How Bitcoin Achieves Consensus: From Transactions to a Shared Blockchain
Bitcoin's core innovation is enabling thousands of uncoordinated strangers to agree on a single shared transaction history without any central authority. Each network node maintains a mempool of validated but unconfirmed transactions, while mining nodes assemble these into candidate blocks and compete to add them to the chain. Block headers are kept at just 80 bytes and use a Merkle tree structure to compactly represent all transactions, allowing lightweight clients to verify payments without downloading the full blockchain. A block is only accepted if its double-SHA256 hash falls below a network-wide difficulty target, making valid blocks hard to produce but easy to verify — a deliberate asymmetry that deters spam and manipulation. The difficulty target adjusts automatically every 2,016 blocks to maintain an average 10-minute block interval, ensuring the network self-regulates as more miners join or leave.
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