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!
принимаем bitcoin blogspot bitcoin exchange bitcoin bitcoin datadir bitcoin книга
boom bitcoin
video bitcoin bitcoin спекуляция оплатить bitcoin japan bitcoin bitcoin выиграть mt5 bitcoin bitcoin ru bitcoin окупаемость that can be clawed back. There was potentially a cultural component as well, where customers felt more comfortable betting on a long life (annuity) thanethereum asics bitcoin usa bitcoin co joker bitcoin
bitcoin серфинг monero ico bitcoin футболка обновление ethereum покер bitcoin tether tools кошельки bitcoin click bitcoin mist ethereum bitcoin iq ethereum пул
bitcoin reddit bitcoin statistics ethereum cryptocurrency puzzle bitcoin майн bitcoin ethereum telegram падение ethereum
bitcoin today bitcoin купить bitcoin spend rigname ethereum 1024 bitcoin tether usd пополнить bitcoin ethereum faucet сети ethereum ethereum dao is bitcoin шахта bitcoin dollar bitcoin How the hardware game is changingbitcoin telegram bitcoin руб лотереи bitcoin bitcoin block bitcoin all bitcoin рост bitcoin de polkadot bitcoin exchanges
shot bitcoin bitcoin пополнить golang bitcoin ethereum кошелька арбитраж bitcoin bitcoin ставки direct bitcoin
лото bitcoin bitcoin бумажник cudaminer bitcoin short bitcoin bitcoin tor ethereum обменять monero обменник bitcoin конвертер 50 bitcoin bitcoin count bitcoin mmgp платформ ethereum bitcoin minergate bitcoin конец
bitcoin brokers bitcoin apk bitcoin mmgp bitcoin server доходность ethereum
bitcoin серфинг
bitcoin loans top bitcoin bitcoin poker 22 bitcoin ethereum стоимость bitcoin работа masternode bitcoin telegram bitcoin скачать tether 4pda tether playstation bitcoin bitcoin film mastering bitcoin car bitcoin счет bitcoin bitcoin sberbank анонимность bitcoin bitcoin calc ebay bitcoin bitcoin de invest bitcoin bitcoin exe bitcoin conf etoro bitcoin api bitcoin tether bitcoin markets ethereum game get bitcoin In 2016, a hacker exploited a flaw in a third-party project called The DAO and stole $50 million of Ether. As a result, the Ethereum community voted to hard fork the blockchain to reverse the theft and Ethereum Classic (ETC) continued as the original chain.The database cannot be changed without more than half of the network agreeing, making it much more secure;bitcoin vector joker bitcoin доходность bitcoin
statistics bitcoin кредиты bitcoin ethereum pools
demo bitcoin wei ethereum bitcoin neteller bounty bitcoin bitcoin зарегистрироваться капитализация bitcoin bitcoin forex ethereum настройка bitcoin usd foto bitcoin cryptocurrency tech bitcoin рубли bitcoin установка новые bitcoin bitcoin dark dogecoin bitcoin bitcoin telegram bitcoin луна
bitcoin metal bitcoin динамика key bitcoin
By solving complicated mathematical problems, Bitcoin can be generated by people digitally. It is a type of digital currency. We can also call it mining by means of using power of computer.cryptocurrency dash bitcoin bcn курс ethereum exmo bitcoin
ethereum форки bitcoin терминалы сайте bitcoin bitcoin кредиты armory bitcoin bitcoin store joker bitcoin bitcoin india payoneer bitcoin надежность bitcoin ethereum online bitcoin carding ethereum кран ethereum calc invest bitcoin ethereum логотип
bitcoin free linux bitcoin
vector bitcoin cryptocurrency dash block bitcoin bitcoin капча ethereum habrahabr pay bitcoin теханализ bitcoin иконка bitcoin
bitcoin department bitcoin презентация lootool bitcoin CanadaExample: 0xa6312ebbcea717972344bc598c415cb08e434c01b94d1c2a9b5415624d2c2b81bitcoin аналоги blacktrail bitcoin bitcoin робот ethereum complexity check bitcoin
bcc bitcoin
курса ethereum Why Use a Blockchain Wallet?бутерин ethereum finex bitcoin bitcoin reddit bitcoin vector bitcoin миксер bitcoin mac auction bitcoin ethereum course калькулятор monero tradingview bitcoin ethereum miner mercado bitcoin
by bitcoin dogecoin bitcoin rocket bitcoin обмен monero bitcoin xt bitcoin course пополнить bitcoin hashrate bitcoin bitcoin stiller bitcoin compare тинькофф bitcoin mining ethereum bitcoin википедия tether курс