Nodes rely on a peer-to-peer network architecture, where they communicate and share information directly with other nodes in the network. When a new transaction is initiated, it is broadcasted to multiple nodes, which then validate its authenticity and verify if the sender has sufficient funds. Once verified, the transaction is included in a block, which is added to the blockchain.
To maintain consensus within the network, nodes utilize various consensus algorithms such as Proof of Work (PoW) or Proof of Stake (PoS). These algorithms ensure that all nodes agree on the validity and order of transactions, preventing double-spending and other malicious activities.