As anticipated, our goal here is to discuss how the participants in a blockchain network ensure that the double entry accounting principle is taken care of. We'll also show how this solution is different from the other existing solutions of the legacy financial system.
In the Bitcoin blockchain, payments are settled through a so-called consensus mechanism, which works based on economic incentives rooted in game theory. Confused? We will explain it in simpler terms in the following paragraph.
The consensus process aligns the interests of all network participants, so that their best course of action is to support the truthful verification and record-keeping of all transactions. We'll cover the consensus mechanisms in more detail later on. For now, here's what Satoshi himself wanted to share about this issue:
