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!
monero fr
alipay bitcoin
проекты bitcoin bitcoin update bitcoin inside bitcoin матрица компьютер bitcoin bitcoin блог
bitcoin minecraft bitcoin journal ethereum википедия bitcoin развод bitcoin рейтинг bitcoin фото bitcoin maps airbit bitcoin bitcoin stock торрент bitcoin bitcoin project майнинг bitcoin bitcoin сервисы bitcoin today bitcoin easy пополнить bitcoin takara bitcoin rbc bitcoin пицца bitcoin автомат bitcoin bitcoin bloomberg bitcoin tools ethereum криптовалюта ethereum fork
ethereum blockchain ethereum ico In the cryptocurrency space, smart contracts are digitally signed in the same way a cryptocurrency transaction is signed. The signing keys are held in a cryptocurrency wallet.bitcoin dice добыча ethereum FPGA Bitcoin Miningethereum pools usd bitcoin
cryptocurrency calendar bitcoin store лотереи bitcoin bitcoin биржи okpay bitcoin get bitcoin
инвестиции bitcoin мониторинг bitcoin
bitcoin падение ethereum addresses bitcoin donate epay bitcoin bitcoin check хешрейт ethereum bitcoin foto 'We have already greatly reduced the amount of work that the whole society must do for its actual productivity, but only a little of this has translated itself into leisure for workers because much nonproductive activity is required to accompany productive activity. The main causes of this are bureaucracy and isometric struggles against competition. The GNU Manifesto contends that free software has the potential to reduce these productivity drains in software production. It announces that movement towards free software is a technical imperative, ‘in order for technical gains in productivity to translate into less work for us.’'bitcoin get epay bitcoin bitcoin security coffee bitcoin bitcoin 100 обналичить bitcoin bitcoin мавроди ethereum проекты bitcoin ann приложение tether ethereum bitcoin monero сложность системе bitcoin ethereum russia bitcoin cz сайт ethereum отдам bitcoin bitcoin expanse bitcoin cgminer казахстан bitcoin cryptocurrency trade fast bitcoin alpha bitcoin bitcoin conference tether приложения ethereum markets bitcoin reindex monero logo Repeat.bitcoin значок bitcoin api flappy bitcoin xbt bitcoin bitcoin top bitcoin xt кредиты bitcoin tether provisioning bitcoin accelerator ethereum продать bitcoin wordpress е bitcoin bitcoin взлом bitcoin tube
ethereum habrahabr
продать monero исходники bitcoin claymore monero bitcoin golang bitcoin окупаемость майнинг bitcoin algorithm ethereum добыча ethereum tether io заработка bitcoin bitcoin удвоить логотип bitcoin
bitcoin service hub bitcoin ethereum miner сборщик bitcoin форк bitcoin fpga ethereum ethereum хешрейт bitcoin p2p ethereum картинки майн bitcoin bear bitcoin bitcoin reward bitcoin калькулятор установка bitcoin bitcoin комиссия bitcoin in
отзывы ethereum monero poloniex tinkoff bitcoin иконка bitcoin рейтинг bitcoin bitcoin эмиссия bitcoin торговля bitcoin стратегия ethereum github bitcoin завести bitcoin novosti знак bitcoin monero minergate bitcoin world bitcoin uk bitcoin bcc system bitcoin bitcoin государство сервер bitcoin calculator ethereum bitcoin golden отзыв bitcoin dog bitcoin icon bitcoin monero proxy mikrotik bitcoin
blockchain ethereum bitcoin приложения ethereum краны bitcoin торговать брокеры bitcoin сложность bitcoin использование bitcoin bitcoin forum iobit bitcoin заработать monero bitcoin attack bitcoin 2010 panda bitcoin bitcoin index bitcoin easy bitcoin cracker ethereum vk bitcoin сервер ethereum сайт polkadot cadaver таблица bitcoin fenix bitcoin
рейтинг bitcoin bitcoin trading
ethereum проект кошель bitcoin прогноз ethereum 16 bitcoin bitcoin 2000 bitcoin qt 1080 ethereum bitcoin knots bitcoin работать adc bitcoin A distributed ledger is a database that is shared among the users of the blockchain networkIn the matter of reforming things there is a paradox. There exists in such a case a certain institution or law; let us say, a fence or gate erected across a road. The more modern type of reformer goes gaily up to it and says, 'I don’t see the use of this; let us clear it away.' To which the more intelligent type of reformer will do well to answer: 'If you don’t see the use of it, I certainly won’t let you clear it away. Go away and think. Then, when you can come back and tell me that you do see the use of it, I may allow you to destroy it.'ethereum supernova bitcoin биржи arbitrage bitcoin 1070 ethereum vk bitcoin why cryptocurrency 60 bitcoin bitcoin софт ethereum org ethereum эфириум
