docs(consensus): enhance README with comprehensive module documentation (#25300)

Co-authored-by: Tyler <48813565+technicallyty@users.noreply.github.com>

x/consensus/README.md

@@ -4,4 +4,84 @@ sidebar_position: 1
 
 # `x/consensus`
 
-Functionality to modify CometBFT's ABCI consensus params.
+The consensus module provides functionality to modify CometBFT's ABCI consensus parameters on-chain through governance proposals.
+
+## Overview
+
+This module allows authorized entities (typically governance) to update critical consensus parameters that affect blockchain performance and security without requiring a hard fork.
+
+## Key Features
+
+- **Parameter Updates**: Modify consensus parameters through governance proposals
+- **Authority Control**: Only authorized addresses can update parameters
+- **Validation**: Comprehensive parameter validation before updates
+- **ABCI Integration**: Direct integration with CometBFT consensus engine
+
+## Consensus Parameters
+
+The module manages the following CometBFT consensus parameters:
+
+### Block Parameters
+- `MaxBytes`: Maximum block size in bytes
+- `MaxGas`: Maximum gas per block
+
+### Evidence Parameters
+- `MaxAgeNumBlocks`: Maximum age of evidence in blocks
+- `MaxAgeDuration`: Maximum age of evidence in time
+- `MaxBytes`: Maximum evidence size in bytes
+
+### Validator Parameters
+- `PubKeyTypes`: Supported public key types for validators
+
+### ABCI Parameters
+- `VoteExtensionsEnableHeight`: Height at which vote extensions are enabled
+
+## Usage
+
+### Governance Proposal
+
+To update consensus parameters, submit a governance proposal with `MsgUpdateParams`:
+
+```go
+import (
+    "time"
+    govtypes "github.com/cosmos/cosmos-sdk/x/gov/types"
+    authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
+)
+
+msg := &types.MsgUpdateParams{
+    Authority: authtypes.NewModuleAddress(govtypes.ModuleName).String(), // governance authority
+    Block: &types.BlockParams{
+        MaxBytes: 22020096,
+        MaxGas:   10000000,
+    },
+    Evidence: &types.EvidenceParams{
+        MaxAgeNumBlocks: 100000,
+        MaxAgeDuration:  48 * time.Hour,
+        MaxBytes:        1048576,
+    },
+    Validator: &types.ValidatorParams{
+        PubKeyTypes: []string{"ed25519"},
+    },
+}
+```
+
+### Query Parameters
+
+Retrieve current consensus parameters:
+
+```bash
+<appd> q consensus params
+```
+
+## Architecture
+
+- **Keeper**: Manages parameter storage and validation
+- **Types**: Defines message types and parameter structures
+- **Module**: Integrates with the Cosmos SDK application lifecycle
+
+## Security
+
+- Only the designated authority can update parameters
+- All parameter changes are validated before application
+- Updates are subject to governance approval process