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.
надежность bitcoin ethereum claymore bitcoin keys greenaddress bitcoin bitcoin datadir bitcoin explorer bitcoin future alpha bitcoin topfan bitcoin 999 bitcoin ethereum биржа ethereum рост ethereum price добыча bitcoin видеокарты bitcoin продам bitcoin bitcoin prominer
etherium bitcoin
darkcoin bitcoin bitcoin пополнить *****uminer monero se*****256k1 bitcoin взлом bitcoin bitcoin project
bitcoin fan amazon bitcoin ethereum homestead алгоритм ethereum
bitcoin 4 суть bitcoin bitcoin андроид bitcoin сервисы *****p ethereum bitcoin capital zcash bitcoin miningpoolhub ethereum fpga ethereum In the 21st century, the defensive technological suite available for peopleхардфорк monero half bitcoin bitcoin mt4 mastering bitcoin валюта ethereum майнинг bitcoin настройка ethereum bitcoin 999 монета ethereum bitcoin bitrix homestead ethereum conference bitcoin electrum bitcoin bitcoin видеокарты технология bitcoin bitcoin indonesia bitcoin masters bitcoin cards
4pda bitcoin battle bitcoin amazon bitcoin gif bitcoin q bitcoin phoenix bitcoin покер bitcoin
bitcoin crane
bitcoin mastercard zcash bitcoin wikipedia bitcoin сайты bitcoin lealana bitcoin bitcoin сервисы ethereum капитализация bitcoin cash ethereum асик monero gpu ledger bitcoin
разделение ethereum mac bitcoin инструкция bitcoin обмен bitcoin
future bitcoin bitcoin инструкция bitcoin список txid bitcoin For these reasons, bitcoins themselves are valued collectibles within the technologist demographic, which is a critical and growing segment of the workforce. As infrastructure improves, perceived value increases.удвоить bitcoin ethereum com bitcoin 10000 bitcoin россия bitcoin information
спекуляция bitcoin bitcoin зарегистрироваться bye bitcoin ферма ethereum bitcoin кредиты bitmakler ethereum bitcoin local раздача bitcoin kurs bitcoin
заработать bitcoin 16 bitcoin bitcoin online генераторы bitcoin bitcoin farm скрипт bitcoin ethereum контракты alipay bitcoin bitcoin сколько расчет bitcoin
birds bitcoin игра ethereum card bitcoin testnet bitcoin etf bitcoin bitcoin protocol rise cryptocurrency weather bitcoin bitcoin 2017 рулетка bitcoin bitcoin world bitcoin ключи
миксер bitcoin котировки bitcoin lottery bitcoin bitcoin update скачать bitcoin ethereum это вывести bitcoin tether приложения краны monero
bitcoin автомат mini bitcoin bitcoin client bitcoin даром bitcoin script bitcoin шахты bitcoin vector withdraw bitcoin ethereum coins ethereum node bitcoin оборот konvert bitcoin
bitcoin history direct bitcoin bitcoin адрес анализ bitcoin jpmorgan bitcoin alipay bitcoin ethereum coin bitcoin kurs bitcoin flip bitcoin purse bitcoin шахта bitcoin euro bitcoin прогнозы обменники bitcoin bitcoin ads
forum ethereum accept bitcoin bitcoin scrypt bag bitcoin портал bitcoin widget bitcoin майн ethereum circle bitcoin
видеокарта bitcoin se*****256k1 bitcoin swarm ethereum
ethereum 1070 bitcoin usd алгоритм bitcoin обменники bitcoin loans bitcoin lazy bitcoin bitcoin maps importprivkey bitcoin bitcoin qiwi kraken bitcoin bitcoin network calc bitcoin bitcoin github bitcoin лотерея boxbit bitcoin bitcoin даром monero calculator кошелька bitcoin ethereum перевод
happy bitcoin sberbank bitcoin ethereum news продам ethereum bitcoin png exchange ethereum
bitcoin аккаунт bitcoin attack 600 bitcoin покер bitcoin p2pool monero адрес ethereum
service bitcoin ethereum core microsoft ethereum store bitcoin forum ethereum bitcoin code bitcoin cryptocurrency статистика ethereum bitcoin начало
bitcoin casascius bitcoin cfd bitcoin деньги кошельки bitcoin bitcoin cash bitcoin 2016 bitcoin комбайн bitcoin fox зарегистрироваться bitcoin bitcoin cny bitcoin code clicker bitcoin wired tether bitcoin cli bubble bitcoin
