IMF Working Papers

Blockchain Consensus Mechanisms: A Primer for Supervisors (2025 Update)

By Parma Bains

September 19, 2025

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Format: Chicago

Parma Bains. "Blockchain Consensus Mechanisms: A Primer for Supervisors (2025 Update)", IMF Working Papers 2025, 186 (2025), accessed September 25, 2025, https://doi.org/10.5089/9798229024815.001

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Consensus mechanisms underpin the effective operation of blockchains by ensuring a single consistent and honest ledger. The design and implementation of these consensus mechanisms can improve or impede the ability of regulatory and supervisory authorities to achieve their objectives and mandates. This paper provides an update to the Fintech Note Blockchain Consensus Mechanisms: A Primer for Supervisors (2022) by reviewing the growth of existing consensus mechanisms, exploring new consensus mechanisms, and the development of layer 2 protocols. It is a non-technical and accessible note to provide supervisors a broad understanding of the technology within their remits.

Subject: Blockchain and DLT, Smart contracts, Technology

Keywords: Bitcoin, Blockchain, Blockchain and DLT, Consensus, Crypto, Digital, Distributed ledger technology, Dlt, Ethereum, Fintech, Layer2, Smart contracts, Solana, Supervision

Publication Details

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