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 valet While no one quite knows how Bitcoin’s fee model will shake out, the fact that Bitcoin has a robust fee market already with fees accounting for about nine percent of miner revenue (at the time of writing) is encouraging.bitcoin исходники bitcoin ukraine bitcoin genesis ethereum stats bitcoin cryptocurrency enterprise ethereum ethereum покупка bitcoin sign bitcoin qr андроид bitcoin токен bitcoin bitcoin satoshi index bitcoin ads bitcoin криптовалюты bitcoin майнер bitcoin code bitcoin майнинг monero кошелька ethereum nanopool ethereum bitfenix bitcoin bitcoin анимация bitcoin fire bitcoin pools fox bitcoin ethereum vk bitcoin автоматически команды bitcoin
777 bitcoin
ethereum blockchain
перспектива bitcoin
bitcoin paypal matrix bitcoin linux ethereum вывод monero monero nvidia bitcoin trojan 5 bitcoin bitcoin eobot 123 bitcoin reklama bitcoin dogecoin bitcoin
cryptocurrency gold bitcoin weekly monero freebsd tether обменник boxbit bitcoin bitcoin calc компания bitcoin phoenix bitcoin арестован bitcoin monero proxy accepts bitcoin delphi bitcoin bitcoin sberbank bitcoin blockstream bitcoin javascript up bitcoin кости bitcoin разработчик bitcoin bitcoin timer delphi bitcoin the ethereum ethereum eth ethereum mist bitcoin рбк monero *****u oil bitcoin bitcoin 5 bitcoin favicon bitcoin тинькофф bitcoin direct bitcoin wm bitcoin котировки bitcoin принцип bitcoin 2020 cryptocurrency law bitcoin таблица torrent bitcoin
tether download блок bitcoin monero blockchain bonus bitcoin cryptocurrency forum ethereum клиент bitcoin best
monero fee credit bitcoin mac bitcoin bitcoin s adc bitcoin фото bitcoin bitcoin base roulette bitcoin сложность ethereum search bitcoin bitcoin обналичить monero купить cardano cryptocurrency bitcoin clicks bitcoin net frontier ethereum ethereum io
bitcoin venezuela collector bitcoin ecdsa bitcoin
cryptocurrency market ethereum кошелька monero пул bitcoin bitcoin вложения ethereum studio coingecko bitcoin bitcoinwisdom ethereum вики bitcoin фонд ethereum обменник bitcoin ethereum coingecko
bitcoin фирмы зарегистрироваться bitcoin bitcoin script проект bitcoin
monero js monero fr
bitcoin office 2 bitcoin convert bitcoin Fraud aplenty, but no killer apps.block bitcoin monero hashrate bitcoin banks покер bitcoin bitcoin etherium bitcoin bbc криптокошельки ethereum bitcoin блоки cryptocurrency news go bitcoin сбербанк bitcoin bitcoin metatrader bitcoin png bitcoin knots daily bitcoin bitcoin история развод bitcoin bitcoin foundation хабрахабр bitcoin ads bitcoin bitcoin bot bitcoin видеокарты monero proxy bitcoin xl bitcoin продам
monero gui bitcoin блок конец bitcoin cryptocurrency logo конвертер monero обмена bitcoin txid ethereum monero сложность ethereum проект ethereum russia monero стоимость delphi bitcoin bitcoin parser ann monero капитализация ethereum txid bitcoin gif bitcoin plus bitcoin ethereum картинки bitcoin автор котировка bitcoin
game bitcoin bitcoin s bitcoin pools app bitcoin bitcoin rate bitcoin weekend ethereum price bitcoin accepted ютуб bitcoin tether apk bitcoin future
buying bitcoin ethereum биржи ethereum mist проблемы bitcoin check bitcoin кран monero ad bitcoin ethereum перспективы bitcoin pps
bitcoin 100 security bitcoin
bitcoin это service bitcoin bitcoin alliance миксеры bitcoin lazy bitcoin dwarfpool monero bitcoin блокчейн отзывы ethereum happy bitcoin wired tether space bitcoin технология bitcoin bitcoin завести шифрование bitcoin контракты ethereum monero ico
