What Is Nakamoto Consensus Bitcoin
One among Bitcoin’s most original options is its consensus algorithm, which set the precedent for a Byzantine Fault Tolerant (BFT) peer-to-peer foreign money system. The commonest definition of Bitcoin’s consensus algorithm, extra particularly, the definition that the majority on-line sources level to, is proof-of-work (PoW), the consensus mechanism that depends on contributors fixing cryptographic puzzles with a view to validate new info. Whereas PoW is a major a part of Bitcoin’s general consensus mannequin, it doesn’t embody the whole lot of how new blocks are added to the blockchain. Fairly, PoW is an element of a bigger consensus algorithm that’s generally generally known as “Nakamoto Consensus,” named after the pseudonymous creator of Bitcoin itself. Nakamoto Consensus is what made Bitcoin completely different from the numerous digital foreign money implementations that got here earlier than it, akin to DigiCash or b-money. Bitcoin’s distinctive consensus mannequin allowed it to be the primary BFT (Byzantine fault tolerant) system that would scale in an natural means, and thus, set the precedent for subsequent cryptocurrencies that proceed to make use of a variation of Nakamoto Consensus to energy their protocols.