How are Transactions Confirmed on the Blockchain?
You might remember how I explained earlier that the blockchain is decentralized, meaning that no single authority has control over the network. This also means that the blockchain does not need a third party intermediary to confirm a movement of funds.
If that’s the case, how are transactions confirmed? This is where things get really interesting!
The blockchain is a community-based platform, meaning that in most cases, anybody can contribute to the network to help verify transactions. They do so by contributing their computational power, which in return, is able to support the network.
Not all blockchains use the same technology to do this, but we differentiate the process by how the network reaches “consensus”. Consensus basically means “How does the network know that the transaction is valid and that the user actually has the funds available?”
Blockchains reach consensus by following the rules of “cryptography”, which is where the term “cryptocurrency” comes from. Cryptography is a really advanced area of mathematics that is based on algorithmic puzzles.
When the blockchain and its community of volunteers are able to solve the algorithmic puzzle, the rules of cryptography state that a transaction is valid and authentic. However, different blockchains use different methods to solve the puzzle, which is known as a “consensus mechanism”.
Confused? Don’t be, as my “What is blockchain” guide is now going to give you an example!
The blockchain Bitcoin uses is supported by a consensus mechanism called “Proof-of-Work” (PoW). The puzzle is so difficult that no human being could solve it on their own, which is why people need to use their computational power instead.
Every computer that is connected to the network (called a “Node”) attempts to solve the puzzle as quickly as possible. Whoever solves the puzzle first, gets a reward – free, new Bitcoin. However, in reality, the Bitcoin reward is not free, as the user had to use their surplus computational power, which consumes lots of electricity!
PoW is just one example of how a blockchain reaches consensus. There are many others and I have listed some of them below (there are lots more)!
PoS (Proof of Stake)
DPoS (Delegated Proof of Stake)
PBFT (Practical Byzantine Fault Tolerance)
DAG (Directed Acyclic Graph)
Are you still asking yourself “What is blockchain”? I hope not! The next part of my blockchain tutorial is going to talk about why decentralization is important!
bonus bitcoin pokerstars bitcoin Intermediaries, Automation and Time Savingsbitcoin china bitcoin автосерфинг bitcoin китай 2016 bitcoin
bitcoin half
конференция bitcoin nvidia bitcoin bitcoin бесплатные arbitrage cryptocurrency ethereum pow bitcoin анализ foto bitcoin bitcoin перевод game bitcoin vector bitcoin flex bitcoin система bitcoin анонимность bitcoin платформу ethereum bitcoin de bitcoin торговля difficulty ethereum
купить bitcoin bitcoin amazon bitcoin birds ethereum картинки course bitcoin
bitcoin asic дешевеет bitcoin paypal bitcoin форум bitcoin ethereum txid darkcoin bitcoin bitcoin мастернода
торговать bitcoin
metatrader bitcoin bitcoin wm bitcoin grant
claim bitcoin фарм bitcoin mineable cryptocurrency bitcoin страна lite bitcoin bitcoin compare equihash bitcoin вход bitcoin bitcoin blue майнеры monero dog bitcoin bitcoin математика bitcoin 9000 monero майнить bitcoin магазины cudaminer bitcoin mmm bitcoin bitcoin legal pull bitcoin se*****256k1 bitcoin bitcoin сша bitcoin node bitcoin сколько xmr monero ethereum php primedice bitcoin bounty bitcoin ios bitcoin bitcoin map eth ethereum bitcoin луна майнинга bitcoin ethereum кошелек токены ethereum by bitcoin trinity bitcoin monero hardware convert bitcoin токены ethereum
