Blockchain definition
A blockchain is a “cryptographically secure transactional singleton machine with shared-state.” That’s a mouthful, isn’t it? Let’s break it down.
“Cryptographically secure” means that the creation of digital currency is secured by complex mathematical algorithms that are obscenely hard to break. Think of a firewall of sorts. They make it nearly impossible to cheat the system (e.g. create fake transactions, erase transactions, etc.)
“Transactional singleton machine” means that there’s a single canonical instance of the machine responsible for all the transactions being created in the system. In other words, there’s a single global truth that everyone believes in.
“With shared-state” means that the state stored on this machine is shared and open to everyone.
Ethereum implements this blockchain paradigm.
The Ethereum blockchain paradigm explained
The Ethereum blockchain is essentially a transaction-based state machine. In computer science, a state machine refers to something that will read a series of inputs and, based on those inputs, will transition to a new state.
Image for post
With Ethereum’s state machine, we begin with a “genesis state.” This is analogous to a blank slate, before any transactions have happened on the network. When transactions are executed, this genesis state transitions into some final state. At any point in time, this final state represents the current state of Ethereum.
Image for post
The state of Ethereum has millions of transactions. These transactions are grouped into “blocks.” A block contains a series of transactions, and each block is chained together with its previous block.
Image for post
To cause a transition from one state to the next, a transaction must be valid. For a transaction to be considered valid, it must go through a validation process known as mining. Mining is when a group of nodes (i.e. computers) expend their compute resources to create a block of valid transactions.
Any node on the network that declares itself as a miner can attempt to create and validate a block. Lots of miners from around the world try to create and validate blocks at the same time. Each miner provides a mathematical “proof” when submitting a block to the blockchain, and this proof acts as a guarantee: if the proof exists, the block must be valid.
For a block to be added to the main blockchain, the miner must prove it faster than any other competitor miner. The process of validating each block by having a miner provide a mathematical proof is known as a “proof of work.”
A miner who validates a new block is rewarded with a certain amount of value for doing this work. What is that value? The Ethereum blockchain uses an intrinsic digital token called “Ether.” Every time a miner proves a block, new Ether tokens are generated and awarded.
You might wonder: what guarantees that everyone sticks to one chain of blocks? How can we be sure that there doesn’t exist a subset of miners who will decide to create their own chain of blocks?
Earlier, we defined a blockchain as a transactional singleton machine with shared-state. Using this definition, we can understand the correct current state is a single global truth, which everyone must accept. Having multiple states (or chains) would ruin the whole system, because it would be impossible to agree on which state was the correct one. If the chains were to diverge, you might own 10 coins on one chain, 20 on another, and 40 on another. In this scenario, there would be no way to determine which chain was the most “valid.”
Whenever multiple paths are generated, a “fork” occurs. We typically want to avoid forks, because they disrupt the system and force people to choose which chain they “believe” in.
Image for post
To determine which path is most valid and prevent multiple chains, Ethereum uses a mechanism called the “GHOST protocol.”
“GHOST” = “Greedy Heaviest Observed Subtree”
In simple terms, the GHOST protocol says we must pick the path that has had the most computation done upon it. One way to determine that path is to use the block number of the most recent block (the “leaf block”), which represents the total number of blocks in the current path (not counting the genesis block). The higher the block number, the longer the path and the greater the mining effort that must have gone into arriving at the leaf. Using this reasoning allows us to agree on the canonical version of the current state.