carding bitcoin android tether
ethereum swarm bitcoin картинки bitcoin legal bitcoin work tether купить продать monero смесители bitcoin
хайпы bitcoin раздача bitcoin сбербанк bitcoin trade cryptocurrency tcc bitcoin
weather bitcoin usdt tether cryptocurrency bitcoin charts bitcoin flip bitcoin сервера bitcoin green
bitcoin index бесплатный bitcoin казино ethereum bitcoin nasdaq bittrex bitcoin apk tether bitcoin hyip
p2pool bitcoin Aside from the short-term Bitcoin payoff, being a coin miner can give you 'voting' power when changes are proposed in the Bitcoin network protocol. In other words, miners have a degree of influence on the decision-making process on such matters as forking.We are currently in a period of blockchain development where many such experiments are being run. The only conclusions drawn so far are that we are yet to fully understand the dexterity of blockchain protocols.payable ethereum bitcointalk ethereum программа ethereum green bitcoin bitcoin spend epay bitcoin заработать monero site bitcoin bitcoin ann bitcoin payza bitcoin exe bitcoin shops
асик ethereum bear bitcoin is bitcoin ethereum investing количество bitcoin supernova ethereum шрифт bitcoin tether обменник pro bitcoin bitcoin биржа bitcoin bank
bitcoin github курсы ethereum bitcoin eth bitcoin login cronox bitcoin bitcoin china ethereum farm заработка bitcoin bitcoin accepted bitcoin anonymous bitcoin сбербанк вывод monero теханализ bitcoin валюта tether майнинга bitcoin криптовалюта tether
mmgp bitcoin bitcoin card bitcoin сигналы cudaminer bitcoin mine ethereum tether usb bitcoin ocean bitcoin китай алгоритм monero цены bitcoin monero dwarfpool ethereum pools tokens ethereum 1 ethereum
2 bitcoin rigname ethereum
ethereum io ethereum видеокарты пулы monero reklama bitcoin bitcoin 0 bitcoin earnings wikileaks bitcoin
torrent bitcoin Banning bitcoin is a fool’s errand. Some will try; all will fail. And the very attempts to ban bitcoin will accelerate its adoption and proliferation. It will be the hundred mile-per-hour wind that fuels the wildfire. It will also make bitcoin stronger and more reliable, further immunizing it from attack and reinforcing its antifragile nature. And in any case, believing governments will ban bitcoin, if it becomes a credible threat to global reserve currencies, is an irrational reason to discount it as a savings technology. It both cedes that bitcoin is viable as money, while at the same time ignoring the principal reasons as to why: decentralization and censorship-resistance. Imagine understanding the greatest present secret in the world and not capitalizing on the asymmetry and utility that bitcoin provides in fear of government. More likely, either someone understands why bitcoin works and that it will not fail at the hands of a government, or a knowledge gap exists as to how bitcoin is able to function in the first place. Begin by understanding the fundamentals, and then apply that as a baseline to assess any potential risk posed by future government intervention or regulation. And never discount the value of asymmetry; the only winning move is to play.Unpacking Bitcoin’s Assurancesreddit cryptocurrency monero js bitcoin pools
фермы bitcoin ethereum хешрейт майнер bitcoin символ bitcoin
bitcoin poloniex forecast bitcoin lite bitcoin bitcoin start bitcoin алгоритмы bitcoin fpga cryptocurrency trading bitcoin wm bitcoin skrill alien bitcoin bitcoin обмен people bitcoin bitcoin xpub bitcoin greenaddress bitcoin курс casino bitcoin alien bitcoin валюта tether create bitcoin lurkmore bitcoin ethereum addresses аккаунт bitcoin розыгрыш bitcoin bitcoin nachrichten ethereum faucet tether wallet акции ethereum купить bitcoin bitcoin future antminer bitcoin jaxx bitcoin
bitcoin обзор приложение tether bitcoin daemon bitcoin take asics bitcoin сборщик bitcoin se*****256k1 ethereum ethereum dao
bitcoin миксеры why cryptocurrency токен bitcoin использование bitcoin bitcoin аналоги map bitcoin ethereum аналитика bitcoin шахты динамика ethereum bitcoin in
Miningtopfan bitcoin обмен tether ethereum exchange bitcoin курс пул bitcoin stealer bitcoin split bitcoin cryptocurrency logo bitcoin развитие ico ethereum
ethereum картинки wallet cryptocurrency куплю bitcoin bitcoin foundation bitcoin mmgp майнинга bitcoin
monero js token ethereum конференция bitcoin supernova ethereum
криптовалюта bitcoin bitcoin сервера
альпари bitcoin block ethereum bitcoin talk
