o o
/|\ /|\
o---+---o---+---o
\|/ \|/
o---o---o
\ | /
[ ]
VERIFY IT
SIGNAL RECOVERED // PEERS ONLINE
Nodes receive transactions and blocks and check them against the protocol rules they enforce. This distributed verification is one reason no central operator gets to decide unilaterally what counts as valid Bitcoin.
A rule followed by one is preference. A rule independently verified by many becomes a network.