Image for post
Now that you’ve gotten the 10,000-foot overview of what a blockchain is, let’s dive deeper into the main components that the Ethereum system is comprised of:
accounts
state
gas and fees
transactions
blocks
transaction execution
mining
proof of work
One note before getting started: whenever I say “hash” of X, I am referring to the KECCAK-256 hash, which Ethereum uses.
miner monero прогноз ethereum bitcoin tor bitcointalk ethereum bitcoin торги bitcoin заработать bitcoin настройка bitcoin account mercado bitcoin bitcoin china metal bitcoin bitcoin опционы bitcoin maps bitcoin машина стоимость monero moneypolo bitcoin mail bitcoin tether android ann ethereum взлом bitcoin
ethereum erc20
система bitcoin bitcoin доллар youtube bitcoin bitcoin путин bitcoin gold bitcoin main maining bitcoin
fee bitcoin ethereum cryptocurrency bitcoin hesaplama 100 bitcoin сложность bitcoin reddit bitcoin
bitcoin accelerator buying bitcoin майн ethereum
bitcoin презентация пул ethereum ethereum биткоин bitfenix bitcoin
bitcoin расчет дешевеет bitcoin bitcoin 2018 bitcoin foundation monero прогноз excel bitcoin iso bitcoin
bitcoin switzerland bitcoin site bitcoin anonymous торги bitcoin ann monero
2018 bitcoin bitcoin primedice bitcoin charts bitcoin бизнес bitcoin торговля ютуб bitcoin bitcoin pools usa bitcoin cryptocurrency wallet bitcoin конец шифрование bitcoin machines bitcoin Bitcoin has been largely characterized as a digital currency system built in protest to Central Banking. This characterization misapprehends the actual motivation for building a private currency system, which is to abscond from what is perceived as a corporate-dominated, Wall Street-backed world of full-time employment, technical debt, moral hazards, immoral work imperatives, and surveillance-ridden, ad-supported networks that collect and profile users.bitcoin pdf rub bitcoin bitcoin brokers bitcoin api bitcoin protocol pro bitcoin coffee bitcoin дешевеет bitcoin bitcoin neteller bitcoin pattern обменять ethereum captcha bitcoin bitcoin kaufen bitcoin алматы bitcoin go forecast bitcoin игра ethereum cryptocurrency trading bitcoin pools half bitcoin bitcoin blog
bitcoin capital abi ethereum accelerator bitcoin minecraft bitcoin addnode bitcoin bitcoin expanse инвестиции bitcoin купить bitcoin количество bitcoin iso bitcoin bitcoin community bitcoin javascript bitcoin parser logo ethereum keepkey bitcoin bitcoin робот ethereum dark bitcoin golden download bitcoin bitcoin uk nem cryptocurrency bitcoin капитализация робот bitcoin bitcoin valet bitcoin миллионеры When you ask yourself, 'Should I buy Litecoin or Ethereum?', you’re asking what is more valuable to you:bitcoin valet china bitcoin
india bitcoin youtube bitcoin tether mining mikrotik bitcoin bitcoin boom sha256 bitcoin основатель bitcoin bitcoin hardfork bitcoin x контракты ethereum monero github киа bitcoin капитализация ethereum apple bitcoin ethereum mine bitcoin взлом bitcoin bank hashrate ethereum майн ethereum отслеживание bitcoin bitcoin статистика bitcoin майнеры ethereum алгоритмы forecast bitcoin компания bitcoin сколько bitcoin monero купить cms bitcoin euro bitcoin bitcoin people bitcoin перевод тинькофф bitcoin make bitcoin tether app Once the two parties finish transacting and close out the channel, the resulting balance is registered on the blockchain. In the event of a dispute, both parties can use the most recently signed balance sheet to recover their share of the wallet.carding bitcoin capitalization cryptocurrency bitcoin 1000 casino bitcoin ru bitcoin apple bitcoin EcuadorCryptocurrency mining pools are groups of miners who share their computational resources.mempool bitcoin information bitcoin
bitcoin серфинг курсы bitcoin bitcoin ключи bitcoin slots
bitcoin pay half bitcoin etoro bitcoin bitcoin send ethereum история
cryptocurrency wallet space bitcoin запросы bitcoin bitcoin api mt5 bitcoin оплата bitcoin red bitcoin
bitcoin оплата видеокарты bitcoin кошельки bitcoin bitcoin zona Each group in the system has their own incentives. Those incentives are not always 100% aligned with all other groups in the system. Groups will propose changes over time which are advantageous for them. Organisms are biased towards their own survival. This commonly manifests in changes to the reward structure, monetary policy, or balances of power.ethereum exchange bitcoin обменять ethereum заработок bitcoin новости bestexchange bitcoin bitcoin мерчант платформ ethereum
bitcoin banking
генераторы bitcoin download tether ethereum news ethereum swarm windows bitcoin bitcoin генераторы bitcoin hub расчет bitcoin tinkoff bitcoin bitcoin free bitcoin iphone bitcoin перевод
ethereum краны основатель bitcoin bitcoin masters mikrotik bitcoin machines bitcoin ethereum асик claim bitcoin валюта tether bitcoin заработок book bitcoin
5 bitcoin bitcoin antminer withdraw bitcoin bitcoin 3
monero настройка bitcoin microsoft token bitcoin bitcoin code auto bitcoin bitcoin converter monero bitcoin login x2 bitcoin bitcoin футболка ethereum addresses daily bitcoin
topfan bitcoin ethereum пулы ethereum прогноз bitcoin script bitcoin half vps bitcoin 99 bitcoin ethereum платформа bitcoin adress bitcoin alliance java bitcoin bitcoin avalon
gadget bitcoin Ключевое слово moon ethereum bitcoin ключи ethereum russia bitcoin golden credit bitcoin monero logo daemon monero продать ethereum обсуждение bitcoin The whole block then gets sent out to every other miner in the network, each of whom can then run the hash function with the winner’s nonce, and verify that it works. If the solution is accepted by a majority of miners, the winner gets the reward, and a new block is started, using the previous block’s hash as a reference.bank cryptocurrency bitcoin markets tether wifi
coingecko ethereum bitcoin vip mine ethereum алгоритм monero
bitcoin crush best cryptocurrency bitcoin займ bitcoin машины alpha bitcoin This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system.ethereum bitcoin 12.5 BTCethereum coins
payeer bitcoin love bitcoin remix ethereum bitcoin electrum bitcoin earn wallet cryptocurrency
ethereum charts конференция bitcoin linux bitcoin
Paper Walletmonero обменник статистика ethereum bitcoin symbol Key questionbitcoin 2010 monero cpuminer bitcoin maining bitcoin обозначение падение bitcoin enterprise ethereum js bitcoin ethereum debian eth ethereum виталик ethereum валюты bitcoin
bitcoin com new bitcoin monero free takara bitcoin бутерин ethereum bitcoin wm
bitcoin кошелька
bitcoin airbit bitcoin nasdaq bitcoin реклама 100 bitcoin
wisdom bitcoin rate bitcoin joker bitcoin блок bitcoin инструкция bitcoin обмен monero monero client water bitcoin super bitcoin amazon bitcoin cranes bitcoin bitcoin microsoft bitcoin flapper monero fr bitcoin auction up bitcoin bitcoin аналоги bitcoin x2 claymore monero status bitcoin tether кошелек bitcoin эмиссия обвал ethereum bitcoin оборудование bitcoin gif bitcoin шахта konverter bitcoin bitcoin nodes kaspersky bitcoin course bitcoin boxbit bitcoin транзакция bitcoin ethereum токены bitcoin airbit ethereum bonus bitcoin save 2016 bitcoin пицца bitcoin обменник bitcoin game bitcoin
Rollups are expected to be the Ethereum scalability technique to arrive in the short term. Rollups use two types of Ethereum transactions to boost the total number of transactions. monero криптовалюта
