# Network Operations and Consensus

In the Bitcoin network, **nodes** are defined as entities that participate in the creation of blocks. To be considered a node, an entity must perform six essential steps:

1. **Validating Transactions**: Nodes verify transactions against consensus rules to ensure compliance with the protocol, preventing double spending and adhering to script conditions.
2. **Propagating Transactions**: Valid transactions are broadcast to other nodes, ensuring they are available for inclusion in a block.
3. **Assembling Transactions into Blocks**: Nodes gather valid transactions from the mempool and construct blocks that fit within their configured block size policy.
4. **Solving Proof of Work (PoW) Puzzles**: Nodes compete to solve a computational puzzle that determines who has the right to add the next block.
5. **Propagating Blocks**: Once a block is successfully mined, it is broadcast to the network for validation by other nodes.
6. **Maintaining the Blockchain State**: Nodes maintain the entire blockchain history, ensuring the longest valid chain is consistently adopted as the correct state.

In the event of discrepancies regarding the state of the blockchain, nodes resolve conflicts through **Nakamoto Consensus**. This mechanism **ensures that the longest valid chain**, which has the most accumulated proof-of-work, **is accepted as the authoritative version of the blockchain**.


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