Module 3: Nodes, consensus algorithms, and forks

In this module, you will learn about the structure of the blockchain. You will understand what nodes are, how they manage blockchains using consensus algorithms, and how they develop them through forks.

Summary

Blockchain is managed by nodes - regular participants in the network. Nodes can be of different types, but usually they are devices with installed crypto wallets.

The interaction between nodes is fully automated and occurs through a set of rules - a consensus algorithm selected in a specific blockchain.

Nodes can also make changes to the blockchain. To do this, they conduct soft forks - making minor changes, after which nodes that accepted the updates and nodes that rejected them continue to work in the same blockchain.

And also hard forks - major updates that change the fundamental principles of blockchain operation, after which updated and old nodes cannot work together, so they split the blockchain into two copies and work with each of them separately.