bitcoin вывести capitalization cryptocurrency ethereum forks bitcoin комиссия daemon bitcoin 99 bitcoin bitcoin pdf bitcoin уязвимости ethereum api новые bitcoin сбербанк bitcoin bus bitcoin перевод ethereum ethereum добыча japan bitcoin casper ethereum bitcoin рухнул dat bitcoin asics bitcoin gek monero bitcoin москва bitcoin ecdsa перспектива bitcoin master bitcoin monero fee bitcoin tracker
reindex bitcoin ethereum заработок bitcoin cryptocurrency ethereum википедия poloniex ethereum difficulty bitcoin сложность bitcoin
china bitcoin tether верификация bitcoin adress 8 bitcoin matteo monero tether майнинг master bitcoin bitcoin all cryptocurrency calculator
coinmarketcap bitcoin
accepts bitcoin bitcoin бизнес bitcoin mmgp debian bitcoin chaindata ethereum описание bitcoin аналоги bitcoin To go in deeper with the Google spreadsheet analogy, I would like you to read this piece from a blockchain specialist.ethereum пул
bitcoin комиссия bitcoin bubble wei ethereum bitcoin playstation bitcoin carding bitcoin монет продать ethereum bitcoin habrahabr bitcoin reindex sberbank bitcoin armory bitcoin комиссия bitcoin bitcoin установка bitcoin config bitcoin аналоги decred ethereum bitcoin фирмы 100 bitcoin bonus bitcoin
bitcoin carding The block size limit, in concert with the proof-of-work difficulty adjustment settings of bitcoin's consensus protocol, constitutes a bottleneck in bitcoin's transaction processing capacity. This can result in increasing transaction fees and delayed processing of transactions that cannot be fit into a block. Various proposals have come forth on how to scale bitcoin, and a contentious debate has resulted. Business Insider in 2017 characterized this debate as an 'ideological battle over bitcoin's future.'bitcoin symbol sberbank bitcoin
Ethereum is a user-run system, relying on thousands of independent computers around the globe to monitor and verify transactions. This is achieved by each computer keeping a ledger, and relying only on it’s history to ensure that a transaction is legitimate, without relying on any central body.ethereum io byzantium ethereum bitcoin миксер bitcoin hacking ethereum com фермы bitcoin bitcoin project bitcoin x loan bitcoin часы bitcoin se*****256k1 bitcoin форекс bitcoin
wordpress bitcoin claymore monero truffle ethereum monero hardfork amazon bitcoin bitcoin code locate bitcoin bitcoin cap check bitcoin ethereum кошелька вебмани bitcoin bitcoin converter metatrader bitcoin bitcoin дешевеет
валюта monero nodes bitcoin genesis bitcoin bitcoin maining bitcoin pattern
bitcoin development ad bitcoin phoenix bitcoin alipay bitcoin bitcoin hyip ethereum stratum Quantum computers would break Bitcoin's securityethereum покупка bitcoin gambling bitcoin шрифт
Worse-is-better holds that, so long as the design of the initial program is a clear expression of a solution to a specific problem, then it will take less time and effort to implement a 'good' version initially, and adapt it to new situations, than it will to build a 'perfect' version straight away. Releasing software to users early and improving a program often is sometimes called 'iterative' development.Power consumption: you don't want to pay more in electricity than you earn in litecoins.bitcoin vip dash cryptocurrency проблемы bitcoin bitcoin protocol bitcoin balance ethereum android описание ethereum
bitcoin cache bitcoin пополнение iota cryptocurrency bitcoin banking programming bitcoin bitcoin bloomberg block ethereum eos cryptocurrency bitcoin cards bitcoin motherboard
That bitcoin is natively digital and powered by computers running software capable of being shut down lends to the default impression that bitcoin is inherently fragile. The mental image of a computer network being unplugged creates the false sense that one day and suddenly, somehow bitcoin as a system could cease to exist when the opposite is true for the very same reason. That bitcoin both exists everywhere and nowhere, that it is controlled by no one, that anyone is capable of running the open source software from anywhere, and that hundreds of thousands of people do, relied upon by tens of millions (and growing) is what gives bitcoin permanence. With no single point of failure, bitcoin is practically impossible to stop because it is impossible to control, and it is a dynamic system that only becomes more redundant and further decentralized in time and with increasing adoption. In short, bitcoin is more permanent than risky because it is an antifragile system. An idea popularized by Nassim Taleb, antifragility describes systems or phenomena that gain strength from disorder, which is bitcoin to its core. There is no silver-bullet that kills bitcoin; there is no competitor that can magically overtake it; there is no government that can shut it down. But it does not stop there; each attack vector and shock to the system actually causes bitcoin to become stronger.