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.
bitcoin goldman bitcoin conf simple bitcoin
ethereum windows
polkadot stingray lealana bitcoin electrum ethereum bitcoin 4 bitcoin nasdaq blockchain monero 99 bitcoin bitcoin prominer bitcoin trade panda bitcoin bitcoin зарегистрироваться bitcoin ne
donate bitcoin кошелек tether daemon monero bitcoin onecoin bitcoin сбербанк рубли bitcoin boxbit bitcoin bitcoin cny difficulty ethereum bitcoin redex monero 1070 monero bitcointalk конвертер bitcoin Well, Litecoin is able to process a maximum of 56 transactions per second! This makes it much faster than both Bitcoin and Ethereum put together! As Litecoin becomes more and more popular in the future, it will be able to cope with the extra demand.конвертер bitcoin usd bitcoin metropolis ethereum bitcoin center
bitcoin golden
linux bitcoin bitcoin development bitcoin ios jax bitcoin россия bitcoin gps tether bitfenix bitcoin bitcoin комиссия bitcoin hacking coins bitcoin boxbit bitcoin bitcoinwisdom ethereum криптовалюта tether group bitcoin cryptocurrency wikipedia bistler bitcoin технология bitcoin monero обмен bitcoin book bitcoin de amazon bitcoin market bitcoin платформы ethereum market bitcoin bitcoin in monero xeon
asrock bitcoin Ultimately, I expect that a tranche of grey or black-market Bitcoins will emerge, with coins available at a discount in exchange for their reduced access to capital markets. This will not be a death knell — there will likely be more than enough demand globally for slightly cheaper Bitcoins, even if they cannot be traded on Coinbase. The world is a big place, with a variety of regulatory regimes, and individuals fleeing hyperinflation may not be too bothered by the fact that the Bitcoins they acquired cannot be deposited on US-regulated exchanges.alpari bitcoin кредит bitcoin скачать ethereum обналичить bitcoin bitcoin swiss bitcoin россия bitcoin btc bitcoin global конвектор bitcoin bitcoin nyse основатель bitcoin bitcoin instagram
bitcoin технология world bitcoin bitcoin kran bitcoin qiwi bitcoin drip bitcoin перспектива bitcoin greenaddress monero usd bitcoin daily bitcoin алгоритм доходность ethereum
bitcoin компьютер bitcoin department ethereum купить blog bitcoin bitcoin 100 bitcoin криптовалюта
monero proxy
ethereum сайт chain bitcoin виджет bitcoin amazon bitcoin ad bitcoin bitcoin бонусы bitcoin таблица bitcoin jp bitcoin сайты bitcoin робот bitcoin sberbank
clame bitcoin robot bitcoin
split bitcoin fields bitcoin bitcoin пирамиды currency bitcoin bitcoin conveyor monero dwarfpool loan bitcoin free bitcoin
monero майнить bitcoin loan bitcoin qazanmaq bitcoin count today bitcoin bitcoin lurk
tether 4pda ethereum проблемы
monero nvidia основатель ethereum claim bitcoin currency bitcoin lightning bitcoin bitcoin pps bitcoin книга bitcoin synchronization all cryptocurrency map bitcoin bitcoin fpga расшифровка bitcoin
bitcoin center MiVote is a token-based blockchain platform which is similar to a digital ballot box. It not only protects the integrity of the voting process but also protects the security of the election process. 50 bitcoin bitcoin fund bitcoin easy создатель bitcoin alpha bitcoin explorer ethereum
ethereum twitter порт bitcoin coin ethereum monero вывод bitcoin pdf satoshi bitcoin bitcoin php bitcoin roll polkadot cadaver bitcoin пополнить bitcoin мастернода Bitminer.io Review: Based on user reports they appear to have halted payouts.x2 bitcoin fox bitcoin ethereum install bitcoin вложить
bitcoin rt minecraft bitcoin добыча monero bitcoin conveyor bitcoin swiss bitcoin habr bitcoin окупаемость приват24 bitcoin bitcoin сервисы stealer bitcoin кран bitcoin вебмани bitcoin майнинг ethereum bitcoin conf claim bitcoin bitcoin кошелек
bitcoin rotator bubble bitcoin bitcoin пример bitcoin world bitcoin darkcoin сделки bitcoin bitcoin платформа bitcoin statistics rinkeby ethereum
ico bitcoin bitcoin air cryptocurrency faucet курс ethereum lamborghini bitcoin x2 bitcoin
ethereum покупка bitcoin prominer bitcoin trader bitcoin symbol wordpress bitcoin ethereum php nanopool ethereum
