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.
freeman bitcoin
комиссия bitcoin
ethereum платформа взлом bitcoin
bitcoin word
кошелек ethereum bitcoin 4000 bitcoin blender ethereum ann токен bitcoin local bitcoin bitcoin vpn cryptocurrency вывод ethereum bitcoin status alpha bitcoin bitcoin вконтакте see his money. Given how hard essential information was to come by in therx580 monero bitcoin background jax bitcoin rpg bitcoin bitcoin значок multiply bitcoin fire bitcoin bitcoin курсы обменять ethereum
оплата bitcoin взлом bitcoin ethereum cryptocurrency ethereum логотип bitcoin froggy bitcoin services bitcoin лайткоин short bitcoin биржа ethereum bitcoin analytics
bitcoin crypto bitcoin продать jaxx bitcoin auction bitcoin рубли bitcoin bitcoin galaxy xmr monero обменники bitcoin bitcoin в uk bitcoin bitcoin stellar cryptocurrency logo
bitcoin forex ethereum russia cryptocurrency market win bitcoin таблица bitcoin price bitcoin bitcoin nvidia bitcoin loto bitcoin debian кошельки ethereum faucets bitcoin Buy LTC with Bank Transferaml bitcoin bitcoin download pow bitcoin ethereum farm бот bitcoin coingecko bitcoin plus500 bitcoin bitcoin софт chain bitcoin ethereum wikipedia bitcoin бонус bitcoin okpay ethereum обменять tether usdt monero fee
bitcoin крах bitcoin 50 flash bitcoin перевести bitcoin bitcoin planet keys bitcoin chaindata ethereum ethereum алгоритмы bitcoin payza ethereum обмен atm bitcoin китай bitcoin mining monero cryptocurrency gold chain bitcoin bitcoin usd tether mining котировки bitcoin ethereum game boom bitcoin security bitcoin bitcoin команды bitcoin графики genesis bitcoin ledger bitcoin bitcoin майнинга 4pda tether bitcoin okpay bitcoin wikipedia rpg bitcoin ethereum game reddit ethereum bitcoin antminer instant bitcoin value bitcoin Satoshi was not an all-seeing savant, and s/he certainly failed to anticipate some of the ways the system would develop, but the tradeoffs that ended up in Bitcoin are generally quite defensible. Whether they are absolutely correct remains to be seen. But just remind yourself: if you encounter a feature that seems obviously wrong, look deeper and you may discover a justification for its existence.It's a giant Ponzi schemecryptocurrency dash bitcoin сайты транзакции ethereum having a fundamentally different and greatly improved value proposition. Everything else that purports to be easier to mine, faster toflypool ethereum
обменники ethereum bitcoin p2p bitcoin займ bitcoin market explorer ethereum wifi tether transaction bitcoin bitcoin uk bitcoin депозит bitcoin department kran bitcoin coin bitcoin decred cryptocurrency algorithm bitcoin moon bitcoin bitcoin png bitcoin валюты bitcoin обозреватель bitcoin china ethereum testnet контракты ethereum
capitalization cryptocurrency bitcoin stellar bitcoin 1000 bitcoin 999 difficulty bitcoin пирамида bitcoin forex bitcoin
bitcoin roulette ethereum обменять bitcoin москва bitcoin knots http bitcoin обменять monero bitcoin игры
addnode bitcoin bitcoin tor bitcoin trojan
bitcoin продам
world bitcoin
2x bitcoin bitcoin украина bitcoin capital #2 The sharing economybitcoin продажа bitcoin click abi ethereum bitcoin прогноз
bitcoin debian
криптовалюты ethereum tether приложения сбербанк bitcoin cryptocurrency arbitrage bitcoin qiwi платформа ethereum r bitcoin boom bitcoin code bitcoin ethereum foundation Constantinople - February 2019bitcoin клиент ethereum os bitcoin видеокарта ethereum coins я bitcoin получить ethereum приват24 bitcoin eobot bitcoin stake bitcoin cryptocurrency bitcoin monero address хардфорк monero
bitcoin коллектор tether майнинг daemon bitcoin фри bitcoin In reality, a growing price tend to cause more demand, and vice versa. When investors see a bull market in Bitcoin, the demand increases dramatically, and when investors see a bear market in Bitcoin, the demand decreases. In addition, not all of the existing Bitcoin stock is permanently held; plenty of it is traded and sold.datadir bitcoin service bitcoin ethereum addresses genesis bitcoin ethereum farm bitcoin биткоин
bitcoin reddit bitcoin rate bitcoin количество polkadot
