What Is Nakamoto Consensus?
Nakamoto consensus is the mechanism that allows the bitcoin network to maintain an agreement on the state of the blockchainWhat Is The Blockchain? The blockchain is the public record of bitcoin transactions, which are organized into blocks that are all chronologically linked to one another. Because every block is....
It is named after Satoshi NakamotoWho Is Satoshi Nakamoto? Satoshi Nakamoto is the creator of Bitcoin and the first user of the original Bitcoin client. He has said in a P2P foundation profile that he..., the pseudonymous creator of Bitcoin.
Under Nakamoto consensus, participants reach consensus by competing to solve a proof-of-work math equation. The participant who solves the equation first broadcasts their solution to a bitcoin nodeWhat Is A Bitcoin Node? A bitcoin node is any computer that runs the bitcoin software, enforces the bitcoin consensus rules, and validates bitcoin transactions and blocks. Bitcoin nodes are... for verification. If it is valid, the node passes the proof of workWhat Is Proof Of Work? Proof Of Work, often abbreviated as PoW, is both the method for achieving consensus across the entire Bitcoin network as well as a piece of... to other nodes until the entire network has added the new block to the blockchain.
The basic idea behind Nakamoto consensus is that the longest chain is the valid one. This is because it represents the most proof of work that has been dedicated to that particular chain. This is necessary because, in a decentralized network, there is no central authority that can be trusted to maintain accurate records. Instead, each participant in the network must agree on the current state of the blockchain.
Nakamoto consensus is achieved through a combination of proof of work and the longest chain rule. Proof of work is used to ensure that new blocks are added to the blockchain in a tamper-proof way. The longest chain rule ensures that, even in the event of a chain split, all participants will eventually reach consensus on which chain is valid. These two mechanisms work together to allow decentralized networks to function without a central authority.
In the event of a chain split, miners will continue to work on both chains until one becomes longer than the other. At that point, they will switch to mining only the longer chain. This incentive system ensures that miners have an incentive to maintain the security of the network.
This system is designed to protect against double-spending via 51% attacksWhat Is A Bitcoin Attack? A Bitcoin attack is when someone launches any number of different cyber attacks against the Bitcoin network or its users. Some attacks are launched directly..., and it has been incredibly successful so far.