Bitcoin protocol

The bitcoin protocol is the set of rules that govern the functioning of bitcoin. Its key components and principles are: a peer-to-peer decentralized network with no central oversight. The blockchain technology is a public ledger that records all bitcoin transactions. Mining and proof of work, the process to create new bitcoins and verify transactions, is also a key part of the bitcoin protocol. The bitcoin protocol has inspired the creation of numerous other digital currencies and blockchain-based technologies, making it a foundational technology in the field of cryptocurrencies. The U.S. currently holds the largest share of bitcoin mining pools, despite the Chinese ban on bitcoin mining in 2021. The probability of a slower attacker catching up as subsequent blocks are added exponentially diminishes as subsequent interest in running nodes is increased. If there is a deviation in consensus then a fork can occur in the bitcoin network, which required the greatest amount of computing power to produce the longest chain. To modify a past block, an attacker would have to redo the proof-of-work to modify the past block and then surpass the work of all honest nodes.