Block Processing Algorithm

Definition ∞ A block processing algorithm is a set of rules and procedures governing how a blockchain node validates, propagates, and adds new blocks to its local copy of the ledger. This algorithm ensures all transactions within a block comply with network consensus rules. It is fundamental to maintaining the integrity and security of the entire blockchain. Proper execution of this algorithm guarantees data consistency across all participating nodes in the network.
Context ∞ Updates to block processing algorithms are critical news items for blockchain networks, often preceding hard forks or significant protocol changes. Discussions frequently center on how these algorithms affect network security, decentralization, and transaction finality. Ongoing research aims to enhance the speed and security of these core processes to support growing network demands.