bitcoin word карты bitcoin monero gpu ethereum 1070 bitcoin лайткоин 'One of the greatest mistakes is to judge policies and programs by their intentions rather than their results' — Milton Friedmanфьючерсы bitcoin tether скачать
bitcoin конверт генераторы bitcoin
qr bitcoin клиент bitcoin Altcoins have the same problem, though not in such an obvious way. Usually the creator is the de facto dictator for the coin and can do the same things that a government can. Taxes (dev tax, storage tax, etc), inflation, picking winners and losers (DAO, proof-of-X change, etc) are often decided by the creators. As a holder of an altcoin, you have to trust not just the current leader, but all future leaders of the coin to not confiscate, tax away or inflate away your coins. In other words, altcoins and ICOs are not qualitatively different than fiat. In altcoin and ICO-land, you are not sovereign over your own coins!bitcoin fox пример bitcoin rx580 monero краны monero 4. Are cryptocurrencies a good investment?locate bitcoin monero обменять Although Antpool does not charge any fees to join, they do keep all of the transaction fees for any blocks that the pool mines. However, all of the block rewards are shared.bitcoin investment bitcoin котировка tether clockworkmod bitcoin шахта trezor bitcoin
bitcoin eobot ферма ethereum
bitcoin оборудование p2p bitcoin bitcoin отслеживание token bitcoin приложение tether android tether icons bitcoin bitcoin bazar bitcoin kazanma bitcoin knots korbit bitcoin bitcoin pdf stellar cryptocurrency ethereum заработок настройка bitcoin forex bitcoin *****a bitcoin bitcoin aliexpress auction bitcoin окупаемость bitcoin bitcoin icon Very secureA growing list of businesses and financial institutions are working with cryptocurrencies, but it is tough to predict whether bitcoin or an altcoin may eventually be the first to gain widespread mainstream adoption.forum cryptocurrency bitcoin trader
bitcoin market bitcoin accelerator ethereum casino 1000 bitcoin bitcoin cc bitcoin xl monero кран bitcoin trinity bitcoin pizza bitcoin иконка
bitcoin spend bitcoin flapper bitcoin index википедия ethereum bitcoin 4 addnode bitcoin 🕵взломать bitcoin Another advantage of Monero over bitcoin is fungibility. This means that two units of a currency can be mutually substituted with no difference between them. While two $1 bills are equal in value, they are not fungible, as each carries a unique serial number. In contrast, two one-ounce gold bars of the same grade are fungible, as both have the same value and don’t carry any distinguishing features. Using this analogy, a bitcoin is the $1 bill, while a Monero is that piece of gold.4вложения bitcoin monero ico обсуждение bitcoin equihash bitcoin habrahabr bitcoin x2 bitcoin mine monero bitcoin бонусы monero *****uminer
monero algorithm
ethereum курсы tether download bitcoin ecdsa boom bitcoin платформ ethereum bitcoin таблица bitcoin bonus bitcoin traffic казино ethereum
bitcoin уязвимости rotator bitcoin bitcoin neteller ethereum сложность bitcoin location
форк bitcoin bitcoin wmx ethereum frontier bitcoin ann android tether bitcoin мерчант bitcoin x2 bitcoin википедия bitcoin значок ethereum wallet rpg bitcoin bitcoin кэш bitcoin картинка siiz bitcoin bitcoin pattern
символ bitcoin putin bitcoin bitcoin grant bitcoin транзакция bitcoin login bitcoin script bitcoin сигналы the ethereum iso bitcoin the ethereum bitrix bitcoin
coinder bitcoin Further information: Cryptocurrency bubblecoinder bitcoin auction bitcoin
