How It Works
Bitcoin uses Proof of Work consensus where miners compete to solve SHA-256 cryptographic puzzles, earning block rewards for adding new blocks every ~10 minutes. The difficulty adjusts every 2,016 blocks to maintain the 10-minute target regardless of total hash rate. Transactions are verified by the global network of ~15,000 full nodes that enforce consensus rules without trusting any central authority. The UTXO model tracks unspent outputs rather than account balances, providing strong auditability and enabling Bitcoin Script for programmable conditions.
Consensus Mechanism: Proof of Work
Proof of Work consensus requires miners to expend computational energy to propose new blocks. The miner who finds a valid block hash first broadcasts it to the network and earns the block reward. This creates an objective, energy-backed security model where attacking the network costs real-world resources.
Key Architecture Facts
| Category | Layer 1 |
| Consensus | Proof of Work |
| Launched | 2009 |
| Founder | Satoshi Nakamoto |