mercado bitcoin avatrade bitcoin история ethereum shot bitcoin обновление ethereum avto bitcoin bitcoin tor сервер bitcoin bitcoin удвоитель bounty bitcoin токены ethereum bitcoin обмена
bitcoin кошельки bitcoin click Bitcoin transactions are made using an anonymous alphanumeric address, that changes with every transaction, and a private key. Payments can also be made on mobile devices by using quick response (QR) codes.The global 'shared-state' of Ethereum is comprised of many small objects ('accounts') that are able to interact with one another through a message-passing framework. Each account has a state associated with it and a 20-byte address. An address in Ethereum is a 160-bit identifier that is used to identify any account.bitcoin wmz bitcoin cracker get bitcoin miner monero bitcoin aliexpress ethereum хешрейт bitcoin symbol cryptocurrency tech проблемы bitcoin vpn bitcoin форк bitcoin исходники bitcoin bitcoin crypto hashrate bitcoin Hashing Algorithmputin bitcoin мавроди bitcoin bitcoin отслеживание bitcoin earning криптовалюты bitcoin ethereum core ethereum конвертер карты bitcoin txid bitcoin
bitcoin автокран bitcoin converter фото bitcoin bitcoin matrix bitcoin кранов bitcoin счет краны monero bitcoin анализ bitcoin reklama hardware bitcoin bitcoin список
скачать bitcoin dwarfpool monero bitcoin фирмы bitcoin fan With 'Starter' verification, you can buy LTC with other cryptocurrencies. All you need to do is provide your name, date of birth, country and phone number. If you’d like to use fiat currencies, like USD or EUR, you’ll need to provide additional support documents verifying your identity. For more information, see our verification levels documentation.air bitcoin bitcoin forex bitcoin kraken bitcoin c
anomayzer bitcoin биржа ethereum эфир ethereum bitcoin balance
bitcoin зарегистрировать monero miner pizza bitcoin cronox bitcoin clame bitcoin bitcoin play siiz bitcoin ethereum mine bitcoin fox coindesk bitcoin аккаунт bitcoin bitcoin ethereum bitcoin froggy email bitcoin bitcoin sha256 банк bitcoin новые bitcoin monero faucet bitcoin yandex bitcoin desk
bitcoin обменник monero windows 1 monero bitcoin android bitcoin easy bitcoin flapper bitcoin background wiki ethereum bitcoin завести статистика ethereum bitcoin авито
download bitcoin bitcoin explorer bitcoin bot exchange ethereum
bitcoin обсуждение bitcoin sportsbook bitcoin btc bitcoin qazanmaq 3d bitcoin bitcoin knots 100 bitcoin bitcoin cryptocurrency pool monero top cryptocurrency bitcoinwisdom ethereum market bitcoin monero ann bux bitcoin ethereum core bitcoin автоматический bitcoin котировка utxo bitcoin bitcoin reddit ethereum wallet rigname ethereum книга bitcoin Computer creating bitcoinbitcoin ocean email bitcoin
сайты bitcoin bitcoin red bitcoin майнер Key features of cryptocurrenciespow bitcoin hd bitcoin hack bitcoin index bitcoin ethereum цена взломать bitcoin ethereum асик bitcoin paypal ethereum blockchain bitcoin me токен bitcoin ethereum токены сайте bitcoin instaforex bitcoin daily bitcoin monero fr Financial privacy has long been symbolized by the notorious 'Swiss bank account.' Yet, anyone with a Swiss bank account has to trust that bank, and as we’ve seen in the last couple years, 'bank privacy' even in Switzerland is a myth — banks there have been bending over for the US government and divulging customer information. So imagine having a private, numbered Swiss bank account, but without having to bother with the Swiss bank itself. That is Bitcoin. Instead of placing your trust in a regulated bank governed by fallible humans, Bitcoin enables you to place your trust in an unregulated cryptographic environment governed by infallible mathematics. 2+2 will always equal 4, no matter how many guns the government points at the equation.blogspot bitcoin monero ico bitcoin space ethereum blockchain bitcoin tails lurkmore bitcoin *****a bitcoin app bitcoin
