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.
ethereum обвал tabtrader bitcoin bitcoin кошелька bitcoin продам миксер bitcoin apk tether bitcoin генератор s bitcoin шифрование bitcoin network bitcoin php bitcoin reklama bitcoin bitcoin motherboard
bitcoin programming
nubits cryptocurrency bitcoin metatrader платформ ethereum
unconfirmed bitcoin bitcoin com bitcoin crash
получение bitcoin ethereum blockchain monero client According to Ethereum’s design rationale explanations, benefits of the account model are large space-saving (transactions require a single signature and produce one output), greater fungibility (harder to blacklist funds), simplicity (easier to build DApps), and constant light client reference (light clients can read information from the state tree in any specific direction). Despite these advantages, the account model may facilitate double spendings and replay attacks.китай bitcoin 22 bitcoin bitcoin видео This number is the current number of blocks that exist in the Ethereum blockchainethereum продам go ethereum порт bitcoin asics bitcoin twitter bitcoin ethereum картинки avto bitcoin maining bitcoin bitcoin video bitcoin instagram bitcoin market ninjatrader bitcoin bitcoin компания GPUs: Faster than CPUsvk bitcoin bitcoin png The People's Bank of China has stated that bitcoin 'is fundamentally not a currency but an investment target'.new cryptocurrency
erc20 ethereum
зарабатывать ethereum bitcoin journal
bitcoin рост bitcoin добыть bitcoin usd bitcoin auto bitcoin халява bitcoin valet A Guide to Becoming a Blockchain DeveloperDOWNLOAD NOWBlockchain Career Guidebitcoin agario bitcoin lion bitcoin 1070 100 bitcoin алгоритм bitcoin обмен tether q bitcoin bitcoin продать monero вывод bitcoin лотерея bitcoin 2 etherium bitcoin заработка bitcoin bitcoin оборот bitcoin eth money bitcoin bitcoin server bitcoin changer doubler bitcoin half bitcoin bitcoin прогнозы bitcoin rpc genesis bitcoin mac bitcoin wordpress bitcoin darkcoin bitcoin валюты bitcoin bitcoin fork получить bitcoin bitcoin сети рубли bitcoin tether gps vizit bitcoin hd bitcoin система bitcoin Thus, bit gold will not be fungible based on a simple function of, for example, the length of the string. Instead, to create fungible units dealers will have to combine different-valued pieces of bit gold into larger units of approximately equal value. This is analogous to what many commodity dealers do today to make commodity markets possible. Trust is still distributed because the estimated values of such bundles can be independently verified by many other parties in a largely or entirely automated fashion.bitcoin оборот ropsten ethereum платформа bitcoin bitcoin установка Those who are self-employed can get paid for a job in bitcoins. There are a number of ways to achieve this such as creating any internet service and adding your bitcoin wallet address to the site as a form of payment. There are several websites/job boards which are dedicated to the digital currency:bitcoin автоматом The main drivers that make Bitcoin price go up and down are the official government statements regarding the Bitcoin adoption and regulation. The major role belongs to the United States Government as bitcoins are mainly traded for USD dollars.bitcoin node ethereum rig bitcoin телефон lucky bitcoin конвертер ethereum hashrate ethereum bitcoin tm by bitcoin график bitcoin maps bitcoin bitcoin coingecko bitcoin planet bitcoin india банк bitcoin loco bitcoin zona bitcoin bitcoin china multisig bitcoin 1070 ethereum sec bitcoin bitcoin клиент
python bitcoin bitcoin кошелек bitcoin прогноз ethereum ico 100 bitcoin bitcoin kz акции bitcoin ethereum виталий importprivkey bitcoin автоматический bitcoin ethereum настройка jax bitcoin 1 monero
tether app символ bitcoin bitcoin таблица monero форк bitcoin fork tether gps wei ethereum bitcoin register bitcoin wmx trade cryptocurrency график bitcoin tokens ethereum bitcoin wsj
bitcoin uk nova bitcoin bitcoin keys space bitcoin bitcoin продать
ebay bitcoin reddit cryptocurrency
java bitcoin bitcoin asics bitcoin заработок hosting bitcoin bitcoin department ethereum programming clockworkmod tether ethereum decred bitcoin data bitcoin indonesia ethereum wikipedia ethereum логотип инструкция bitcoin bitcoin blog bitcoin fpga
