Blockchain & Cryptocurrency Glossary

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Social Consensus

1 min read
Pronunciation
[soh-shuhl kon-sen-suhs]
Analogy
Imagine a country has a constitution and laws (algorithmic consensus) that dictate how the government operates daily. However, if there's a major crisis, a deep disagreement about interpreting the constitution, or a proposal to fundamentally change it, the ultimate decision often comes down to public opinion, debates among leaders, and what the broader society is willing to accept or support (social consensus). This human layer can override or steer the formal rules.
Definition
The agreement among the community of users, developers, and stakeholders of a blockchain network regarding its rules, direction, and the validity of its state. While algorithmic consensus (e.g., PoW, PoS) handles automated agreement on transaction order, social consensus represents the higher-level human agreement that gives the algorithmic consensus legitimacy and guides responses to critical events or contentious upgrades.
Key Points Intro
Social consensus is the human layer of agreement that underpins and can ultimately direct a blockchain's technical consensus.
Key Points

Represents the collective agreement of a blockchain's community.

Plays a crucial role in decisions about hard forks, protocol upgrades, or responses to major crises (e.g., large-scale hacks).

It's not an automated process but emerges from discussions, debates, community sentiment, and developer/miner/validator signaling.

Can be seen as the ultimate arbiter of a blockchain's 'true' state or rules, especially in contentious situations.

Example
The Ethereum community's decision to hard fork after The DAO hack in 2016, creating Ethereum (ETH) and Ethereum Classic (ETC), was a result of social consensus. A majority of the community agreed to roll back the chain to recover funds, even though it violated the principle of immutability for some. This decision was not dictated by the PoW algorithm alone but by community agreement.
Technical Deep Dive
Social consensus operates outside the strict rules of the blockchain protocol itself. It involves communication channels like forums, social media, developer mailing lists, and conferences. Key influencers, core developers, major businesses, miners/validators, and large token holders often play significant roles in shaping social consensus. While algorithmic consensus provides technical finality, social consensus provides legitimacy. If a significant portion of the community rejects a chain, even if it's technically valid by the old rules, that chain may lose value and relevance.
Caveat
Achieving clear social consensus can be slow, messy, and contentious, especially in large, decentralized communities. It can also be influenced by powerful actors or misinformation. There's no formal algorithm for social consensus, making its outcomes sometimes unpredictable.

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