LBRY uses proof of work as a consensus mechanism, the same way that Bitcoin does.
LBRY has differences in hash function, block targeting, and difficulty adjustment.
Hash Mechanism
intermediate = sha512(sha256(sha256(data))) # compute the sha512() of the double-sha256() of the data
left = ripemd(intermediate[:len(intermediate)/2]) # separately ripemd160 the left half
right = ripemd(intermediate[len(intermediate)/2:]) # and the right half
proof = sha256(sha256(left + right)) # concatenate the two halves, and double-sha256() it again
Block Targeting & Difficulty Adjustment
The targeted time of each LBRY block is 2.5 mintues (150 seconds). More information and links to source code here.