Nakamoto Consensus

Nakamoto Consensus is the method used in cryptocurrencies like Bitcoin to achieve agreement among participants on the state of the blockchain, a shared digital ledger. Instead of relying on a central authority, it uses a decentralized system where participants, called miners, compete to solve complex mathematical problems. The first to solve the problem gets to add a new block of transactions to the chain and is rewarded with cryptocurrency. This process helps secure the network and prevents fraud, ensuring that everyone has a consistent view of the blockchain while allowing for independence and trust among users.