In Python I wouldn't use anything but the existing commonprefix function I showed in another answer, but I couldn't help to reinvent the wheel :P. This is my iterator-based approach:
>>> a = 'interspecies interstelar interstate'.split()
>>>
>>> from itertools import takewhile, chain, izip as zip, imap as map
>>> ''.join(chain(*takewhile(lambda s: len(s) == 1, map(set, zip(*a)))))
'inters'
Edit: Explanation of how this works.
zip generates tuples of elements taking one of each item of a at a time:
In [6]: list(zip(*a)) # here I use list() to expand the iterator
Out[6]:
[('i', 'i', 'i'),
('n', 'n', 'n'),
('t', 't', 't'),
('e', 'e', 'e'),
('r', 'r', 'r'),
('s', 's', 's'),
('p', 't', 't'),
('e', 'e', 'a'),
('c', 'l', 't'),
('i', 'a', 'e')]
By mapping set over these items, I get a series of unique letters:
In [7]: list(map(set, _)) # _ means the result of the last statement above
Out[7]:
[set(['i']),
set(['n']),
set(['t']),
set(['e']),
set(['r']),
set(['s']),
set(['p', 't']),
set(['a', 'e']),
set(['c', 'l', 't']),
set(['a', 'e', 'i'])]
takewhile(predicate, items) takes elements from this while the predicate is True; in this particular case, when the sets have one element, i.e. all the words have the same letter at that position:
In [8]: list(takewhile(lambda s: len(s) == 1, _))
Out[8]:
[set(['i']),
set(['n']),
set(['t']),
set(['e']),
set(['r']),
set(['s'])]
At this point we have an iterable of sets, each containing one letter of the prefix we were looking for. To construct the string, we chain them into a single iterable, from which we get the letters to join into the final string.
The magic of using iterators is that all items are generated on demand, so when takewhile stops asking for items, the zipping stops at that point and no unnecessary work is done. Each function call in my one-liner has a implicit for and an implicit break.