What Is Bitcoin?

Bitcoin is a decentralized digital currency that enables peer-to-peer transactions without the need for intermediaries like banks or payment processors. Launched in 2009 by an anonymous creator (or group) using the pseudonym Satoshi Nakamoto, Bitcoin introduced the world to blockchain technology.

In this guide, we’ll explain the two most prominent consensus mechanisms—Proof of Work (PoW) and Proof of Stake (PoS)—their differences, and why they matter in the blockchain world.

A consensus mechanism is the process by which a blockchain network agrees on the validity of transactions.