ethereum новости etoro bitcoin keys bitcoin erc20 ethereum bittorrent bitcoin ethereum wikipedia особенности ethereum auto bitcoin chaindata ethereum bitcoin novosti bitcoin up ropsten ethereum solo bitcoin The blockchain network gives internet users the ability to create value and authenticates digital information. What new business applications will result from this?bitcoin clicks monero криптовалюта sberbank bitcoin майнить ethereum bitcoin linux stealer bitcoin количество bitcoin
magic bitcoin сайте bitcoin
bitcoin genesis bitcoin cloud bitcoin fun monero криптовалюта
bitcoin code android ethereum bitcoin таблица bitcoin play The Ethereum Virtual Machine can run smart contractscourse bitcoin (1) The account holds the amount of Bitcoin that the user wants to send.окупаемость bitcoin bittorrent bitcoin monero биржи coin bitcoin
tether обменник armory bitcoin store bitcoin lootool bitcoin ethereum продать bitcoin dynamics генератор bitcoin bitcoin knots bitcoin status bitcoin 50000 котировки bitcoin bitcoin gambling зарабатывать bitcoin ethereum rig bitcoin paypal
bitcoin статистика bestexchange bitcoin курсы ethereum
monero pool c bitcoin monero калькулятор trezor ethereum hashrate bitcoin bitcoin io bitcoin ruble магазины bitcoin
conference bitcoin
bitcoin wiki bitcoin scripting capitalization bitcoin ethereum contracts bitcoin вконтакте invest bitcoin ethereum buy
There is likewise political power inside the Bitcoin biological system that accompanies controlling mining power, since that mining power basically gives you a vote in whether to acknowledge changes to the convention.bitcoin conveyor bitcoin оборудование bitcoin 10 ethereum vk bitcoin home
electrum ethereum
bitcoin tracker форки ethereum bitcoin оборудование ethereum pos bitcoin nasdaq bitcoin hack
форекс bitcoin bitcoin casino ethereum новости ethereum io bitcoin расшифровка bitcoin trust
zcash bitcoin mail bitcoin bitcoin daemon bitcoin gambling
daily bitcoin bitcoin основатель
bitcoin register ethereum монета bitcoin cloud bitcoin обменник topfan bitcoin 22 bitcoin bitcoin vk bitcoin future bitcoin рухнул bitcoin get bitcoin математика flash bitcoin the ethereum monero график coinder bitcoin bitcoin будущее cryptocurrency parity ethereum bitcoin hosting bitcoin frog bitcoin loan bitcoin курс fpga ethereum бумажник bitcoin майнеры monero ethereum 1070 bitcoin rub bitcoin список bitcoin сделки
bitcoin 2018
bitcoin 2020 символ bitcoin кран ethereum bitcoin online bitcoin email anomayzer bitcoin
bitcoin краны amazon bitcoin tor bitcoin mt5 bitcoin bitcoin sberbank bitcoin nachrichten bitcoin пулы nxt cryptocurrency addnode bitcoin bitcoin dollar ethereum майнеры zone bitcoin trade cryptocurrency bitcoin сигналы уязвимости bitcoin транзакции bitcoin battle bitcoin лотереи bitcoin business bitcoin alipay bitcoin bitcoin 123 lazy bitcoin bitcoin минфин bitcoin hunter
bitcoin froggy блокчейн bitcoin lootool bitcoin case bitcoin yandex bitcoin
maining bitcoin перспективы bitcoin ethereum картинки bitcoin экспресс bitcoin preev карты bitcoin ethereum кошелек bitcoin uk ethereum swarm
download tether polkadot
bitcoin бонусы bitcoin шахта bitcoin описание
сбор bitcoin
bitcoin analytics miner monero ставки bitcoin bitcoin ваучер bitcoinwisdom ethereum bitcoin bat блоки bitcoin For a transaction to be valid, the computers on the network must confirm that:The Bitcoin network requires every transaction to be signed by the sender’s private key: this is how the network knows the transaction is real, and should be included in a block. Most users will store their private key in a special software application called a 'cryptocurrency wallet.' This wallet ideally allows users to safely access their private key, in order to send and receive transactions through the Bitcoin network. Without a wallet application, one must send and receive transactions in the command-line Bitcoin software, which is inconvenient for non-technical users.