which consensus mechanism does bitcoin use
Which consensus mechanism does Bitcoin use?
Answer: Bitcoin uses a consensus mechanism known as Proof of Work (PoW). In PoW, network participants, called “miners,” compete to solve complex mathematical problems. Solving these problems requires significant computational power and energy. Once a miner successfully solves a problem, they add a new block of transactions to the blockchain, and the network rewards them with new bitcoins. This mechanism secures the network by making it costly to alter any part of the blockchain, as doing so would require redoing the PoW for every subsequent block.
How Proof of Work Functions:
- Transaction Bundling: Transactions are collected into a block.
- Problem Solving: Miners compete to solve a cryptographic puzzle. This involves finding a nonce (a random number) that, when hashed with the block’s data, produces a hash that is below a certain target threshold.
- Verification: Other miners verify the solution quickly.
- Block Addition: Once verified, the block is added to the blockchain, and the miner receives a reward.
- Difficulty Adjustment: The network adjusts the difficulty of the puzzle approximately every two weeks to ensure blocks are mined roughly every 10 minutes.
Summary: Bitcoin employs the Proof of Work mechanism to maintain a decentralized consensus across the network. This method ensures the integrity and security of transactions while making it difficult for malicious actors to alter the blockchain. @anonymous4