Consensus and Network Rules

9 min readarticleIncludes quiz · 2 questions

How does a decentralized network agree on what's valid? Through consensus mechanisms and network rules that all participants follow.

Consensus Rules:

  • •Valid Transactions: Must have valid signatures and sufficient balance
  • •Block Size: Maximum 1MB (or 4MB weight units with SegWit)
  • •Block Reward: Follows the halving schedule
  • •Difficulty Adjustment: Every 2016 blocks
  • •21 Million Cap: Total supply limit
  • •10 Minute Blocks: Target block time

How Consensus is Achieved:

1. Longest Chain Rule: The chain with the most accumulated work is considered valid 2. Node Validation: Every node independently verifies all rules 3. Economic Incentives: Miners are rewarded for following rules 4. Network Effect: Majority agreement creates the standard

Consensus in Action
Consensus in Action

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