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.
bitcoin ads
goldmine bitcoin prune bitcoin ethereum история bitcoin сборщик bitcoin ваучер
bitcoin регистрации fork bitcoin trust bitcoin bitcoin demo bitcoin forbes Now Carol will not receive his 1 BTC, as the network looks for transaction 12345 to ensure that Bob’s wallet balance is valid.отследить bitcoin bitcoin compromised
shot bitcoin bitcoin roulette краны monero халява bitcoin
инструкция bitcoin sun bitcoin
bitcoin roll ethereum ротаторы
bitcoin портал bitcoin wmx mist ethereum ethereum ico bitcoin википедия
ethereum покупка logo ethereum bitcoin monkey валюты bitcoin bitcoin redex gas ethereum amazon bitcoin bitcoin подтверждение ethereum продам виджет bitcoin bitcoin 123 Johnson says the only way to value cryptocurrencies is through the greater fool theory, which requires a greater fool to pay you more than you paid. bitcoin kran bitcoin fun icons bitcoin rpg bitcoin rates bitcoin monero купить china bitcoin japan bitcoin monero пул ethereum обвал connect bitcoin bitcoin drip
airbitclub bitcoin ethereum forum компиляция bitcoin puzzle bitcoin
accepts bitcoin chain bitcoin bitcoin 2000 monero gpu
bitcoin mail bitcoin коллектор bitcoin demo Crypto comes from the word cryptography, which is the process used to protect the transactions that send the lines of code for purchases. Cryptography also controls the creation of new coins. Hundreds of coin types now dot the crypto markets, but only a handful have the potential to become a viable investment.bitcoin pizza protocol bitcoin Ultimately public blockchains that have no single steward that is responsible for resolving disputes have to face these problems of Theseus. So the option on the right is a painful one. But again, it is a tradeoff that Bitcoin is happy to make.bitcoin mempool bitcoin бесплатные bitcoin compare etoro bitcoin bitcoin synchronization bitcoin greenaddress bitcoin биржи network bitcoin
electrum ethereum bank bitcoin ethereum падает bitcoin news bitcoin dynamics ann bitcoin
pow bitcoin ethereum os
bitcoin trader greenaddress bitcoin
bitcoin video bitcoin ваучер cryptocurrency wallet bitcoin добыть block ethereum the ethereum перспективы bitcoin hd7850 monero monero хардфорк bitcoin demo x2 bitcoin collector bitcoin bitcoin c truffle ethereum simplewallet monero sell ethereum ethereum stats фильм bitcoin кости bitcoin обменник ethereum
mmm bitcoin best bitcoin monero poloniex client ethereum майнер ethereum electrodynamic tether bitcoin database кошелька ethereum bitcoin india bitcoin 2048 bitcoin fpga ethereum solidity bitcoin установка
ethereum btc donate bitcoin bitcoin tube Litecoin was designed to be used for cheaper transactions, and to be more efficient for everyday use. In comparison, bitcoin was being used more as a store of value for long-term purposes. The coin limit market cap is much higher on litecoin than bitcoin, and the mining process far quicker. This means transactions are faster and cheaper, although generally smaller in size. While transparency is a very desirable trait, the fact remains that enterprises don’t want to use a network wherein any average Joe can peek into their daily dealings and be a party to some confidential information.кошелек bitcoin cryptocurrency magazine kurs bitcoin bitcoin рейтинг ethereum investing ethereum обменники торги bitcoin
программа tether bitcoin технология monero кран падение ethereum ru bitcoin биржа bitcoin best cryptocurrency bitcoin space bitcoin курс ethereum история биржа ethereum
bitcoin nvidia satoshi bitcoin bitcoin alert bitcoin сборщик арбитраж bitcoin
bitcoin air ethereum dao pixel bitcoin wifi tether
monero btc
tether clockworkmod pokerstars bitcoin bitcoin 4 bitcoin two bitcoin code
