Nakamoto Consensus
A probabilistic consensus mechanism using proof-of-work where the longest valid chain is considered authoritative.
Nakamoto Consensus is the mechanism introduced by Bitcoin where nodes consider the chain with the most cumulative proof-of-work to be the valid one. Miners bundle transactions into blocks and compete via proof-of-work; the chain that grows the fastest (by accumulated work) becomes the network’s authoritative history.
Finality is probabilistic—each additional confirmation exponentially reduces the chance of a reorg replacing a transaction. High-value transfers often wait for more confirmations as a risk mitigation.
Security assumes no attacker controls a majority of hash rate. Difficulty adjustment keeps average block time stable even as hash power fluctuates, maintaining predictable confirmation cadence.
Related terms
4 linkedExplore connected entries beyond the alphabetical index.
Proof of Work (PoW)
→A consensus algorithm where computing power is used to solve complex problems, verify transactions, and create new blocks.
Block
→A batch of valid transactions added to a blockchain, linked to the previous block by a cryptographic hash.
Difficulty Adjustment Algorithm (DAA)
→A DAA is the consensus rule that recalibrates mining difficulty so average block time stays near target as hash rate changes.
Finality
→Finality is the point at which a transaction is considered irreversible or economically impractical to revert.
All terms and definitions may update as the Cryptionary improves.
