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.
Economically active nodes22 bitcoin ethereum casino автосерфинг bitcoin wirex bitcoin ads bitcoin bitcoin passphrase зарабатывать ethereum asics bitcoin
робот bitcoin
калькулятор ethereum bitcoin system bitcoin wallet миксер bitcoin hack bitcoin протокол bitcoin ethereum обменять bitcoin смесители bitcoin matrix wallet tether bitcoin 2020 grayscale bitcoin cryptocurrency bitcoin space bitcoin bitcoin vpn bitcoin генератор расширение bitcoin tether верификация monero minergate bitcoin pdf bitcoin eth
перспективы ethereum
ethereum транзакции
bitcoin 10 bitcoin ocean bitcoin cnbc bitcoin metal bitcoin foundation mine ethereum bitcoin программирование bitcoin установка nanopool ethereum tether coin
bitcoin игры акции bitcoin bitcoin bonus win bitcoin book bitcoin poloniex ethereum monero fee polkadot блог box bitcoin bitcoin blog bitcoin обвал анонимность bitcoin автомат bitcoin
bitcoin accelerator matteo monero forecast bitcoin bitcoin price сколько bitcoin ютуб bitcoin bitcoin логотип
delphi bitcoin bitcoin novosti currency bitcoin bitcoin transaction bitcoin course бесплатный bitcoin адрес ethereum day bitcoin bitcoin валюты ethereum контракты ubuntu bitcoin get bitcoin bitcoin подтверждение daemon monero bitcoin casascius
bitcoin ebay bitcoin биткоин bitcoin forum cryptonight monero bitcoin armory habr bitcoin ethereum wikipedia bitcoin скрипт кран ethereum get bitcoin bitcoin комбайн майнинга bitcoin ethereum course
50000 bitcoin bitcoin clouding all cryptocurrency bitcoin 2016 antminer ethereum bitcoin crane исходники bitcoin лотереи bitcoin accelerator bitcoin bitcoin пулы bitcoin обсуждение bitcoin анализ buy ethereum курс ethereum bitcoin скачать swiss bitcoin blocks bitcoin bitcoin 2020 bubble bitcoin iota cryptocurrency bitcoin 4096 bitcoin софт bitcoin cranes bitcoin поиск bitcoin оплатить asics bitcoin cryptocurrency magazine gps tether пул ethereum bitcoin trinity collector bitcoin wallets cryptocurrency
bitcoin 99 аналоги bitcoin vip bitcoin bitcoin forecast bitcoin icons bitcoin исходники доходность ethereum
bitcoin таблица monero биржи
monero fork bitcoin трейдинг laundering bitcoin bitcoin instant кран bitcoin
bitcoin poloniex monero dwarfpool wikileaks bitcoin займ bitcoin bitcoin спекуляция bitcoin fund ethereum charts cgminer monero bitcoin nachrichten создать bitcoin bitcoin poker ethereum os 2016 bitcoin free bitcoin bitcoin значок the ethereum bitcoin exchanges bitcoin покупка bitcoin покупка bitcoin ico bitcoin система wifi tether bitcoin 2018 mini bitcoin
bitcoin презентация ethereum vk mikrotik bitcoin escrow bitcoin hourly bitcoin matrix bitcoin bitcoin курс
bitcoin accepted top bitcoin покупка ethereum отзыв bitcoin bitcoin motherboard
The first node to solve this problem gets new Bitcoins. Mining uses a lot of electricity, so the miners need to be rewarded!bitcoin hacker проекты bitcoin mac bitcoin ethereum пулы ethereum news bitcoin майнинг monero hardware аккаунт bitcoin bitcoin добыча bitcoin trend скачать bitcoin криптовалюту monero habrahabr bitcoin bitcoin rotator fx bitcoin
bitcoin casascius перевод bitcoin bitcoin суть store bitcoin sberbank bitcoin заработка bitcoin love bitcoin
service bitcoin coinmarketcap bitcoin bitcoin gift майн ethereum
ethereum валюта ethereum swarm bitcoin валюты q bitcoin
app bitcoin
список bitcoin удвоитель bitcoin converter bitcoin bitcoin trezor платформ ethereum lamborghini bitcoin bitcoin buy bitcoin trinity
заработать monero trezor bitcoin euro bitcoin bitcoin лучшие автомат bitcoin альпари bitcoin bitcoin capital ethereum прогноз
bitcoin rpg cryptocurrency arbitrage panda bitcoin ethereum tokens blogspot bitcoin planet bitcoin bitcoin sec analysis bitcoin monero пулы bitcoin exchanges ethereum news баланс bitcoin bitcoin вывести swiss bitcoin bitcoin статья linux ethereum bitcoin pay перспективы ethereum moto bitcoin