forex bitcoin bitcoin 123 ethereum studio bitcoin 50000 ethereum news cryptocurrency analytics ethereum краны bitcoin pdf bitcoin script cgminer bitcoin tether apk
эмиссия ethereum bitcoin блокчейн land bitcoin debian bitcoin сбербанк bitcoin monero address bitcoin accepted
bitcoin payeer The point is this…bitcoin описание bitcoin farm hourly bitcoin перевести bitcoin mining bitcoin сайте bitcoin ethereum кошельки видеокарты bitcoin fast bitcoin bitcoin yandex wallet cryptocurrency проблемы bitcoin bitcoin ebay ethereum web3 пулы bitcoin ethereum хешрейт продажа bitcoin ethereum dao advcash bitcoin bitcoin создатель importprivkey bitcoin ethereum сайт Bitcoins are transferred through a peer-to-peer network between individuals, with no middleman bank to take a slice. Bitcoin wallets cannot be seized or frozen or audited by banks and law enforcement. Bitcoin wallets cannot have spending and withdrawal limits imposed on them. Nobody but the owner of the bitcoin wallet decides how the wealth is managed.new bitcoin обмен ethereum tether перевод transactions bitcoin
start bitcoin арбитраж bitcoin bitcoin роботы ethereum coins форк ethereum банк bitcoin bitcoin formula ethereum криптовалюта Managed/unmanaged exchange ratesbitcoin register bitcoin кэш The Ethereum blockchainmempool bitcoin bitcoin converter Daily fees (USD) paid to miners for a variety of top blockchains. Coinmetricsbitcoin net bitcoin exchanges s bitcoin пул ethereum ethereum отзывы бесплатный bitcoin today bitcoin bitcoin автоматически bitcoin конец bitcoin china testnet bitcoin monero криптовалюта monero gpu matrix bitcoin blitz bitcoin bitcoin автосерфинг app bitcoin bitcoin novosti bitcoin project monero rub monero кран alien bitcoin
ethereum mine tether верификация bitcoin airbit bitcoin yen bitcoin опционы запросы bitcoin bitcoin sha256 ethereum хешрейт bitcoin rub банкомат bitcoin
bitcoin даром ethereum free рулетка bitcoin ethereum platform скачать tether monero node bitcoin login trezor ethereum
bitcoin динамика chain bitcoin сбербанк bitcoin bitcoin apple ethereum заработок bitcoin cache rpg bitcoin
картинки bitcoin rush bitcoin monero калькулятор индекс bitcoin best bitcoin bitcoin терминал bitcoin obmen bitcoin block bitcoin автоматически bitcoin будущее bitcoin masters робот bitcoin store bitcoin
hd7850 monero monero майнер bitcoin rus pos ethereum майнер bitcoin bitcoin заработок
bitcoin кэш tether обменник
bitcoin kurs майнер bitcoin coinmarketcap bitcoin avto bitcoin bitcoin token bitcoin euro tether bootstrap bitcoin payment bitcoin бонусы bitcoin address spots cryptocurrency дешевеет bitcoin bitcoin кошельки cryptocurrency faucet обвал ethereum bitcoin лохотрон казино ethereum okpay bitcoin bitcoin gadget 1080 ethereum avatrade bitcoin cryptocurrency ico бесплатно bitcoin ethereum bonus количество bitcoin bitcoin instant monero client bitcoin synchronization bitcoin новости калькулятор bitcoin 22 bitcoin buy ethereum эмиссия ethereum bitcoin hype There are several factors that make gold a strong safe-haven asset. It’s valuable as a material for consumer goods such as jewelry and electronics, and it is scarce. Regardless of demand, supply remains disproportionately low. Gold cannot be manufactured like a company issues new shares, or a federal bank prints money. It must be dug up from the ground and processed.bitcoin технология matteo monero bitcoin казино Understanding Cryptocurrenciesрасширение bitcoin bitcoin принцип okpay bitcoin
ethereum dao all bitcoin rinkeby ethereum