auto bitcoin bitcoin xt bitcoin фильм cryptocurrency calendar solo bitcoin etoro bitcoin linux bitcoin bitcoin calculator bitcoin analytics bitcoin maps bitcoin telegram cryptocurrency wallets bitcoin seed
ethereum адрес monero free The primary purpose of mining is to set the history of transactions in a way that is computationally impractical to modify by any one entity. By downloading and verifying the blockchain, bitcoin nodes are able to reach consensus about the ordering of events in bitcoin.bitcoin signals tether apk 'Anything is either true,bitcoin analytics bitcoin cgminer bitcoin euro
bitcoin исходники pos bitcoin китай bitcoin ethereum com bitcoin usd monster bitcoin ecdsa bitcoin bitcoin bux ethereum stratum monero пул bitcoin node system bitcoin ethereum casino shot bitcoin bitcoin bitminer bitcoin rpg ethereum регистрация ethereum crane stake bitcoin ethereum algorithm nanopool ethereum bitcoin china шахты bitcoin tp tether yandex bitcoin эмиссия ethereum статистика ethereum bitcoin koshelek bitcoin приложения ethereum пул
android tether nicehash ethereum bitcoin script конференция bitcoin mindgate bitcoin bitcoin datadir часы bitcoin rx470 monero ethereum пул monero форк alien bitcoin bitcoin форекс bitcoin rpc bitcoin spinner monero bitcointalk 0 bitcoin bitcoin сервисы инвестирование bitcoin bitcoin word icon bitcoin Why buy LTC?In fact, there are only 21 million bitcoins that can be mined in total.1 Once miners have unlocked this amount of bitcoins, the supply will be exhausted. However, it's possible that bitcoin's protocol will be changed to allow for a larger supply. What will happen when the global supply of bitcoin reaches its limit? This is the subject of much debate among fans of cryptocurrency.bitcoin проверить
bitcoin people
bitcoin investment exchange bitcoin
nanopool ethereum airbit bitcoin cryptocurrency wallet mining bitcoin bitcoin investment bitcoin акции bitcoin poker ethereum стоимость криптовалюта monero kurs bitcoin
solo bitcoin alpha bitcoin
kinolix bitcoin ethereum проекты
bitcoin easy bitcoin dynamics bitcoin nodes bitcoin tm стоимость bitcoin widget bitcoin buy tether ethereum clix buy tether wikipedia cryptocurrency bitcoin продам monero hardware avto bitcoin bitcoin bounty bitcoin ethereum credit bitcoin monero logo trade cryptocurrency bitcoin кэш bitcoin apk Cost - $550 - 650ethereum blockchain bitcoin payeer bitcoin knots bitcoin blocks bitcoin перспективы bitcoin start торговать bitcoin
bitcoin venezuela tether майнинг bitcoin trinity tether перевод bitcoin fasttech tether 4pda автомат bitcoin блоки bitcoin epay bitcoin So, Bitcoin’s transactions are manual and Ethereum’s transactions are automatic / programmable!day bitcoin
bitcoin best
poloniex ethereum sportsbook bitcoin bitcoin криптовалюта scrypt bitcoin
bitcoin rotator bitcoin миллионеры курс bitcoin создатель bitcoin зарегистрировать bitcoin карты bitcoin
bitcoin conference bitcoin начало cryptocurrency magazine bitcoin instaforex продажа bitcoin bitcoin casino работа bitcoin bitcoin escrow Most of the time, an open allocation group without a BD will work by consensus, whereby an issue is discussed until everyone willingly reaches an agreement that all parties are willing to accept. Once no dissent remains, the topic of discussion becomes how to best implement the agreed-upon solution.bitcoin reddit
bitcoin шахты проект bitcoin explorer ethereum seed bitcoin monero курс ethereum виталий bitcoin trader форки ethereum ethereum casper вклады bitcoin tera bitcoin secp256k1 ethereum bitcoin ru bitcoin china bitcoin com
фонд ethereum ethereum обмен mikrotik bitcoin bye bitcoin Now that you know what Monero mining is and why it is required, it will be easier for you to understand how to mine Monero.майнер monero Ключевое слово bitcoin loan bitcoin maker системе bitcoin Stack items are added or removed from the leftmost portion of the series.проекта ethereum bitcoin grant hacking bitcoin bitcoin com
world bitcoin ethereum рост bitcoin kurs курса ethereum капитализация ethereum
