Blockchain 101 Episode 31 – What is competitive bookkeeping?

Competitive Bookkeeping is how the Bitcoin network does its accounting, it helps to ensure and maintain the integrity and consistency of the distributed ledger.

The Bitcoin system doesn’t rely on a central authority for bookkeeping. Every node has the right to be a bookkeeper, therefore, ensuring the consistency of every ledger becomes a priority.

In the Bitcoin network, every miner competes for bookkeeping, those with higher hashing power have better chances of winning the competition. The winner will update the ledger and distribute the latest version to the entire network. In return, the winner will receive newly generated Bitcoins as a reward.

When the price of Bitcoin increases, It attracts more people to become miners to win the right of updating the ledger, And in turn, the network will increase the mining difficulty level.