Consensus

In this increasingly digital and globalized age, the word “consensus” is becoming more important than ever. But have you ever wondered how money, law, and even the state, as we know it, can be so widely recognized and accepted? Essentially, it’s not coercive force behind them, but a kind of - consensus.

1.1 What is Consensus?

Consensus is the state of a group of people coming to a common recognition and trust of a concept, thing or system.

It does not necessarily derive from science, nor does it rely on logical proof, but is a deeper psychological mechanism:“Because everyone believes it, it stands.”

This mechanism is not mysterious, it exists in every aspect of our lives:

• We buy things with currency because we all believe it has purchasing power;

• We stop at red lights because we all agree that traffic rules exist;

• We respect judges because we collectively accept the authority of the legal system.

These are all manifestations of consensus - through consensus, human beings build the order of society, the foundation of the economy, and the continuity of culture.

1.2 Origin of Consensus

Precipitation of Time, Casting of History Consensus is never built overnight; it requires the accumulation of time, the validation of history, and the projection of emotions.

Early human consensus may originate from beliefs, such as totem worship; later, we use language to tell stories, use words to establish contracts, and use money to exchange value … The superposition of one layer of the system allows the consensus to expand from a small scope to the entire civilization system.

Looking back at history, you will find that every “consensus” with wide influence has gone through a similar path:

1. Individual awakening: someone is always the first to see a new opportunity or a new value. 2.

2. Small Circle Recognition: Smaller communities begin to participate, spread, and reinforce the idea. 3.

3. Mainstream adoption: once it has a price tag or legal status, it may enter into a larger consensus.

4. Culturalization or institutionalization: Eventually, the perception is no longer questioned, but taken for granted.

From real estate to luxury goods, from literary works to technological innovations, from religions to nations, this pattern has never changed.

“Consensus, after a value has been formed, is the ‘layer of belief’ that in turn adds to that value.”

1.3 Consensus in cryptocurrencies: technical consensus + value consensus

In the world of cryptocurrencies, consensus is not just an abstract belief, it is also a set of strict systematic rules - the

We can divide them into two categories:

1.3.1 Consensus Mechanisms at the Technical Layer

As a decentralized system, there is no central authority responsible for bookkeeping, so there must be a mechanism for thousands of nodes around the world to agree on “who recorded the right data”.

This is called a consensus mechanism, for example:

• PoW (Proof of Work): the mechanism used by Bitcoin, which relies on arithmetic power to compete for who gets to keep track.

• PoS (Proof of Stake): used by Ether 2.0, relies on token pledges and random selection.

• Mechanisms such as DPoS, PBFT, PoA also serve different network architectures.

These technical consensus mechanisms ensure:data consistency, tamper-proofness and transaction trustworthiness for all nodes.

1.3.2 Social Consensus at the Value Layer

What is even more fascinating is that the “value” of a crypto asset is itself a consensus.

Have you ever wondered why Bitcoin is worth money?

It has no government backing, no interest income, no real assets to back it up. Yet it has become “digital gold” with a market capitalization of over a trillion dollars. That’s because, over the past decade or so, it has gradually built a cognitive consensus that transcends countries, cultures, and classes.

The process is as follows:

• At first, a few people held it because of their belief in free money;

• Later, a portion of the population followed because of its soaring price;

• Then, corporations and institutions began to enter the market, accepting it as part of their asset allocation;

• Finally, the media, academics, and governments began to discuss it, further increasing its “legitimacy” and “consensus status”.

The price of Bitcoin is not determined by supply and demand alone, but is also woven together by human identification, trust and future expectations.

1.4 The Underlying Dynamics of Consensus: Emotional Value + Time Proofing

What really builds broad consensus is not just cold numbers or parameters, but human emotions, memories and sense of meaning.

A song, a movie, a painting may be worth more than its “cost” in the minds of a certain generation. Similarly, a house, a NFT, or a Bitcoin may become a spiritual anchor for people because of a sense of “participation”, “identity”, or “symbol of freedom”.

This value, not necessarily rational, but real.

“When an asset, culture, or even idea, evokes deep emotions, it has a chance of creating a lasting consensus.”

1.5 Conclusion: consensus is not the end, but the beginning

We often say that “consensus is king”, but it’s more accurate to say that - real value must be believed in before it can happen.

In the cryptocurrency space, we not only need to build a technical consensus mechanism, but more importantly, how to build a broader social consensus, which involves trust, culture, narrative and institutions.

The world of the future may no longer be dominated by a particular country, bank or giant, but by one decentralized system that is believed in and maintained by users around the globe. Behind these systems, it is not a particular company that runs them, but the consensus that runs them.

The last sentence summarizes: Consensus, is an extension of trust, a result of culture, and an amplifier of value. Mastering consensus is mastering the cornerstone of the future digital civilization.