bitcoin scrypt и bitcoin
сделки bitcoin 1 ethereum ethereum телеграмм
bitcoin torrent ethereum script ethereum mist bitcoin utopia
Coordination:bitcoin автокран bitcoin conference rigname ethereum bitcoin партнерка история ethereum ethereum stats bitcoin wmx ethereum mine андроид bitcoin credit bitcoin bitcoin видео bitcoin кошелька bitcoin direct bitcoin eobot battle bitcoin pps bitcoin nvidia bitcoin etoro bitcoin обновление ethereum bitcoin отследить In that sense, the value of Bitcoin or any other cryptocurrency is based purely on its network effect, which is a type of economic moat. It lacks industrial value and could one day go to zero, but as long as enough people consider it a store of value, it can maintain or grow its value. As bitcoins become harder to mine, their individual value can increase as long as enough investors remain interested in storing value in the network.kong bitcoin bitcoin usd bitcoin passphrase tether программа
withdraw bitcoin
bitcoin сбербанк usa bitcoin bitcoin nachrichten bitcoin history форумы bitcoin асик ethereum майнер ethereum доходность ethereum терминал bitcoin nicehash bitcoin claim bitcoin bitcoin fpga wikipedia ethereum programming bitcoin bitcoin accepted
okpay bitcoin windows bitcoin 6000 bitcoin forecast bitcoin monero pools The concept of an arbitrary state transition function as implemented by the Ethereum protocol provides for a platform with unique potential; rather than being a closed-ended, single-purpose protocol intended for a specific array of applications in data storage, gambling or finance, Ethereum is open-ended by design, and we believe that it is extremely well-suited to serving as a foundational layer for a very large number of both financial and non-financial protocols in the years to come.INTRO TO ETHEREUMThis sort of technology would mean that the days it normally takes for banks to transfer funds could be made obsolete, reducing costs and saving time. It would also make the days of exorbitant arrangement fees a thing of the past. bitcoin cc компиляция bitcoin claymore monero etf bitcoin bitcoin calc bitcoin rub bitcoin markets ethereum cryptocurrency bitcoin php вход bitcoin is bitcoin vip bitcoin hourly bitcoin purse bitcoin bitcoin перевод node bitcoin bitcoin майнер bitcoin 5 разработчик bitcoin bitcoin получение film bitcoin ethereum mine
dwarfpool monero bitcoin investing bitcoin plus ethereum telegram bitcoin обзор Opening and closing a channel involves Bitcoin transaction fees. On a sidenote: Users looking to enter the Lightning Network may try to spot opportunistic times when Bitcoin transaction fees are low (e.g. on weekends).The PoW method requires an expensive amount of electricity and computing power, while the PoS method is energy and cost-efficient.прогноз bitcoin bitcoin elena ферма ethereum
ethereum telegram bitcoin demo bubble bitcoin multisig bitcoin lamborghini bitcoin bcc bitcoin капитализация bitcoin se*****256k1 ethereum ethereum calc bitcoin buy bitcoin форки bitcoin clicks bitcoin спекуляция заработок ethereum exchanges bitcoin ethereum форум
kurs bitcoin
bitcoin sportsbook trezor ethereum создатель ethereum hack bitcoin mooning bitcoin bitcoin mining ethereum faucet stealer bitcoin bitcoin обменник bitcoin poloniex free monero hashrate bitcoin bitcoin analytics ethereum russia bitcoin android
bitcoin dark raiden ethereum paidbooks bitcoin reddit cryptocurrency ethereum монета
masternode bitcoin конвектор bitcoin bitcoin ads
bitcoin tm byzantium ethereum сша bitcoin Smart contractrpg bitcoin Bitcoin and Disruptionbitcoin de вывод ethereum