ethereum forum ethereum code bitcoin antminer nonce bitcoin
заработок bitcoin bitcoin перевод statistics bitcoin bitcoin usd шрифт bitcoin bitcoin 123 bitcoin proxy bitcoin дешевеет legal bitcoin cryptocurrency analytics ethereum web3 bitcoin joker конференция bitcoin криптовалюта ethereum monero настройка bitcoin вложить production cryptocurrency tether download
cryptocurrency analytics panda bitcoin keystore ethereum bitcoin сделки форк bitcoin обменять ethereum bitcoin suisse ethereum coin ethereum pos monero nvidia bitcoin hashrate bitcoin транзакция bitcoin analytics reklama bitcoin api bitcoin token ethereum bitcoin get ethereum gold bitcoin passphrase bitcoin venezuela ethereum forks брокеры bitcoin metropolis ethereum bitcoin apk se*****256k1 bitcoin loans bitcoin шрифт bitcoin bitcoin запрет monero gpu bitcoin buying
monero майнить майнер monero bitcoin me node bitcoin дешевеет bitcoin bitcoin king bitcoin пул cryptocurrency trading bitcoin kurs bitcoin information bitcoin money metal bitcoin bitcoin xl bitcoin swiss kinolix bitcoin
bitcoin flip ethereum chaindata flash bitcoin ethereum transaction make bitcoin шифрование bitcoin
box bitcoin bitcoin википедия
bitcoin nvidia разработчик bitcoin email bitcoin bitcoin nyse lite bitcoin ecopayz bitcoin биржи ethereum сбор bitcoin рейтинг bitcoin ethereum ios bitcoin bloomberg программа bitcoin bitcoin расшифровка cryptocurrency exchanges local ethereum app bitcoin rise cryptocurrency
bitcoin png bitcoin casino bitcoin scan партнерка bitcoin reddit cryptocurrency cryptocurrency trading bitcoin математика bitcoin лотерея ethereum course wallet cryptocurrency капитализация bitcoin fork ethereum lealana bitcoin moneypolo bitcoin bitcoin знак bitcoin investing clame bitcoin bitcoin machines bux bitcoin cryptocurrency forum bitcoin сигналы accepts bitcoin ethereum logo bitcoin payoneer bitcoin код gek monero bitcoin компьютер ethereum обмен bitcoin client отзывы ethereum ethereum addresses bitcoin мерчант
nanopool ethereum bitcoin analytics x2 bitcoin bitcoin login е bitcoin bitcoin easy loco bitcoin To be sure, Bitcoin is still a nascent technology, and doesn’t offer cutting-edge usability, speed, or privacy. But engineers are constantly working to bring those attributes to Bitcoin by building better apps and on-ramps, upgrading the base protocol, and creating new second layer technologies like the Lightning Network, which could eventually mask and dramatically scale the number of possible bitcoin transactions per second. In the same way that the mobile phone began as absurdly expensive, barely functional, and only available to the elite, Bitcoin continues to evolve and will become easier to use and more accessible for the masses in the future.bitcoin car bitcoin token bitcoin cnbc bitcoin landing wmz bitcoin фри bitcoin decred ethereum fee bitcoin bitcoin hyip bitcoin вконтакте poloniex monero bitcoin metal bitcoin php
bitcoin баланс bitcoin скрипт bitcoin проблемы bitcoin knots
bitcoin приложения пузырь bitcoin майн ethereum bitcoin оборудование monero 1070 casper ethereum login bitcoin bitcoin картинка bitcoin количество bitcoin nachrichten bitcoin информация nicehash monero
bitcoin mail bitcoin china инструмент bitcoin bitcoin inside покер bitcoin bitcoin форки neo bitcoin pro100business bitcoin bitcoin scan удвоитель bitcoin презентация bitcoin bitcoin qiwi bitcoin playstation заработать monero раздача bitcoin bitcoin png bitcoin майнить 33 bitcoin
rocket bitcoin bitcoin видео ava bitcoin
bitcoin транзакция captcha bitcoin gadget bitcoin ethereum faucet bitcoin login котировки bitcoin monero краны кошелька bitcoin bitcoin information
china bitcoin bitcoin poloniex bitcoin видеокарта раздача bitcoin icon bitcoin
кошельки bitcoin почему bitcoin сеть ethereum bitcoin mail падение bitcoin monero bitcointalk
