Which consensus algorithm is utilized by Bitcoin?

The consensus algorithm utilized by Bitcoin is Proof of Work. This method is integral to how Bitcoin functions as a decentralized cryptocurrency. In this system, miners compete to solve complex mathematical puzzles, and the first one to solve it gets to add a new block to the blockchain. The process requires significant computational power and energy but ensures that transactions are verified in a secure manner.

Proof of Work provides a way to achieve consensus on the network by making it costly and time-consuming to create new blocks. This discourages malicious activities, as an attacker would need to control more than half of the network's computational power to overpower legitimate miners. Additionally, because Bitcoin's supply is capped at 21 million coins, the Proof of Work process creates an economic incentive for miners, aligning their interests with maintaining the integrity and security of the network.

The other consensus algorithms mentioned, such as Proof of Authority, Proof of Stake, and Delegated Proof of Stake, represent different approaches used in various blockchain systems but do not apply to Bitcoin's mechanism.