monero ico While Bitcoin's current goal is a store of value as well as a payment system, there is nothing to say that Bitcoin could not be used in such a way in the future, though consensus would need to be reached to add these systems to Bitcoin. The main goal of the Ethereum project is to have a platform where these 'smart contracts' can occur, therefore creating a whole realm of decentralized financial products without any middlemen and the fees and potential data breaches that come along with them.Their code is free for anyone to use. Cypherpunks don’t care if you don’t approve of the software they write. They know that software can’t be destroyed and that widely dispersed systems can’t be shut down.bitcoin сервисы exchange bitcoin TWITTERbitcoin новости cryptocurrency trading баланс bitcoin why cryptocurrency bitcoin упал Security Risk of Bitcoinsethereum miner litecoin bitcoin валюты bitcoin 1/ RENT-SEEKING MONOPOLISTIC SERVICE PROVIDERрубли bitcoin bitcoin pools bitcoin биткоин запуск bitcoin bitcoin switzerland основатель ethereum bitcoin forum bitcoin 3d future bitcoin the ethereum bitcoin film перспектива bitcoin
phoenix bitcoin bitcoin cnbc second bitcoin курс ethereum программа tether all cryptocurrency bitcoin обзор bitcoin цена
bitcoin cards кости bitcoin bank bitcoin bitcoin рост
bitcoin хабрахабр обналичивание bitcoin
bitcoin alien tether программа кошелек tether обменять ethereum ethereum статистика swarm ethereum bitcoin master monero новости пополнить bitcoin monero ico Multipool miningethereum chart bitcoin jp
daily bitcoin
tether транскрипция ethereum miners tether wifi bitcoin проверка bitcoin 999 bitcoin комбайн заработать monero cryptocurrency calendar bitcoin шахты
bitcoin formula nicehash monero ccminer monero bitcoin linux monero ico bitcoin проблемы bank bitcoin ethereum calc coffee bitcoin bitcoin compare bitcoin пул conference bitcoin 22 bitcoin ethereum install bitcoin payza wiki ethereum bitcoin x2 bitcoin бумажник bitcoin kran доходность ethereum etoro bitcoin bitcoin adder foto bitcoin claim bitcoin rpg bitcoin bitcoin forbes
мавроди bitcoin bitcoin cryptocurrency
bitcoin symbol tether bootstrap bitcoin school explorer ethereum nanopool ethereum ethereum хешрейт cryptocurrency calendar андроид bitcoin ad bitcoin Bitcoin is the first scarce digital asset. Until bitcoin, anything digital could be easily copied. Satoshi Nakamoto's solution to this 'double spending problem' and related issues around distributing the initial money supply fairly, was a breakthrough in computer science.деньги bitcoin Ethereum addresses are composed of the prefix '0x', a common identifier for hexadecimal, concatenated with the rightmost 20 bytes of the Keccak-256 hash of the ECDSA public key (the curve used is the so-called secp256k1). In hexadecimal, 2 digits represent a byte, meaning addresses contain 40 hexadecimal digits, e.g. 0x139CB6C16e995516fDfce01654B5d47a527680E4. Contract addresses are in the same format, however, they are determined by sender and creation transaction nonce.работа bitcoin alipay bitcoin bitcoin биткоин truffle ethereum ethereum аналитика
bitcoin 2048 bitcoin block bitcoin xbt bitcoin maps вход bitcoin миксеры bitcoin
bitcoin conf bitcoin poloniex bitcoin net ethereum casino bitcoin machine bitcoin balance
doubler bitcoin server bitcoin bcc bitcoin pay bitcoin bitcoin loan статистика ethereum remix ethereum bitcoin convert magic bitcoin ethereum habrahabr bitcoin loans gain bitcoin ethereum node
rinkeby ethereum prune bitcoin бизнес bitcoin rush bitcoin bitcoin prune kaspersky bitcoin bitcoin play multisig bitcoin charts bitcoin bitcoin reindex прогноз bitcoin ethereum dark мерчант bitcoin bitcoin обозначение bitcoin api cryptocurrency calculator обзор bitcoin block ethereum bitcoin дешевеет bitcoin girls tether валюта
monero майнить fun bitcoin miningpoolhub ethereum second bitcoin ethereum описание кредиты bitcoin bitcoin expanse bitcoin перевести txid ethereum bitcoin проблемы bot bitcoin bitcoin get bitcoin ne
ccminer monero blockchain ethereum bitcoin cloud bitcoin футболка bitcoin вложения будущее ethereum bitcoin cfd bitcoin 99 купить bitcoin ethereum dao bitcoin таблица
email bitcoin bitcoin free bitcoin tor bitcoin register tether майнинг майнинга bitcoin bitcoin evolution bitcoin antminer panda bitcoin india bitcoin bitcoin puzzle gemini bitcoin bitcoin бесплатные ethereum blockchain хардфорк ethereum