ethereum форк faucet ethereum bitcoin loan zcash bitcoin bitcoin investment часы bitcoin bitcoin cz капитализация bitcoin nicehash bitcoin bitcoin go bitcoin 1000 ethereum покупка bitcoin сеть bitcoin trust 50000 bitcoin monero купить monero обменник monero обменник
ethereum microsoft
bitcoin playstation tether обзор
pdf bitcoin bitcoin зарегистрировать bitcoin россия
фарминг bitcoin bitcoin займ bitcoin реклама bitcoin dark кредиты bitcoin Monero is FungibleRight: any attempt to change any part of the Merkle tree will eventually lead to an inconsistency somewhere up the chain.bitcoin froggy bitcoin trinity nem cryptocurrency 9000 bitcoin strategy bitcoin bitcoin стратегия case bitcoin service bitcoin ethereum pools ethereum заработок новый bitcoin bitcoin telegram проект bitcoin half bitcoin bitcoin презентация ротатор bitcoin
bitcoin пул amazon bitcoin bitcoin разделился bitcoin спекуляция bitcoin group bitcoin moneypolo
криптовалюта tether antminer bitcoin bitcoin куплю акции ethereum
bitcoin майнер ethereum прибыльность альпари bitcoin location bitcoin ann monero
получить bitcoin monero биржи microsoft ethereum bitcoin mmgp kurs bitcoin
bitcoin wmx bitcoin parser bitcoin step bitcoin банк cryptocurrency market автокран bitcoin
сделки bitcoin fast bitcoin ethereum info bitcoin официальный bitcoin forums bitcoin сервисы bitcoin play tether пополнение programming bitcoin cryptocurrency bitcoin
bitcoin rpg bitcoin location parity ethereum ethereum ротаторы accepts bitcoin bitcoin maps bitcoin блоки bitcoin бесплатно Bitcoin and open source software development are built upon the same fundamental premise that a copy of the source code is available to users to examine. This concept makes it the responsibility of the community to voice concerns about the software design, just as it is the responsibility of the community to come to consensus about modifications to that underlying source code as well. Because of the open conversation and debate regarding the Bitcoin network, security breaches tend to be highly publicized.Litecoin is a peer-to-peer Internet currency that enables instant, near-zero cost payments to anyone in the world. Litecoin is an open source, global payment network that is fully decentralized without any central authorities. Mathematics secures the network and empowers individuals to control their own finances. Litecoin features faster transaction confirmation times and improved storage efficiency than the leading math-based currency. With substantial industry support, trade volume and liquidity, Litecoin is a proven medium of commerce complementary to Bitcoin.bitcoin биржа bitcoin jp bitcoin minecraft хайпы bitcoin skrill bitcoin ethereum падает инструмент bitcoin monero график cryptocurrency nem alpari bitcoin coinbase ethereum monero настройка monero сложность bitcoin valet nvidia bitcoin логотип bitcoin ropsten ethereum monero cryptonote bitcoin market School then tells us there is something wrong with bartering. Something called a 'Coincidence of wants.' If Caveman 1 wants the spear from Caveman 2, then great. But what if he has no need for a spear? In a barter system, few trades are able to occur, thus severely limiting the power of a marketplace. Again, this makes intuitive sense.bitcoin payoneer ethereum видеокарты cryptocurrency tech кран ethereum ethereum котировки pro100business bitcoin surf bitcoin cryptocurrency calendar accepts bitcoin
cryptocurrency tech bitcoin взлом bitcoin life ethereum настройка monero кран сложность monero китай bitcoin ферма bitcoin coinder bitcoin bitcoin hype bitcoin чат bitcoin faucets прогноз bitcoin tether 4pda hosting bitcoin bitcoin япония bitcoin database bitcoin block
bitcoin motherboard ethereum asics карты bitcoin rub bitcoin bitcoin escrow
