The catch? They can only see one digit at a time! So, for example, if the number was 1234567890, they would first see “1”, then “2”, and so on until they finally figure out what the whole number is.
Now, let’s say that someone accidentally drops their piece of paper with a digit on it, but they don’t know which one it was. Everyone else at the party has to agree on which digit it was before they can continue playing the game. This is where consensus comes in!
In Bitcoin, each transaction is represented by a “block” that contains information about who sent what to whom and how much they paid for it. These blocks are added to a chain (hence the name “blockchain”) which keeps track of all the transactions that have ever happened on the network. But here’s where things get tricky: because Bitcoin is decentralized, there isn’t one central authority that can say what goes into each block or how they should be ordered. Instead, everyone in the network has to agree on which blocks are valid and which ones aren’t!
So, let’s imagine that someone wants to send some bitcoin from their wallet to your wallet. They create a new transaction (which is basically just a message saying “Hey, can you please transfer X amount of bitcoin from my wallet to yours?”) and then broadcast it out onto the network for everyone else to see.
Now, here’s where things get interesting: because there isn’t one central authority that controls everything, each node (or computer) in the network has to decide which transactions are valid and which ones aren’t! This is done using a process called “mining”, which involves solving complex mathematical puzzles.
The first person who solves the puzzle gets rewarded with some bitcoin as a way of incentivizing them to keep participating in the network (since mining requires a lot of computing power and electricity). But here’s where things get even more interesting: because there are so many people trying to solve these puzzles at once, it can take several minutes for everyone to agree on which transactions should be included in each block!