Bitcoin’s decentralized consensus mechanism operates on a fundamental principle: the chain with the most computational work is deemed the correct one. This rule eliminates the need for a central authority by allowing thousands of decentralized participants to determine the correct chain based on their collective efforts. Miners are incentivized to keep the blockchain progressing while also facing opportunity costs if they don't contribute. However, if any miner or group of miners obtains over 50% of the hash rate, they can threaten the network's integrity. The system is designed to incentivize honest participation, ensuring the continued security of Bitcoin's decentralized ledger.
Bitcoin's decentralized consensus mechanism functions through incentive structures, asserting that the chain with most work done is the correct one, preventing central arbitration.
If one miner or coalition controls more than 50% of hash rate, they can manipulate the blockchain, undermining the very essence of Bitcoin's decentralized integrity.
Satoshi's design includes incentives that encourage nodes to remain honest, prioritizing profit from playing by the rules over undermining the system directly.
The effectiveness of Bitcoin's game theory hinges on having at least 50% of miners incentivized to act honestly, ensuring the integrity of the blockchain.
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