus, a blockchain would not be a ledger at all — it would be a collection of incompatible opinions.

Why Blocks Alone Are Not Enough

Multiple competing next blocks
Competing next blocks
Blocks group and order transactions, but they do not automatically resolve disagreements. Different participants can propose different valid next blocks at roughly the same time. From a local point of view, each of these blocks may look acceptable. Without a shared rule, accepting every valid-looking block would fragment history. Consensus provides the shared rule that determines which blocks become part of the blockchain and which ones are set aside.

What Consensus Actually Does

TL;DR

  • Consensus decides which block the network should treat as the next step in shared history.
Choosing between competing blocks
How a block is chosen
Consensus answers one question: which block should the network build on next? At a high level, consensus defines how nodes evaluate competing blocks and decide which one to build on next. Each node independently applies the same rules when updating its view of the chain. When disagreements occur, consensus rules guide nodes back toward a common history. Over time, one sequence of blocks emerges as the main chain that most participants recognize and extend. Consensus does not require direct coordination or global voting. Agreement emerges because all participants follow the same rules and repeatedly make compatible decisions.

Why Consensus Matters

  • It turns many local views of recent blocks into one shared sequence the network treats as history.
  • It keeps balances and transaction outcomes consistent, so the same transaction is not accepted in one place and rejected in another.
  • It allows independent participants to cooperate without trusting a single central controller.
  • It provides a clear answer to what counts as the blockchain at any moment.
  • It lets the system move forward block by block instead of fragmenting into disagreement.

Pro Tip:Without consensus, a blockchain could create blocks but would never agree on which ones matter.

What Consensus Guarantees (High-Level)

Key facts

One main history
The system is designed so that, over time, nodes align on a single main chain rather than many competing versions.
Eventual agreement
Even if nodes briefly disagree about recent blocks, following the same rules brings them back into alignment.
Increasing resistance to change
As more blocks are added on top of earlier ones, rewriting past history becomes increasingly difficult in practice.
History converging over time
History that settles
These guarantees describe how the system behaves over time, not instant certainty. Consensus is about convergence toward a shared view, not about making immediate promises.

What Consensus Does NOT Guarantee

  • Consensus does not guarantee instant agreement across the entire network.
  • Consensus does not make blocks immediately permanent the moment they appear.
  • Consensus does not judge whether real-world information is true; it only agrees on data that follows the rules.
  • Consensus does not control transaction speed or fees.
  • Consensus does not eliminate all temporary forks or disagreements.
Consensus determines which blocks are treated as history. Final confidence about that history is explained by confirmations and finality, which build on top of consensus decisions.

The Mental Model

You can think of consensus as the process that turns many competing drafts of recent history into one story the network agrees to tell. Nodes may briefly disagree about the latest events, but consensus rules guide them toward the same version over time.
  • Consensus chooses which block is next.
  • It resolves temporary disagreements about recent blocks.
  • It produces one main chain that the network extends.
  • It does not make blocks instantly final.

From Agreement to Confidence

Confidence growing as blocks are added
Confidence grows with depth
Consensus explains how the network agrees on which blocks count. The next question is how confident participants should be that this agreement will not change. As more blocks are added on top of a chosen block, confidence in that decision increases. This leads directly to the ideas of confirmations and finality.

FAQ — What Is Consensus?

Next in the One-hour Overview

→ Confirmations & Finality
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