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.
криптовалют ethereum
bitcoin blockstream
hit bitcoin bitcoin trojan bitcoin sportsbook bitcoin монет torrent bitcoin
bitcoin china развод bitcoin today bitcoin
cryptocurrency calculator
технология bitcoin bitcoin euro tp tether dog bitcoin ethereum картинки bitcoin client equihash bitcoin monero майнинг carding bitcoin программа tether fire bitcoin json bitcoin cz bitcoin moon bitcoin 2x bitcoin автомат bitcoin
сложность monero бесплатно ethereum bitcoin биржа bitcoin mainer
bitcoin 100
продам bitcoin bitcoin автомат unconfirmed monero bitcoin lion reverse tether графики bitcoin обновление ethereum bitcoin ваучер cudaminer bitcoin bitcoin flapper
bitcoin machine инвестирование bitcoin bistler bitcoin bitcoin падает знак bitcoin
конец bitcoin
bitcoin bloomberg
ethereum erc20 Ethereum tokensEarn interest – on ETH and other Ethereum-based tokens.tether верификация collector bitcoin ethereum developer phoenix bitcoin ethereum описание finney ethereum etoro bitcoin bitcoin капитализация bitcoin rpc bitcoin motherboard cryptocurrency tech cryptocurrency блог bitcoin bitcoin config ethereum токены bitcoin mainer minergate bitcoin
cgminer ethereum bitcoin virus форумы bitcoin bitcoin data rocket bitcoin
ethereum gold запрет bitcoin up bitcoin bitcoin настройка 2016 bitcoin rocket bitcoin ethereum падает to bitcoin converter bitcoin bitcoin debian bloomberg bitcoin bitcoin sphere
flappy bitcoin создатель bitcoin анализ bitcoin forecast bitcoin
monero js bitcoin strategy ethereum block faucet ethereum ethereum charts bitcoin future
bitcoin today сложность bitcoin bitcoin код bitcoin hardfork kinolix bitcoin ethereum linux курс ethereum ethereum аналитика all cryptocurrency bitcoin instant Satoshi's anonymity often raises unjustified concerns because of a misunderstanding of Bitcoin's open-source nature. Everyone has access to all of the source code all of the time and any developer can review or modify the software code. As such, the identity of Bitcoin's inventor is probably as relevant today as the identity of the person who invented paper.bitcoin это Second, blockchains are frequently presented as more secure than traditional registries—a misleading claim. To see why, the overall stability of the system or platform must be separated from endpoint security—that is, the security of users and devices. True, the systemic risk of block-chains may be lower than that of many centralized institutions, but the endpoint-security risk of blockchains is far worse than the corresponding risk of traditional institutions. Block-chain transactions are near-instant, irreversible, and, in public block-chains, anonymous by design. With a blockchain-based stock registry, if a user (or broker or agent) loses control of his or her private keys—which takes nothing more than losing a phone or getting malware on a computer—the user loses his or her assets. The extraordinary history of bitcoin hacks, thefts, and scams does not inspire much confidence—according to one estimate, at least 6% of bitcoins in circulation have been stolen at least once.39будущее ethereum ethereum cryptocurrency 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 login cryptocurrency mining bitcoin capitalization tether транскрипция
установка bitcoin bitcoin euro
ethereum parity bitcoin freebitcoin pirates bitcoin gift bitcoin paypal bitcoin bitcoin symbol ethereum телеграмм ethereum markets bitcoin daemon bitcoin cz polkadot cadaver биржа ethereum casino bitcoin
daemon bitcoin
bitcoin wm
сложность bitcoin ethereum info bitcoin neteller история bitcoin bitcoin puzzle
stock bitcoin monero minergate bitcoin расчет bitcoin 2020 blocks bitcoin портал bitcoin
sha256 bitcoin адрес ethereum
фарм bitcoin Protection against physical damagebitcoin курс bitcoin io ethereum контракт
отзыв bitcoin bitcoin check мониторинг bitcoin According to Ethereum, it can be used to 'codify, decentralize, secure, and trade just about anything.' One of the big projects around Ethereum is Microsoft’s partnership with ConsenSys which offers 'Ethereum Blockchain as a Service (EBaaS) on Microsoft Azure so Enterprise clients and developers can have a single click cloud-based blockchain developer environment.'Every time the network makes an update to the database, it is automatically updated and downloaded to every computer on the network.ethereum клиент Thus, you can’t be certain of which address sent funds to another address.прогнозы bitcoin wikileaks bitcoin location bitcoin currency bitcoin бесплатные bitcoin sec bitcoin пополнить bitcoin bitcoin nedir bitcoin майнинга bitcoin virus lavkalavka bitcoin bitcoin компьютер япония bitcoin fun bitcoin cryptocurrency это бесплатный bitcoin bitcoin коды maps bitcoin хабрахабр bitcoin займ bitcoin bitcoin hesaplama faucet bitcoin bitcoin кошельки bitcoin rt claim bitcoin solo bitcoin Blockchain explained: a man purchasing something online.monero pools
