How Does the “Longest Chain Rule” Resolve Discrepancies between Full Nodes?
The longest chain rule, often referred to as the "Nakamoto Consensus," dictates that in the event of a fork or disagreement, full nodes accept the chain with the most cumulative Proof-of-Work (PoW) difficulty, which is usually the longest chain. This mechanism ensures network synchronization and prevents conflicting transaction histories from persisting.
It incentivizes miners to build on the accepted chain.
Glossar
Full Nodes
Function ⎊ Full Nodes perform the essential function of independently validating every transaction and block against the network's complete set of consensus rules, maintaining a fully synchronized copy of the entire distributed ledger.
Longest Chain
Consensus ⎊ The longest chain rule is the core mechanism for achieving consensus in Proof-of-Work systems like Bitcoin.
Network Synchronization
Resonance ⎊ Network synchronization, within cryptocurrency, options trading, and financial derivatives, denotes the alignment of distributed ledger timestamps with external market data feeds, crucial for accurate price discovery and contract execution.
Full
Capacity ⎊ Full, within cryptocurrency derivatives, often denotes the maximum notional exposure a trading system or participant can sustain, reflecting risk management protocols and margin requirements.