Understanding the Nakamoto Consensus

Cardano uses a variation of the Nakamoto consensus called Ouroboros. It is a Proof-of-Stake (PoS) consensus that uses the underlying principles invented by Satoshi Nakamoto for Bitcoin. Ouroboros is designed to provide similar security guarantees as Proof-of-Work (PoW) while being more energy-efficient. In the article, we will explain the basic principles of the Nakamoto consensus and highlight the differences between PoW and PoS. The focus will be on the principles and underlying mechanisms.

This article was prepared by Cardanians with support from Cexplorer.

Read the article: https://cexplorer.io/article/understanding-the-nakamoto-consensus