Nakamoto Consensus

What is Nakamoto Consensus?

Satoshi Nakamoto created a consensus technique to address the scalability concerns of Classical consensus. Nakamoto consensus is a BFT model that favors decentralization and security in peer-to-peer networks with thousands of nodes. The Proof-of-Work feature of the paradigm eliminates communication overhead.

All the nodes must work together to solve difficult mathematical puzzles as part of proof-of-work, which uses a lot of energy. It has a low throughput and a very long time to conclusion. A new block is created every 10 minutes in the case of Bitcoin by design. It's advisable to wait three to six block confirmations, or 30 to 60 minutes, before assuming that a transaction has been completed. A transaction is deemed final in classical consensus systems in a matter of seconds.