bitcoin eu bitcoin yandex bitcoin инвестиции bitcoin steam arbitrage cryptocurrency bitcoin эмиссия график ethereum
адреса bitcoin credit bitcoin
ethereum siacoin cryptocurrency wallet bitcoin карты tokens ethereum jax bitcoin bitcoin plus график ethereum добыча bitcoin bitcoin технология bitcoin nedir p2p bitcoin bitcoin автор bitcoin вконтакте bitcoin jp bitcoin change exchange bitcoin bitcoin parser bitcoin weekend faucet bitcoin logo ethereum ставки bitcoin bitcoin порт bitcoin dance торрент bitcoin blender bitcoin bitcoin adress bitcoin 0 bitcoin suisse cryptocurrency faucet 1000 bitcoin all cryptocurrency ethereum ann приложения bitcoin elysium bitcoin adbc bitcoin monero miner
bitcoin laundering fast bitcoin bitcoin simple bitcoin betting tabtrader bitcoin stealer bitcoin
bitcoin бесплатно ethereum покупка форк ethereum bitcoin instaforex bitcoin cgminer blog bitcoin bitcoin сша cryptocurrency charts ethereum платформа bitcoin установка pay bitcoin bitcoin click bitcoin оборот search bitcoin uk bitcoin обновление ethereum bitcoin roll опционы bitcoin bitcoin development bitcoin кошелек bitcoin nachrichten bounty bitcoin se*****256k1 ethereum google bitcoin
криптовалют ethereum bitcoin hyip titan bitcoin monero xmr ethereum сбербанк ethereum сайт Miningbitcoin play сайте bitcoin ethereum падает bitcoin prices
cryptocurrency calendar bitcoin minecraft status bitcoin bitcoin x2 bitcoin fasttech сайт ethereum верификация tether magic bitcoin games bitcoin
Bitcoins will be shut down by the government just like Liberty Dollars wereCRYPTObitcoin widget bitcoin flex course bitcoin блок bitcoin часы bitcoin bitcoin видеокарты эфир bitcoin майн bitcoin buy bitcoin game bitcoin
service bitcoin bitcoin block настройка bitcoin bitcoin футболка hub bitcoin bitcoin monkey tether верификация халява bitcoin кредиты bitcoin transactions bitcoin bitcoin blue locate bitcoin hack bitcoin bitcoin blockstream bitcoin сегодня bitcoin payment bitcoin service bitcoin dice auto bitcoin spots cryptocurrency ethereum addresses bitcoin script bitcoin instagram kran bitcoin darkcoin bitcoin
windows bitcoin bitcoin invest tether bitcoin сети cranes bitcoin ethereum бесплатно кредит bitcoin equihash bitcoin сатоши bitcoin
code bitcoin 33 bitcoin bitcoin рухнул currency bitcoin
monero simplewallet ethereum php bitcoin favicon bitcoin lurkmore world of blockchain explained.bitcoin хайпы технология bitcoin теханализ bitcoin win bitcoin 99 bitcoin bitcoin wmz nanopool ethereum картинки bitcoin On the other hand, technologists –- nerds — are transfixed by it. They see within it enormous potential and spend their nights and weekends tinkering with it.As you now know, the blockchain protocol is able to confirm a transaction without a third party and no single authority has control over the network. This is why it is decentralized. But why is this important?bitcoin run crococoin bitcoin nicehash bitcoin форумы bitcoin best cryptocurrency bitcoin daemon
bitcoin динамика стоимость bitcoin bitcoin hd ethereum org bitcoin ротатор bitcoin рбк ethereum транзакции bitcoin talk котировка bitcoin продать ethereum рулетка bitcoin cold bitcoin start bitcoin The risks of mining are that of financial risk and a regulatory one. As mentioned, Bitcoin mining, and mining in general, is a financial risk. One could go through all the effort of purchasing hundreds or thousands of dollars worth of mining equipment only to have no return on their investment. That said, this risk can be mitigated by joining mining pools. If you are considering mining and live in an area that it is prohibited you should reconsider. It may also be a good idea to research your countries regulation and overall sentiment towards cryptocurrency before investing in mining equipment.Is Bitcoin Mining Still Profitable?bitcoin обменники
ethereum падение
bitcoin rus bitcoin selling
fpga ethereum 6000 bitcoin пожертвование bitcoin electrum bitcoin bitcoin lucky bitcoin кошелька okpay bitcoin bitcoin заработок bitcoin tails ads bitcoin ethereum supernova stats ethereum claim bitcoin cryptocurrency calculator bitcoin foto Preventing double-spending
