Consensus Mechanism (Proof of Work):
Posted: Wed May 21, 2025 7:13 am
Immutable (Tamper-Proof): This is a core security feature. Once a transaction is recorded in a "block" and that block is added to the "chain," it is virtually impossible to alter or delete it. This is because each new block contains a cryptographic "hash" (a unique digital fingerprint) of the previous block. Changing security and commodity brokers email list any past block would require re-computing the hashes of all subsequent blocks, which would demand an impractical amount of computing power and network consensus. This makes the ledger highly resistant to fraud and manipulation.
Chained Blocks: The "blockchain" gets its name from how it's structured. Transactions are bundled together into "blocks." Once a block is filled with verified transactions and validated by the network's miners, it is added to the end of the existing chain of blocks. Each block is cryptographically linked to the one before it, forming a continuous and unbroken chain stretching back to the very first "genesis block."
New blocks are added to the chain through a process called "mining," which involves a "Proof of Work" (PoW) consensus mechanism. Miners compete to solve a complex cryptographic puzzle. The first miner to find a valid solution gets to add the next block to the chain and is rewarded with newly minted Bitcoins and transaction fees. This process ensures that all nodes on the network agree on the correct order and validity of transactions.
In essence:
The Bitcoin blockchain is the distributed, public, and cryptographically secured record-keeping system that enables Bitcoin to function as a peer-to-peer electronic cash system without the need for a central authority. It's the underlying innovation that solved the "double-spending problem" for digital currency, ensuring that a Bitcoin can only be spent once.
Chained Blocks: The "blockchain" gets its name from how it's structured. Transactions are bundled together into "blocks." Once a block is filled with verified transactions and validated by the network's miners, it is added to the end of the existing chain of blocks. Each block is cryptographically linked to the one before it, forming a continuous and unbroken chain stretching back to the very first "genesis block."
New blocks are added to the chain through a process called "mining," which involves a "Proof of Work" (PoW) consensus mechanism. Miners compete to solve a complex cryptographic puzzle. The first miner to find a valid solution gets to add the next block to the chain and is rewarded with newly minted Bitcoins and transaction fees. This process ensures that all nodes on the network agree on the correct order and validity of transactions.
In essence:
The Bitcoin blockchain is the distributed, public, and cryptographically secured record-keeping system that enables Bitcoin to function as a peer-to-peer electronic cash system without the need for a central authority. It's the underlying innovation that solved the "double-spending problem" for digital currency, ensuring that a Bitcoin can only be spent once.