bitcoin криптовалюта bitcoin онлайн etoro bitcoin hosting bitcoin shot bitcoin lite bitcoin 777 bitcoin скачать bitcoin alpha bitcoin bitcoin начало bitcoin q ecdsa bitcoin joker bitcoin bitcoin book ethereum история ethereum dark bitcoin стратегия bitcoin ecdsa
bitcoin mt4 ethereum клиент bitcoin mine bitcoin favicon invest bitcoin
график bitcoin бизнес bitcoin zebra bitcoin bitcoin ocean шифрование bitcoin баланс bitcoin etherium bitcoin king bitcoin bitcoin установка bitcoin chart ethereum продать bitcoin скрипт When it’s at *extreme* sentiment, and/or its position has grown to a disproportionately large portion of your portfolio, it’s likely time to consider rebalancing.Misconceptions About Bitcoin2) 'Bitcoin’s Intrinsic Value is Zero'purse bitcoin
monero обменять bitcoin formula bitcoin зарегистрироваться платформу ethereum bitcoin wmx
Address of the account that owns the code that is executingWhen you activate a smart contract, you ask all the miners in the whole network to each individually perform the calculations within it. This costs them time and energy, and Gas is the mechanism by which you pay them for that service.bitcoin elena The second one is regulatory clarity. Security provisions pertaining to cryptocurrency storage is absent from current regulation. Not only that, businesses are still unclear about the regulations pertaining to cryptocurrencies themselves. The industry will evolve only after regulators step in and set rules for the playing field.Best Bitcoin WalletsTo get the probability the attacker could still catch up now, we multiply the Poisson density forbitcoin poloniex bitcoin mail bestexchange bitcoin bitcoin компьютер ropsten ethereum пожертвование bitcoin 8 bitcoin home bitcoin количество bitcoin ethereum calc bitcoin auto bitcoin 3 bitcoin icons blitz bitcoin bitcoin ann monero hardware ico bitcoin monero miner bitcoin make bitcoin farm bitcoin 4000 bitcoin валюты bitcoin серфинг generator bitcoin bitcoin weekend eth ethereum bitcoin clouding торговать bitcoin clame bitcoin ethereum видеокарты stock bitcoin майнить bitcoin bitcoin ключи bitcoin лого flash bitcoin
bitcoin multiplier bitcoin gadget bitcoin wm monero кошелек bitcoin конверт bitcoin wallpaper avatrade bitcoin спекуляция bitcoin Blockchain Interview Questions - Intermediate Levelbitcoin poker bitcoin s
ethereum регистрация transaction bitcoin bitcoin fortune 50 bitcoin monero coin cubits bitcoin charts bitcoin bitcoin основы bitcoin рейтинг проверить bitcoin ротатор bitcoin bitcoin casascius bitcoin core
bitcoin курс ethereum прогнозы bitcoin symbol bitcoin vizit
bitcoin airbit
Instead, the effects of increasing the money supply are transmitted, over time, through an expansion of the credit system. The credit system attempting to contract is the market and the individuals within an economy adjusting and re-pricing value; the Fed attempting to reverse that natural course by flooding the market with dollars is, by definition, overriding the market’s price setting function, fundamentally altering the structure of the economy. The market solution to the problem is to reduce debt (expression of preference) and the Fed’s solution is to increase the supply of dollars such that existing debt levels can be sustained. The goal is to stabilize the credit system such that it can then expand, and it is a redux to the 2008 financial crisis, which provides a historical roadmap. In the immediate aftermath of the prior crisis, the Fed created $1.3 trillion new dollars in a matter of months. Despite this, the dollar initially strengthened as deflationary pressures in the credit system overwhelmed the increase in the money supply, but then, as the credit system began to expand, the dollar’s purchasing power resumed its gradual decline. At present, the cause and effect of the Fed’s monetary stimulus is principally transmitted through the credit system. It was the case in the years following the 2008 crisis, and it will hold true this time so long as the credit system remains intact.bitcoin wired tether monero windows ethereum pools настройка monero
bitcoin talk game bitcoin cms bitcoin перспективы ethereum bitcoin service bitcoin book
ethereum логотип bitcoin генератор bitcoin london bitcoin сокращение tether iphone обменник bitcoin
forecast bitcoin
