Bitcoin consensus algorithm interview questions covering Proof-of-Work (PoW) and Nakamoto consensus. Q1: How does Bitcoin (Nakamoto) consensus work? Answer: Bitcoin uses Proof-of-Work (PoW) consensus, also known as Nakamoto consensus. Sequence Diagram: Overall Flow Diagram: Individual Node Decision Diagram: Bitcoin …

Multi-signature schemes require multiple parties to sign a transaction or message, providing enhanced security and distributed control. Overview Multi-signature (multisig) requires $m$ out of $n$ signatures to authorize a transaction or validate a message. Notation: $m$-of-$n$ multisig $n$ = total number of signers $m$ …

Core principles, consensus mechanisms, and key innovations of major blockchain platforms. Bitcoin (BTC) Core Principles Digital gold: Store of value, not programmable Decentralization: ~15,000 full nodes worldwide Security: Most secure blockchain (highest hash rate) Simplicity: Intentionally limited functionality …