If a blockchain has no central authority, what’s the process for recording transactions or updating code? In this Stronghold 101 episode, Stronghold CTO and Co-founder Sean Bennett give a quick explanation of how governance and consensus mechanisms keep a blockchain network up and running.
Some blockchain networks have “on-chain governance,” a system for managing and making changes to cryptocurrency blockchains. The rules of how to institute those changes are encoded into the blockchain protocol.
Another key function of governance is the “consensus mechanism,” the continual process of validating information going onto an immutable record. Consensus mechanisms determine who gets to validate and broadcast new information going onto a blockchain, and it incentivizes participants to serve as reliable validators and establishes security and trust in how the network operates.
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Stronghold is a payments infrastructure company with a mission to provide fast, secure, and accessible financial services for all. Through our developer APIs, we enable access to legacy and next-generation financial services.
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