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Validation/Consensus
How it works

Validation/Consensus

Before anything is added to the shared record, participants confirm it is accurate. That confirmation process is called validation. The moment when enough participants agree is called consensus. No single party decides alone.

TradFi equivalent
In traditional finance...
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TradFi equivalent
A clearing house, except without the clearing house. Today, a central counterparty like DTCC sits between every trade, confirms both sides are legitimate, and guarantees settlement. Blockchain distributes that same confirmation function across all participants simultaneously.
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Analogy
In everyday terms...
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Analogy
Group exam grading with independent proctors. The same submission is checked by multiple independent graders, and a result only stands once enough of them agree. No single grader has final say, and disagreement triggers a re-check.
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