перспектива bitcoin Type of wallet: Hot walletbitcoin grant bitcoin играть agario bitcoin bitcoin fpga приложения bitcoin ethereum scan bitcoin spend rate bitcoin алгоритм ethereum loan bitcoin история ethereum 4pda bitcoin testnet bitcoin my ethereum asics bitcoin bitcoin сатоши bitcoin hd bitcoin андроид cryptocurrency analytics Privacyprimedice bitcoin bitcoin word You can also earn up to 5% APY when you stake Tezos on Coinbase. Learn more about Tezos staking rewards.This value is reflexive: people will believe in a store of value if they expect others to believe in itMining services (Cloud mining)hosting bitcoin форки bitcoin bitcoin rt bitcoin carding андроид bitcoin bitcoin dollar bitcoin войти monero fr
динамика ethereum bitcoin mine bitcoin презентация bitcoin миллионеры Not satisfied with payments, the Ethereum community is building a whole financial system that's peer-to-peer and accessible to everyone.The disadvantage of this higher volume of blocks is that the litecoin blockchain will be proportionately larger than bitcoin's, with more orphaned blocks.salt bitcoin ethereum курсы bitcoin проект galaxy bitcoin фьючерсы bitcoin dwarfpool monero bitcoin agario bitcoin 1070 alpari bitcoin polkadot ios bitcoin joker bitcoin
mastering bitcoin bitcoin акции bitcoin paw scrypt bitcoin ethereum майнить 6000 bitcoin future bitcoin logo ethereum bitcoin api erc20 ethereum cubits bitcoin bitcoin аккаунт bitcoin apple bitcoin loto
bitcoin talk bitcoin tor компьютер bitcoin block ethereum инвестиции bitcoin bitcoin png half bitcoin кошелек ethereum bitcoin аналитика collector bitcoin stats ethereum bitcoin pdf bitcoin wm bitcoin market daily bitcoin ethereum btc обмен ethereum bitcoin change token bitcoin collector bitcoin смесители bitcoin получить bitcoin bitcoin официальный bitcoin background bitcoin birds okpay bitcoin cfd bitcoin why cryptocurrency фермы bitcoin купить tether форумы bitcoin bitcoin girls 6000 bitcoin bitcoin london blocks bitcoin bitcoin перевод сложность ethereum bitcoin основы пожертвование bitcoin bitcoin store
вывод monero bitcoin spinner king bitcoin
(Source: Cryptocompare)bitcoin ios cryptocurrency calendar bitcoin investment monero blockchain ethereum network key bitcoin ethereum ферма ethereum chaindata coindesk bitcoin компьютер bitcoin 20 bitcoin network bitcoin bitcoin forex ethereum supernova скрипт bitcoin
ethereum контракт 1000 bitcoin теханализ bitcoin blacktrail bitcoin bitcoin datadir bitcoin халява trade cryptocurrency ethereum биржа bitcoin создатель продаю bitcoin bitcoin котировки
обмена bitcoin bitcoin metatrader bitcoin bank реклама bitcoin сбербанк bitcoin
ethereum investing monero rur bitcoin сервера bitcoin download moon bitcoin bitcoin png bitcoin валюты bitcoin обозреватель bitcoin china ethereum testnet контракты ethereum
capitalization cryptocurrency bitcoin stellar bitcoin 1000 bitcoin 999 difficulty bitcoin пирамида bitcoin forex bitcoin
bitcoin roulette ethereum обменять bitcoin москва bitcoin knots http bitcoin обменять monero bitcoin игры
addnode bitcoin bitcoin tor bitcoin trojan
bitcoin продам
world bitcoin
2x bitcoin bitcoin украина bitcoin capital Bitcoin accounted for just 0.4% of the world's money.bitcoin бумажник bitcoin hacker mainer bitcoin платформы ethereum bitcoin робот bitcoin cranes продать ethereum кошель bitcoin bitcoin free ethereum кошелька ethereum обменять rpg bitcoin bitcoin банкнота платформу ethereum bitcoin dogecoin bitcoin icons Remember that every node in the network holds a copy of the transaction and smart-contract history of the network. Every time a user performs some action, all of the nodes on the network need to come to agreement that this change took place.bitcoin покупка bitcoin knots ethereum coin collector bitcoin bitcoin org график bitcoin
отследить bitcoin bitcoin россия
играть bitcoin monero github стоимость monero xpub bitcoin
sell bitcoin 60 bitcoin monero logo bitcointalk bitcoin трейдинг bitcoin bitcoin transaction wild bitcoin hardware bitcoin ethereum проект ethereum investing bitcoin euro ethereum crane bitcoin wm ютуб bitcoin bitcoin carding 500000 bitcoin bitcoin s avto bitcoin магазин bitcoin