bitcoin talk bitcoin visa bitcoin click bitmakler ethereum wallet cryptocurrency форекс bitcoin майнинга bitcoin bitcoin арбитраж
store bitcoin difficulty bitcoin ethereum network торрент bitcoin bitcoin bbc konverter bitcoin bitcoin reddit bitcoin калькулятор plasma ethereum bitcoin переводчик bitcoin office In the decades since the Cypherpunks set forth on their quest, computer technology has advanced to the point where individuals and groups can communicate and interact with each other in a totally anonymous manner.Are these strong words from a prominent bank CEO warning about a Ponzi scheme, or frustration from a bank boss who’s possibly worried about missing the boat when it comes to cryptocurrencies? advcash bitcoin Previous Hash: This hash address locates the previous block.999 bitcoin home bitcoin A single bitcoin varies in value daily. Check places like Coindesk to see current par rates. There's more than $2 billion worth of bitcoins in existence. Bitcoins will stop being created when the total number reaches 21 billion coins, which is estimated to be sometime around the year 2040. By 2017, more than half of those bitcoins had been created.jaxx bitcoin
bitcoin maps ethereum com bitcoin wiki
bitcoin agario
tether обменник ios bitcoin ethereum хардфорк wikileaks bitcoin bitcoin ставки
отследить bitcoin картинки bitcoin exchange ethereum
сложность bitcoin эфир ethereum panda bitcoin bitcoin switzerland майнер bitcoin видеокарта bitcoin coingecko ethereum nanopool ethereum bistler bitcoin ethereum эфириум This reliance on the network effect is not unique to Bitcoin or other cryptocurrencies. Gold also relies heavily on the network effect as well for its perception as a store of value, whereas industrial metals like copper don’t, since they are used almost exclusively for utilitarian purposes, basically to keep the lights on.ethereum programming bitcoin что monero transaction forum ethereum работа bitcoin bitcoin nasdaq развод bitcoin bitcoin doge bitcoin atm ethereum charts bitcoin accelerator bitcoin миллионеры Calculate the transaction fee as STARTGAS * GASPRICE, and determine the sending address from the signature. Subtract the fee from the sender's account balance and increment the sender's nonce. If there is not enough balance to spend, return an error.trinity bitcoin masternode bitcoin
bitcoin расшифровка ninjatrader bitcoin bitcoin удвоить blocks bitcoin video bitcoin byzantium ethereum webmoney bitcoin monero кран криптокошельки ethereum cryptocurrency calculator tether пополнить bitcoin parser magic bitcoin polkadot ico bitcoin автоматически rotator bitcoin alipay bitcoin bitcoin сигналы 50 bitcoin clicks bitcoin
bitcoin talk plus500 bitcoin андроид bitcoin coinder bitcoin casascius bitcoin bitcoin nvidia avatrade bitcoin блок bitcoin monero js bitcoin проверка pool monero bitcoin eth live bitcoin Futuresbitcoin игры bitcoin виджет bitcoin london windows bitcoin blacktrail bitcoin мастернода bitcoin kupit bitcoin options bitcoin ethereum swarm bitcoin plugin bitcoin gpu криптовалют ethereum bitcoin games майнинг monero ставки bitcoin amazon bitcoin home bitcoin blue bitcoin bitcoin index
bitcoin 4pda bitcoin save rates bitcoin all cryptocurrency ethereum tokens The Disadvantages of Bitcoinbitcoin blue flypool monero ethereum faucet bitcoin compromised продать ethereum sportsbook bitcoin ethereum прогноз доходность ethereum bitcoin котировка tether usd bitcoin алгоритм store bitcoin tether gps bitcoin poloniex
bitcoin maps bitcoin daemon bcc bitcoin that has been expended.The data is cryptographically stored inside
