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!
ethereum история Decentralization is also not easily achieved, and altcoins have not figured out how to guide their coin in that direction. Even the idea of guiding a coin in a direction suggests a centralized coin! It’s hard to imagine creators of valuable coins wanting to decentralize since they are incentivized emotionally, economically as well as socially to keep power over their creations.opencart bitcoin ethereum platform bitcoin png bitcoin carding bitcoin регистрации bitcoin price eos cryptocurrency bitcoin trust кран bitcoin bitcoin vps bitcoin blue
ethereum code
bitcoin математика konvert bitcoin bitcoin hardfork bitcoin robot опционы bitcoin ethereum project перспектива bitcoin
bitcoin mixer iobit bitcoin usdt tether майнер bitcoin bitcoin loan bitcoin продажа bitcoin investment
torrent bitcoin bitcoin чат bitcoin change bitcoin count ethereum pools ethereum кошельки bitcoin forums tether bitcointalk byzantium ethereum котировки bitcoin cryptocurrency trading nicehash bitcoin кости bitcoin rx560 monero bitcoin paypal цена ethereum multiply bitcoin Earning cryptocurrencies is not only about mining Bitcoin (BTC) anymore. Bitcoin is a proof-of-work (PoW) blockchain where new BTC are generated through an energy-intensive process of solving mathematical tasks, known as 'mining.' Many newer blockchains instead use proof-of-stake (PoS) algorithms which require significantly less energy. The correctness of transactions in PoS blockchains is attested to by people who lock up a certain amount of the cryptocurrency in the protocol. This process, called 'staking' allows the cryptocurrency owners to earn a staking reward for their participation in the network.ethereum claymore segwit2x bitcoin bitcoin doubler ethereum telegram
5 bitcoin bitcoin fox roulette bitcoin bitcoin аккаунт bitcoin png bitcoin office
blake bitcoin
bitcoin minecraft bitcoin развод tether coinmarketcap цены bitcoin играть bitcoin transactions bitcoin secp256k1 ethereum кошельки bitcoin пирамида bitcoin bitcoin roll
цена bitcoin сеть bitcoin магазин bitcoin platinum bitcoin бот bitcoin андроид bitcoin tor bitcoin bitcoin 3d monero ann rinkeby ethereum monero free переводчик bitcoin технология bitcoin bitcoin delphi bitcoin fasttech cpuminer monero транзакция bitcoin invest bitcoin exchange ethereum bitcoin analytics
bitcoin main ethereum complexity bitcoin украина case bitcoin
script bitcoin bitcoin get надежность bitcoin bitcoin club 99 bitcoin bitcoin пополнение bitcoin trader bitcoin wm
avto bitcoin amazon bitcoin monero hardware заработать monero bitcoin комиссия bitcoin loto 2. It’s All About the Benjaminsфорумы bitcoin tether bootstrap finney ethereum ethereum пулы bitcoin 0 bitcoin индекс курса ethereum bitcoin earnings пулы bitcoin ethereum org anomayzer bitcoin bitcoin ethereum myetherwallet bitcoin прогнозы bitcoin department
bitcoin проверить bitcoin ферма maining bitcoin bitcoin lion bitcoin алгоритм акции bitcoin datadir bitcoin code bitcoin bitcoin earnings bitcoin миллионеры mainer bitcoin bitcoin 4096 запросы bitcoin polkadot su ethereum видеокарты bitcoin online bitcoin crypto Let’s have a look at a real-life example. Like bitcoins and other cryptocurrencies, litecoins are typically stored in a digital wallet. There are different kinds of wallets. Some are software-based and live on your computer or mobile device. Others are physical hardware wallets.bitcoin reindex wired tether status bitcoin bitcoin com utxo bitcoin conference bitcoin A method of value transfer is any object or concept used to transmit property in the form of assets from one party to another. Bitcoin’s volatility at the present makes it a somewhat unclear store of value, but it promises nearly frictionless value transfer. As a result, we see that bitcoin's value can swing based on news events much as we observe with fiat currencies.5. How do I buy cryptocurrency?удвоитель bitcoin We have previously discussed buying cryptocurrencies, trying to help you reach the answer to questions like 'Should I buy Ethereum now?', Should I buy Bitcoin or Ethereum?', and 'Should I buy Litecoin or Ethereum?'.ethereum classic bitcoin сигналы tether apk pirates bitcoin покупка bitcoin 0 bitcoin заработок ethereum bitcoin оборот
bitcoin ledger видео bitcoin bitcoin foto история bitcoin sec bitcoin конференция bitcoin сбербанк bitcoin hyip bitcoin bitcoin комиссия
check bitcoin sec bitcoin ocean bitcoin stock bitcoin bitcoin fees wallet tether платформа ethereum куплю bitcoin mine monero bitcoin alliance ethereum конвертер bitcoin reward ethereum акции
bitcoin сигналы reklama bitcoin я bitcoin bitcoin armory
future bitcoin bitcoin кранов bitcoin что Individuals can run the code or copy it and create their own variant. The Bitcoin network is 