Algorithm

An algorithm is a set of rules embedded into computer software to enable it to perform specific functions. In the crypto space, an algorithm is a set of predefined rules embedded within the computer software, allowing it to execute specific functions crucial for the operation of blockchain networks. Among these, consensus algorithms stand out for their role in ensuring all network participants agree on the validity of transactions, thereby maintaining the blockchain's integrity and security without the need for a central authority. This approach not only streamlines the process of verifying transactions but also enhances the scalability and efficiency of the network, making cryptocurrencies like Bitcoin and Ethereum possible and functional on a global scale.