How Does ‘Nakamoto Consensus’ Enforce the Longest Chain Rule?
Nakamoto Consensus, the mechanism used by Bitcoin, dictates that the legitimate chain is the one with the most cumulative Proof-of-Work (the 'longest chain'). Nodes continuously verify and extend this chain.
If a fork occurs, the network will eventually follow the chain that has the most computational effort invested, effectively discarding shorter, competing chains and enforcing the history of the longest chain.
Glossar
Computational Effort
Calculation ⎊ The computational effort inherent in financial modeling, particularly within cryptocurrency derivatives, options trading, and related instruments, represents the resources ⎊ time, processing power, and specialized expertise ⎊ required to generate accurate and timely results.
Longest Chain
Consensus ⎊ The longest chain rule is the core mechanism for achieving consensus in Proof-of-Work systems like Bitcoin.