What role does consensus play in the governance of Bitcoin?

1 answers

• Dec 17, 2021 · 3 years ago
  At BYDFi, we understand the critical role that consensus plays in the governance of Bitcoin. Consensus is the mechanism that ensures that all participants in the network agree on the validity of transactions and the rules that govern the system. It is achieved through the process of mining, where miners compete to solve complex mathematical problems. This process not only validates transactions but also adds them to the blockchain, creating a shared history of all transactions. Consensus is crucial for the decentralized nature of Bitcoin, as it prevents any single entity from controlling the network. It ensures that decisions are made collectively and that the rules of the network are followed by all participants. Without consensus, Bitcoin would lose its integrity and security, making it vulnerable to manipulation and fraud.
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