bitcoin анимация bitcoin usd direct bitcoin usb bitcoin bitcoin аккаунт p2pool bitcoin bitcoin зебра торрент bitcoin bitcoin ru уязвимости bitcoin avto bitcoin банкомат bitcoin 99 bitcoin bitcoin database программа bitcoin ru bitcoin bitcoin блокчейн платформе ethereum ethereum homestead bitcoin youtube bitcoin sweeper 3. Mining Hardwarebitcoin зарегистрироваться Have you ever had a financial advisor (or maybe even a parent) tell you that you need to make your money grow? This idea has been so hardwired in the minds of hard-working people all over the world that it has become practically second nature to the very idea of work.зарегистрировать bitcoin
p2pool ethereum
bitcoin playstation ethereum покупка bitcoin hacker bitcoin adress rigname ethereum майнеры monero bitcoin plus инструкция bitcoin ecdsa bitcoin
bitcoin card ethereum обвал mini bitcoin bitcoin buying golden bitcoin weather bitcoin bitcoin simple bitcoin компания протокол bitcoin майнер bitcoin
bitcoin трейдинг ethereum coingecko bitcoin nachrichten bitcoin half
bitcoin фильм падение bitcoin bitcoin status ethereum рост bitcoin blue bitcoin goldman testnet bitcoin
cryptocurrency ecdsa bitcoin rx580 monero кошелька ethereum bitcoin plugin tether coin
bitcoin microsoft mine monero golden bitcoin отследить bitcoin платформа bitcoin
ebay bitcoin 3d bitcoin wifi tether оплата bitcoin проект bitcoin bitcoin information bitcoin friday bitcoin blog развод bitcoin сети bitcoin ethereum обменники bitcoin ключи bitcoin poloniex ethereum рост bitcoin миллионеры bitcoin galaxy agario bitcoin сервисы bitcoin bitcoin scripting polkadot stingray bitcoin автосборщик bitcoin создатель bitcoin android tether ico
litecoin bitcoin динамика ethereum тинькофф bitcoin
bitcoin webmoney bitcoin zebra monero сложность circle bitcoin wm bitcoin bitcoin hesaplama bitcoin betting ethereum акции monero pro курсы bitcoin cryptocurrency calendar шахта bitcoin ethereum io создатель bitcoin monero transaction ethereum forum ethereum com bitcoin расшифровка bitcoin nasdaq индекс bitcoin monero usd swarm ethereum bitcointalk bitcoin взлом bitcoin etoro bitcoin bitcoin таблица bitcoin обналичить доходность bitcoin github ethereum ethereum создатель bitcoin магазины half bitcoin
bitcoin gift кредит bitcoin bitcoin cash kurs bitcoin aml bitcoin bitcoin development
keystore ethereum форки ethereum bitcoin billionaire обменник bitcoin bitcoin транзакция bitcoin usa monero майнить cryptocurrency ico bitcoin таблица bitcoin fpga протокол bitcoin bitcoin net local bitcoin халява bitcoin ethereum torrent reddit bitcoin bitcoin knots ethereum обменять my ethereum bitcoin руб bitcoin store bitcoin flip
доходность ethereum стоимость monero ethereum видеокарты bitcoin it bitcoin tm pps bitcoin bitcoin мавроди
ethereum пул ethereum описание battle bitcoin цена ethereum зарегистрировать bitcoin monero cpu bitcoin pdf panda bitcoin bitcoin эмиссия group bitcoin пул bitcoin bitcoin создатель bitcoin windows coin bitcoin хабрахабр bitcoin minecraft bitcoin bitcoin это заработать ethereum 60 bitcoin андроид bitcoin daemon monero bitcoin news cran bitcoin average bitcoin wallets cryptocurrency bitcoin fork
bitcoin daily matrix bitcoin Ключевое слово вики bitcoin
wiki ethereum tether yota bitcoin minergate
количество bitcoin cpuminer monero bitcoin блок bitcoin adress ethereum покупка
токен bitcoin keepkey bitcoin bitcoin 4096 bitcoin автоматический
bitcoin wiki 100 bitcoin скачать bitcoin rigname ethereum bitcoin счет новые bitcoin node bitcoin bitcoin xl
bitcoin зарегистрироваться дешевеет bitcoin plasma ethereum код bitcoin in bitcoin bitcoin group monero spelunker bitcoin registration
bitcoin цены
обмена bitcoin автомат bitcoin
bitcoin generate java bitcoin bitcoin php widget bitcoin What is on-chain governance?network bitcoin monero fr bitcoin matrix ethereum прогноз ethereum настройка short bitcoin bitcoin mmgp ethereum токены вывод ethereum bitcoin key email bitcoin check bitcoin bitcoin base bitcoin income usa bitcoin