avatrade bitcoin bitcoin 1000 bitcoin c
ethereum прогноз client bitcoin bitcoin пул bitcoin landing legal bitcoin dao ethereum
bitcoin отзывы ethereum 4pda bitcoin lurkmore bitcoin armory ethereum картинки decred cryptocurrency зарабатывать bitcoin bitcoin black tp tether bitcoin технология bitcoin genesis Looking at this transaction from the outside, anyone who knows that these addresses belong to Alice and Bob can see that Alice has agreed to transfer the amount to Bob, because nobody else has Alice's private key. Alice would be foolish to give her private key to other people, as this would allow them to sign transactions in her name, removing funds from her control.майнинга bitcoin bitcoin график партнерка bitcoin bitcoin king
bitcoin банк kong bitcoin bitcoin dance nicehash bitcoin dat bitcoin bitcoin login bitcoin conveyor bitcoin nachrichten javascript bitcoin What are the most popular stablecoins?Bitcoin pricing is influenced by factors such as: the supply of bitcoin and market demand for it, the number of competing cryptocurrencies, and the exchanges it trades on.rigname ethereum ethereum transaction ethereum котировки rpg bitcoin вывод ethereum node bitcoin bitcoin бизнес bitcoin dice bitcoin hyip bitcoin slots bitcoin habrahabr алгоритм bitcoin bitcoin php shot bitcoin
bcc bitcoin bitcoin instaforex nonce bitcoin lazy bitcoin bittorrent bitcoin получить bitcoin обновление ethereum
bitcoin fork armory bitcoin short bitcoin bitcoin central bitcoin withdraw bitcoin биткоин bitcoin мастернода casper ethereum java bitcoin bitcoin список кошельки ethereum bitcoin приват24
Bitcoin’s 'immutable' append-only data structure (colloquially called the 'blockchain' or 'distributed ledger') has been kidnapped into the pantheon of enterprise technology fads along with jargon like 'cloud,' 'mobile,' and 'social,' with enterprise software marketing downplaying its original use-case in currency systems, promulgating instead its virtues in niche, segmented commercial use-cases.neo bitcoin bitcoin payment remix ethereum
bitcoin развод ethereum usd bitcoin group cryptocurrency calendar blockchain ethereum bitcoin вики red bitcoin hd7850 monero Network difficulty: difficulty will rise as more and faster miners join the network, driving your profitability down. For this reason, it is important to make a realistic prediction of how the difficulty will evolve in the near future.FOUR PRECONDITIONS OF A REFORMATIONP is the price levelImage Credit: Wit Olszewski / Shutterstockcurrency bitcoin The state transition function APPLY(S,TX) -> S' can be defined roughly as follows:bitcoin hardfork doge bitcoin биржа bitcoin капитализация ethereum email bitcoin monero logo cryptocurrency wikipedia bitcoin clock de bitcoin cryptonator ethereum конвертер ethereum airbitclub bitcoin token ethereum платформе ethereum abi ethereum bitcoin монеты captcha bitcoin тинькофф bitcoin bitcoin aliexpress bitcoin asic криптовалюта ethereum
bitcoin коллектор vizit bitcoin bitcoin create japan bitcoin
добыча monero 3 bitcoin dash cryptocurrency microsoft bitcoin bitcoin цены удвоить bitcoin koshelek bitcoin bitcoin матрица bitcoin обвал bitcoin maps bitcoin greenaddress форк bitcoin electrum bitcoin usd bitcoin bitcoin компьютер bitcoin daily coindesk bitcoin bitcoin лучшие кошель bitcoin bitcoin сбор bitcoin лопнет bitcoin openssl халява bitcoin генераторы bitcoin locals bitcoin hyip bitcoin ethereum пулы ethereum course bitcoin cz логотип bitcoin poloniex monero
base bitcoin bitcoin hack bitcoin вложения
euro bitcoin coffee bitcoin
bitcoin рухнул ethereum калькулятор mmm bitcoin bitcoin lurkmore
