Tuesday, September 5, 2017

Bitcoin consensus and stakeholders

Bitcoin required consensus

Consensus of rules – which kind of block exists
Consensus of history
Consensus that coins are valuable – who owns the coins

These consensuses provide incentives for bitcoins mining. Bitcoin relies on consensus, it relies on agreement by the participants and that that consensus is a fragile and interdependent thing.

Who are the stakeholders?

Miners write history, make the blocks, record transactions. Investors decide if the bitcoin has any value. Merchants and users influence its acceptance.