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The Bitcoin Network is a decentralized, peer-to-peer system of interconnected computers that validates transactions and maintains the blockchain without a central authority. It combines advanced technology with a global community, making it a powerful force in digital currency.
What do we mean when we talk about “The Bitcoin Network”? Technically speaking, we’re describing a P2P web of interlocked computers connected through the Internet. The Bitcoin network is permissionless, any computer can join by running a free and open-source program known as a Bitcoin client. By doing that and downloading a copy of the blockchain, the computer becomes a “full node.”
In theory, the Internet is a P2P network, or at least it used to be. Another example is arguably one of Bitcoin’s biggest influences, the .torrent file-sharing network. For a clear and precise definition of P2P, let’s quote Andreas Antonopoulos’ “Mastering Bitcoin”:
“The term peer-to-peer, or P2P, means that the computers that participate in the network are peers to each other, that they are all equal, that there are no “special” nodes, and that all nodes share the burden of providing network services. The network nodes interconnect in a mesh network with a “flat” topology. There is no server, no centralized service, and no hierarchy within the network.”
One of Bitcoin’s main objectives is decentralization, and “no hierarchy within the network” is crucial to achieving that goal.
Is that all there is, though? Not a chance. As it usually happens in Bitcoin, a rabbit hole of characteristics and details make the subject endlessly interesting. Consider this article an introduction to the Bitcoin network and let’s run through some of those topics.
It’s hard to believe, but this worldwide movement started with a 9-page document. To put into perspective what the Bitcoin Whitepaper ignited, let’s turn to BitcoinNetwork.com for a much more bullish description of the… ehem… Bitcoin network.
“Bitcoin is a massive breakthrough in Computer Science, a highly-complex technological achievement and advancement for society: the Bitcoin Network is the world's largest super-computer -- the most secure computing network in human history -- which is reinventing both global settlements and instant payments, while simultaneously delivering a revolutionary new and upgraded form of money to all of humanity.”
That’s the proper way to start this article, with a BANG!
It’s hard to believe, but the Bitcoin Whitepaper describes “the steps to run the network” in six simple rules for mining nodes:
“1) New transactions are broadcast to all nodes.
2) Each node collects new transactions into a block.
3) Each node works on finding a difficult proof-of-work for its block.
4) When a node finds a proof-of-work, it broadcasts the block to all nodes.
5) Nodes accept the block only if all transactions in it are valid and not already spent.
6) Nodes express their acceptance of the block by working on creating the next block in the chain, using the hash of the accepted block as the previous hash.”
It’s important to know that a “full node” just validates transactions and blocks while keeping a complete copy of the blockchain. A “mining node” proposes blocks, participates in the proof-of-work process, and hopes to hit the jackpot and add its block to the chain. The Bitcoin network contains a tie-breaking mechanism, which the Whitepaper describes as follows:
“Nodes always consider the longest chain to be the correct one and will keep working on extending it. If two nodes broadcast different versions of the next block simultaneously, some nodes may receive one or the other first. In that case, they work on the first one they received, but save the other branch in case it becomes longer. The tie will be broken when the next proof-of-work is found and one branch becomes longer; the nodes that were working on the other branch will then switch to the longer one.”
In a nutshell, those simple processes make the Bitcoin network run. Are there other kinds of nodes, though?
The mining nodes use the Stratum protocol and broadcast transactions. The full nodes use the bitcoin P2P protocol and check the integrity of those transactions. Besides those, there are “lightweight nodes,” that also check transactions but don’t keep the entirety of the blockchain. According to Andreas Antonopoulos’ “Mastering Bitcoin”:
“We use the term “extended bitcoin network” to refer to the overall network that includes the bitcoin P2P protocol, pool-mining protocols, the Stratum protocol, and any other related protocols connecting the components of the bitcoin system.”
For more information about mining pools go to the “Centralizing Forces: Mining Pools and Mining in General” section of Blink’s article on decentralization.
Is that all there is? We’ve described the web of nodes supporting the Bitcoin network, but, what about the operators? Are we just talking computers or do we include the people behind the screens? And what about the much broader network of users? Are they not part of the Bitcoin network?
The technical part is impressive enough, “the Bitcoin Network is the world's largest super-computer.” Considering that it sprung from a 9-page document, we could consider it a miracle. However, if we add the people to the equation - You and me and everyone pushing this world-changing idea - the Bitcoin network becomes a living entity of the highest order. And that new form of life can’t be stopped.
Tick tock, next block.
