PROTOSOURCE-LED TOPIC GUIDE

How Bitcoin works: protocol, nodes and consensus

Connect transactions and UTXO with Proof of Work, Full Node checks and the rules for selecting a valid history.

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A Full Node rejects invalid blocks and follows the chain with the greatest cumulative work among known valid branches. Miners produce that work. These complementary roles can be performed by the same person. A Full Node checks blocks and spends, including signatures, issuance rules and the prohibition of double spending within the accepted history. Admission and relay policies for unconfirmed transactions can be stricter than consensus. Mempool rejection alone does not make a block invalid.

Primary sources

This overview does not replace a complete specification. Bitcoin Core v29.0 is a specific implementation example, not a claim to be the latest version. BIP141 describes SegWit changes; always check activation conditions for rule changes. Linked entries have their own sources and reviews.

A curated path from first principles to the details that matter.

01
Protocol · BTC

Bitcoin

Digital money without a central operator: a network in which anyone can transfer value and independently verify that the same rules apply to everyone.

Open entry Open source
02
Protocol · PoW

Proof of Work

The mechanism by which Bitcoin turns electricity and computing power into an easily verified proof, then uses accumulated work to order valid block history.

Open entry Open source
03
Network · NODE

Full Node

Checking Bitcoin payments and blocks yourself: what a node verifies, how a wallet uses it, and why you need neither mine nor keep every block forever.

Open entry Open source
04
Protocol · UTXO

UTXO

An individual unspent amount in Bitcoin. Why your balance can contain several of them, and what that means for payments and fees.

Open entry Open source
05
Protocol · SHA²

SHA-256

A short fingerprint can represent text, a file or a Bitcoin block header. How does it help detect changes, what are miners looking for, and why is hashing different from encryption?

Open entry Open source
06
Protocol · CORE

Bitcoin Core

Bitcoin Core is free software for running your own Bitcoin node. It lets your computer check payments and network rules independently, with or without its optional wallet.

Open entry Open source

Definitions, mechanisms, people and source data connected to this field.

BTCBitcoinProtocol · 8 §TIMETimechain / BlockchainProtocol · 8 §PoWProof of WorkProtocol · 5 §HASHMiningNetwork · 5 §NODEFull NodeNetwork · 5 §2016Difficulty AdjustmentProtocol · 3 §TXTransactionProtocol · 4 §UTXOUTXOProtocol · 4 §MEMMempoolNetwork · 4 §BLKBlockProtocol · 3 §HDRBlock HeaderProtocol · 4 §HASHHashProtocol · 5 §SHA²SHA-256Protocol · 8 §MRKLMerkle TreeProtocol · 4 §ADDRBitcoin addressProtocol · 18 §CONFConfirmationNetwork · 14 §CBTXCoinbase transactionProtocol · 12 §SCRIPTBitcoin ScriptProtocol · 11 §FORK↓Soft ForkProtocol · 20 §FORK↑Hard ForkProtocol · 6 §BIPBIP (Bitcoin Improvement Proposal)Protocol · 10 §RULESConsensus RulesProtocol · 5 §REORGReorgNetwork · 5 §STALEStale BlockNetwork · 5 §ASICASIC MinerNetwork · 11 §POOLMining PoolNetwork · 10 §H/sHashrateNetwork · 9 §NONCENonceProtocol · 10 §TIMETimelockProtocol · 12 §COREBitcoin CoreProtocol · 17 §TESTTestnetProtocol · 16 §BGPByzantine Generals ProblemProtocol · 13 §NCNakamoto ConsensusProtocol · 9 §PROPBlock PropagationNetwork · 9 §CMPCTCompact BlocksNetwork · 8 §IBDInitial Block DownloadNetwork · 8 §PRUNEPruned NodeNetwork · 10 §SIGNETSignetNetwork · 10 §vBvByteProtocol · 8 §WUBlock WeightProtocol · 9 §WITWitness DataProtocol · 8 §OPOpcodeProtocol · 9 §CLTVCLTVProtocol · 10 §CSVCSVProtocol · 9 §PKGPackage RelayNetwork · 8 §UTXØUtreexoProtocol · 8 §COVCovenantsProtocol · 11 §CTVOP_CHECKTEMPLATEVERIFYProtocol · 12 §NOSTRNostrNetwork · 7 §SOLOSolo MiningNetwork · 7 §PPSPay Per ShareNetwork · 5 §PPLNSPay Per Last N SharesNetwork · 4 §AUXPOWMerged MiningNetwork · 5 §FINALFinalityNetwork · 5 §BIP110BIP 110Protocol · 7 §OP_RETOP_RETURNProtocol · 11 §BIP347OP_CATProtocol · 4 §CLUSTERCluster MempoolNetwork · 5 §BIP431TRUC TransactionsNetwork · 4 §P2AEphemeral AnchorsNetwork · 4 §BIP54Consensus CleanupProtocol · 4 §ACTIVATESoft Fork ActivationProtocol · 4 §SIMPLICITYSimplicityProtocol · 4 §CSVClient-Side ValidationProtocol · 5 §RGBRGB ProtocolProtocol · 6 §TAPTaproot AssetsProtocol · 5 §ORDOrdinals InscriptionsProtocol · 5 §RUNERunesProtocol · 4 §BRC20BRC-20Protocol · 7 §ERLErlayNetwork · 4 §
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