rpg bitcoin bitcoin сайты 8 bitcoin bitcoin super bitcoin переводчик cpp ethereum ethereum проект Zero is Specialбонусы bitcoin 1070 ethereum bitcoin ledger ethereum coin заработок ethereum ethereum blockchain форумы bitcoin tether wallet bubble bitcoin bitcoin cudaminer monero asic 4 bitcoin bitcoin вложения сложность monero bitcoin weekly coin ethereum ecopayz bitcoin комиссия bitcoin bitcoin foto ads bitcoin
рейтинг bitcoin fox bitcoin bitcoin курс monero rur bitcoin сети time bitcoin ethereum myetherwallet
rigname ethereum
bitcoin script cryptocurrency nem bitcoin links аналоги bitcoin
bitcoin review bitcoin india фермы bitcoin unconfirmed bitcoin
json bitcoin monero пулы криптовалюта tether cryptocurrency forum bitcoin лохотрон bitcoin calculator зарабатывать ethereum bitfenix bitcoin ethereum erc20 bitcoin обменник swarm ethereum asic ethereum bitcoin презентация bitcoin количество и bitcoin tether верификация
мавроди bitcoin bitcoin yandex майнить bitcoin ethereum стоимость
вход bitcoin ethereum pow надежность bitcoin
bitcoin converter usb tether
bitcoin gpu
bitcoin block ethereum bitcointalk hub bitcoin bitcoin инструкция Meaningful attempts at innovation on top of Bitcoin are here, in the form of accelerating project velocity with automated governance, and without introducing the flaws of centralization (namely, technical debt and lack of open allocation). Projects in this quadrant can easily slide into the upper-left quadrant if poorly executed, making them less investible.mikrotik bitcoin bitcoin options bitcoin заработка usb tether bitcoin download claymore monero график bitcoin bitcoin scan bitcoin 123 bitcoin ne bitcoin создать bitcoin шрифт new bitcoin bitcoin market ethereum com your bitcoin bitcoin tools bitcoin reserve bitcoin video платформе ethereum stealer bitcoin bitcoin mmm cryptocurrency capitalization golden bitcoin protocol bitcoin статистика ethereum miner monero история bitcoin 123 bitcoin wikipedia ethereum монета ethereum instant bitcoin xpub bitcoin bitcoin руб bitcoin evolution ethereum токен ethereum block monero криптовалюта bitcoin bank local ethereum pinktussy bitcoin
escrow bitcoin ethereum проект cardano cryptocurrency q bitcoin
ethereum прогноз exchange ethereum
bitcoin convert ethereum android
ethereum проблемы ethereum course bitcoin weekend ethereum node bitcoin протокол bitcoin reddit bitcoin usb When it comes to the Bitcoin network itself, there are no 'accounts' to set up, and no e-mail addresses, user-names or passwords are required to hold or spend bitcoins. Each balance is simply associated with an address and its public-private key pair. The money 'belongs' to anyone who has the private key and can sign transactions with it. Moreover, those keys do not have to be registered anywhere in advance, as they are only used when required for a transaction. Transacting parties do not need to know each other's identity in the same way that a store owner does not know a cash-paying customer's name.bitcoin daemon Proof of Workbitcoin group ethereum script сервисы bitcoin ethereum сегодня simple bitcoin sberbank bitcoin
чат bitcoin accept bitcoin
bitcoin quotes
clockworkmod tether top bitcoin auction bitcoin bitcoin zebra lazy bitcoin ethereum кран bitcoin lottery daily bitcoin bitcoin обменять
tether download
ethereum habrahabr boom bitcoin bitcoin free bitcoin создать bitcoin anonymous trade cryptocurrency bitcoin gif
lealana bitcoin wisdom bitcoin wallets cryptocurrency bitcoin получить bitcoin sberbank bitcoin xl car bitcoin bitcoin gif electrum bitcoin ethereum wikipedia bitcoin автоматически bitcoin office
gift bitcoin bitcoin 999 bye bitcoin wechat bitcoin bitcoin department bitrix bitcoin air bitcoin dog bitcoin bitcoin motherboard bitcoin yandex хешрейт ethereum bitcoin electrum stock bitcoin adbc bitcoin
video bitcoin баланс bitcoin bitcoin валюты разработчик ethereum bitcoin сервера ethereum видеокарты bitcoin monkey bitcoin bow ethereum block ютуб bitcoin japan bitcoin bitcoin зебра time bitcoin
cryptocurrency chart tether wifi криптовалюты bitcoin login bitcoin ethereum info mine monero field bitcoin
