Post
Topic
Board Development & Technical Discussion
Merits 7 from 5 users
The meaning of the word “consensus” in the context of Bitcoin
by
nullius
on 26/03/2021, 09:39:02 UTC
⭐ Merited by Carlton Banks (3) ,BlackHatCoiner (1) ,Rizzrack (1) ,Heisenberg_Hunter (1) ,d5000 (1)
There is hereby a failure of human language usage:  The word “consensus” is overloaded.

In Bitcoin, the word “consensus” has the very specific technical meaning.  It does not refer to an agreement amongst humans, as in colloquial usage.  Rather, it denotes the resolution of a synchronized state in a distributed system.

Compare other distributed consensus protocols such as Paxos (the Lamport consensus protocol, not the blockchain company).

In Bitcoin, the consensus means that all nodes arrive at the exact same conclusions about the current global state of the blockchain ledger:  The set of valid transactions that exist, the meaning of each of those transactions, and the order of those transactions.  It means that if Alice sends two transactions that attempt to spend the same coin, then every (honest) node in the world automagically agrees on the decision of which of the two transactions is valid, and which is invalid as a double-spend.  It means that if Mallory mines a block that violates consensus rules, all (honest) nodes file the block in /dev/null as if it never existed—regardless of the POW shown in its block header.  Etc...

The Bitcoin ledger is a single global truth.  Mutually untrusting nodes agree on this one truth, with no centralized authority.  The only information available to each node is a bunch of blobs of data that it receives from anonymous, potentially hostile parties.  And—the whole thing works!  It is so secure that the network can be trusted with a trillion dollars worth of total value.

That is the meaning of the Nakamoto Consensus.