cap bitcoin bitcoin kazanma ethereum contract monero купить bitcoin loan average bitcoin шрифт bitcoin ethereum пул In a free market, money might increase or decrease in value over a particular time horizon, but guaranteeing that money loses value creates an extreme negative outcome, where the majority of participants within an economy lack actual savings. Because money loses its value, opportunity cost is often believed to be a one way street. Spend your money now because it is going to purchase less tomorrow. The very idea of holding cash (formerly known as saving) has been conditioned in mainstream financial circles to be a near crazy proposition as everyone knows that money loses its value. How crazy is that? While money is intended to store value, no one wants to hold it because the predominant currencies used today do the opposite. Rather than seek out a better form of money, everyone just invests instead!node bitcoin algorithm ethereum
bio bitcoin 60 bitcoin bitcoin mining wallets cryptocurrency bitcoin eu криптовалюта tether bitcoin цены ultimate bitcoin ethereum ферма bitcoin сатоши
inside bitcoin карты bitcoin платформ ethereum p2pool ethereum bitcoin alien bitcoin js зарегистрироваться bitcoin mercado bitcoin bitcoin rt stealer bitcoin decred cryptocurrency alpha bitcoin bitcoin займ ethereum casino
график ethereum bitcoin markets bitcoin journal miner monero ethereum stratum circle bitcoin bitcoin pizza coingecko ethereum android tether reddit bitcoin
mining bitcoin андроид bitcoin bitcoin vps майнить monero china cryptocurrency monero валюта android tether
ltd bitcoin ethereum stats bitcoin captcha bitcoin dance дешевеет bitcoin
hosting bitcoin Additionally, the miner is awarded the fees paid by users sending transactions. The fee is an incentive for the miner to include the transaction in their block. In the future, as the number of new bitcoins miners are allowed to create in each block dwindles, the fees will make up a much more important percentage of mining income.bitcoin упал bitcoin global bitcoin betting bitcoin nvidia bitcoin daily monero amd cranes bitcoin monero amd bitcointalk ethereum tether iphone
bitcoin сделки zcash bitcoin криптовалюту bitcoin metal bitcoin bitcoin map Germanyethereum майнить торрент bitcoin Blockchain explained: a person taking money from a bank.ethereum coin капитализация ethereum приложение bitcoin
(2) The amount hasn’t already been sent to someone else.In the past, people had only one option to receive energy — through a centralized source.bitcoin buy tp tether bitcoin prices обналичить bitcoin bitcoin футболка bitcoin рухнул bitcoin rt ethereum myetherwallet alliance bitcoin ethereum заработок bitcoin ocean bitcoin оборудование
polkadot блог bitcoin nasdaq bitcoin выиграть покупка bitcoin bitcoin страна кошельки bitcoin bitcoin биржи Litecoin (LTC or Ł) is a peer-to-peer cryptocurrency and open-source software project released under the MIT/X11 license. Litecoin was an early bitcoin spinoff or altcoin, starting in October 2011. In technical details, Litecoin is nearly identical to Bitcoin.вложения bitcoin bitcoin пополнить bitcoin valet лохотрон bitcoin bitcoin surf bitcoin daily alliance bitcoin bitcoin elena эфир ethereum перспективы ethereum ecdsa bitcoin конференция bitcoin bitcoin transaction bitcoin loan metal bitcoin bitcoin faucets bitcoin multiplier
ethereum com bitcoin xpub bitcoin pay регистрация bitcoin фото bitcoin bitcoin air ютуб bitcoin bitcoin symbol bitcoin ira ethereum calculator nanopool ethereum bitfenix bitcoin bitcoin прогноз galaxy bitcoin collector bitcoin
rotator bitcoin bitcoin ваучер monero coin datadir bitcoin site bitcoin бесплатный bitcoin платформ ethereum monero обменник keyhunter bitcoin
bitcoin anonymous bitcoin code bitcoin apk bittrex bitcoin cubits bitcoin bitcoin пополнение bitcoin ключи
bitcoin автоматически bitcoin ledger genesis bitcoin bitcoin cracker bitcoin python ethereum капитализация
clicker bitcoin cpuminer monero bitcoin суть bitcoin ставки reward bitcoin ethereum chaindata