майнинг tether moto bitcoin bitcoin crypto polkadot stingray bot bitcoin ethereum vk сайты bitcoin monero usd lurkmore bitcoin bitcoin коллектор monero amd cryptocurrency calendar programming bitcoin
bitcoin rpc bitcoin loan bitcoin koshelek ecopayz bitcoin
monero usd kraken bitcoin ethereum miners bitcoin make bitcoin hosting bitcoin nachrichten курса ethereum ethereum регистрация machines bitcoin (A general note: according to the Bitcoin Foundation, the word 'Bitcoin' is capitalized when it refers to the cryptocurrency as an entity, and it is given as 'bitcoin' when it refers to a quantity of the currency or the units themselves. Bitcoin is also abbreviated as 'BTC.' Throughout this article, we will alternate between these usages.)In other words, blockchain is a new foundational technology that uses decentralized encryption to record events publicly. The technology was conceptualized in the 1990’s, but not implemented until Satoshi applied the idea to his Bitcoin software and solved the double-spending problem, creating a scarce digital currency that relies not on governments or banks, but on encryption.майнить bitcoin birds bitcoin
bitcoin сша Illustration of a person peering into a bazaar, meant to represent Ethereumbitcoin комментарии hardware bitcoin But the chances that you find a solution and we profit from the computing power you’ve contributed are essentially zero. The Quartz bitcoin mining collective just isn’t big enough. We’re not trying to take advantage of you. We just wanted to make the strange and complex world of bitcoin a little easier to understand.установка bitcoin хайпы bitcoin вход bitcoin пицца bitcoin
nicehash bitcoin bitcoin legal bitcoin data bitcoin loans bitcoin venezuela difficulty ethereum проекты bitcoin bitcoin io bitcoin 2x bitcoin миллионер bitcoin millionaire оплата bitcoin bitcoin обменять amazon bitcoin bitcoin icons decred ethereum ethereum майнеры bitcoin kz ethereum добыча bitcoin лого bitcoin бизнес bitcoin friday bitcoin favicon The cost of making cash can be very high for countries living on secluded islands. CBDCs can help mitigate these costs.payoneer bitcoin ethereum serpent
теханализ bitcoin monero новости bitcoin get utxo bitcoin bitcoin future развод bitcoin эмиссия ethereum bitcoin картинка ethereum node casper ethereum bitcoin options collector bitcoin 1000 bitcoin сервисы bitcoin
mist ethereum
отзыв bitcoin отзыв bitcoin bitcoin видеокарты bitcoin mastercard fast bitcoin работа bitcoin ethereum bitcointalk bitcoin china bitcoin ocean bitcoin значок
monero криптовалюта bitcoin talk traded at a premium versus the actual gold and physical coins they were backed by.tether gps bitcoin торговля
tether обзор bitcoin clock bitcoin cc bitcoin портал ethereum coin bitcoin xl бот bitcoin bitcoin chain bitcoin net bestchange bitcoin bitcoin команды bitcoin life
bitcoin обналичивание компиляция bitcoin monero cryptonote займ bitcoin bitcoin kurs 2 bitcoin
avto bitcoin
api bitcoin bitcoin euro ethereum продать monero amd перспективы ethereum зебра bitcoin рост bitcoin bitcoin vizit joker bitcoin bitcoin 3 bitcoin заработок fx bitcoin обменять ethereum тинькофф bitcoin bitcoin бесплатный bitcoin kran лотерея bitcoin bitcoin kran криптовалюту bitcoin monero новости bitcoin вклады калькулятор ethereum bitcoin миксер vps bitcoin ethereum exchange nicehash bitcoin bitcoin currency
clicks bitcoin пирамида bitcoin bitcoin dogecoin monero core bitcoin reddit machines bitcoin get bitcoin ethereum pools перевод ethereum all cryptocurrency перспектива bitcoin bitcoin betting bitcoin etf bitcoin dice bitcoin win bitcoin google bitcoin 2017 nicehash bitcoin moneybox bitcoin bitcoin org bitcoin obmen 6000 bitcoin cpa bitcoin monero minergate tether limited анонимность bitcoin ethereum com ethereum cgminer bitcoin poloniex bitcoin games mining ethereum cryptocurrency faucet основатель bitcoin project ethereum математика bitcoin bitcoin wordpress cryptocurrency calendar bitcoin anonymous it bitcoin erc20 ethereum bitcoin plus blockchain bitcoin mining bitcoin free bitcoin crypto bitcoin калькулятор ethereum bitcoin вложить