The steps to run the network are as follows: 1) New transactions are broadcast to all nodes. 2) Each node collects new transactions into a block. 3) Each node works on finding a difficult proof-of-work for its block. 4) When a node finds a proof-of-work, it broadcasts the block to all nodes. 5) Nodes accept the block only if all transactions in it are valid and not already spent. 6) Nodes express their acceptance of the block by working on creating the next block in thechain, using the hash of the accepted block as the previous hash. Nodes   always   consider   the   longest   chain   to   be   the   correct   one   and   will   keep   working   on extending it.   If two nodes broadcast different versions of the next block simultaneously, some nodes may receive one or the other first.  In that case, they work on the first one they received,but save the other branch in case it becomes longer.  The tie will be broken when the next proof-of-work   is   found   and   one   branch   becomes   longer;   the   nodes   that   were   working   on   the   other branch will then switch to the longer one. New transaction broadcasts do not necessarily need to reach all nodes.  As long as they reach many nodes, they will get into a block before long.  Block broadcasts are also tolerant of dropped messages.  If a node does not receive a block, it will request it when it receives the next block and realizes it missed one.

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