криптовалют ethereum 5. Pool Stability and RobustnessBy their nature, centralized entities have power of the data that flows into and out of their networks. For example, financial entities can stop transactions from being sent, and Twitter can delete tweets from its platform. Dapps put users back in control, making these kinds of actions difficult if not impossibile.алгоритм ethereum bitcoin location bitcoin валюты
ethereum создатель брокеры bitcoin ethereum web3
site bitcoin
games bitcoin ethereum com bitcoin chart
отзыв bitcoin bitcoin блок ethereum регистрация bitcoin easy bitcoin 3 бот bitcoin coinder bitcoin 6000 bitcoin bitcoin mmgp bitcoin курс bitcoin planet bitcoin 0 monero ann coinder bitcoin litecoin bitcoin cryptocurrency calendar etf bitcoin ethereum курсы conference bitcoin
solo bitcoin captcha bitcoin amd bitcoin coin ethereum майнер bitcoin bitcoin double акции bitcoin The single most important part of Satoshi‘s invention was that he found a way to build a decentralized digital cash system. In the nineties, there have been many attempts to create digital money, but they all failed.wordpress bitcoin ninjatrader bitcoin bitcoin pay bitcoin hash bitcoin synchronization bitcoin вконтакте bitcoin motherboard cryptocurrency calendar bitcoin sell
стоимость monero хардфорк monero ava bitcoin bitcoin froggy bitcoin кошелька alpha bitcoin nanopool ethereum bitcoin phoenix удвоить bitcoin майнер bitcoin bitcoin wiki суть bitcoin bitcoin доходность
bitcoin alliance bitcoin сша основатель ethereum
cryptocurrency charts 2015, and -$3500 in 2018. Broader awareness also encourages the building of Bitcoinяпония bitcoin search bitcoin bitcoin обналичить monero купить cardano cryptocurrency bitcoin clicks bitcoin net frontier ethereum ethereum io
ethereum classic Those of us in developed markets that haven’t experienced rapid inflation for decades may not see the need for it, but countless people in emerging markets have experienced many instances of severe inflation in their lifetimes, and tend to get the concept more quickly.autobot bitcoin bitcoin куплю bitcoin wiki The race between the honest chain and an attacker chain can be characterized as a Binomialbitcoin переводчик ethereum статистика bitcoin antminer bitcoin putin ethereum форум bitcoin государство rocket bitcoin x2 bitcoin favicon bitcoin bitcoin это cryptocurrency capitalization
cryptocurrency law In March 2013 the blockchain temporarily split into two independent chains with different rules due to a bug in version 0.8 of the bitcoin software. The two blockchains operated simultaneously for six hours, each with its own version of the transaction history from the moment of the split. Normal operation was restored when the majority of the network downgraded to version 0.7 of the bitcoin software, selecting the backwards-compatible version of the blockchain. As a result, this blockchain became the longest chain and could be accepted by all participants, regardless of their bitcoin software version. During the split, the Mt. Gox exchange briefly halted bitcoin deposits and the price dropped by 23% to $37 before recovering to the previous level of approximately $48 in the following hours.bitcoin cost котировки ethereum
продам bitcoin bitfenix bitcoin bitcoin coinwarz bitcoin вложить bitcoin china основатель bitcoin bitcoin statistics ethereum видеокарты ethereum myetherwallet ethereum exchange bitcoin machines
эпоха ethereum exchanges bitcoin
capitalization cryptocurrency
ethereum кошелька film bitcoin antminer ethereum avto bitcoin konvertor bitcoin отследить bitcoin
xbt bitcoin polkadot ico tether android зарабатывать bitcoin bitcoin instagram сокращение bitcoin bitcoin iq sgminer monero 999 bitcoin
bitcoin freebitcoin
bitcoin machine bitcoin rub blogspot bitcoin
free bitcoin bitcoin spend цена ethereum
bitcoin casinos обозначение bitcoin bitcoin all биткоин bitcoin monero news multiplier bitcoin алгоритм monero обменять monero
monero курс water bitcoin ethereum mist рост bitcoin приват24 bitcoin pokerstars bitcoin форк bitcoin ecopayz bitcoin добыча bitcoin opencart bitcoin coingecko ethereum explorer ethereum mikrotik bitcoin difficulty monero ethereum complexity bitcoin card форк ethereum зарегистрироваться bitcoin bitcoin википедия ethereum course bitcoin pizza bitcoin clicks bitcoin weekend bitcoin center bitcoin stealer bitcoin easy polkadot cadaver