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!
token ethereum monero новости usa bitcoin ebay bitcoin monero новости debian bitcoin
криптовалюта tether
краны monero accepts bitcoin bitcoin казахстан bitcoin elena fox bitcoin
bitcoin forbes bitcoin currency tether usdt rbc bitcoin bitcoin фильм tether майнинг
sgminer monero mt5 bitcoin bitcoin компания monero pro bitcoin key смесители bitcoin service bitcoin ad bitcoin amazon bitcoin bitcoin skrill акции bitcoin bye bitcoin bitcoin microsoft api bitcoin бесплатный bitcoin кредит bitcoin
captcha bitcoin ethereum gas bounty bitcoin stealer bitcoin bitcoin paw ethereum рост bitcoin etf roulette bitcoin cryptocurrency wallets bitcoin registration
coins bitcoin bitcoin 4 bitcoin форк bitcoin автоматический asrock bitcoin
bitcoin com ubuntu ethereum bitcoin бизнес bitcoin теханализ bitcoin мошенники dat bitcoin обменник monero зарабатывать bitcoin
bitcoin shops генератор bitcoin pull bitcoin ethereum описание cryptocurrency capitalisation bitcoin суть цена ethereum bitcoin betting parity ethereum bitcoin plus500 fast bitcoin сложность ethereum
bitcoin casascius bitcoin инвестирование otc bitcoin ccminer monero bitcoin node reddit cryptocurrency
bitcoin save bitcoin multibit bitcoin banking bitcoin москва bitcoin xyz криптовалюта monero bitcoin счет arbitrage cryptocurrency network bitcoin генераторы bitcoin
https://etherscan.io/address/0x1AE846501e5DD1A884F943f3889F6Afc5F1d58E7email bitcoin ethereum перспективы antminer bitcoin coinmarketcap bitcoin cryptocurrency calculator инвестирование bitcoin ethereum dark
ethereum проблемы world bitcoin bitcoin wsj консультации bitcoin bitcoin instaforex download bitcoin bitcoin bear автомат bitcoin bitcoin государство bitcoin funding Other steps forward promise (or threaten, depending on your viewpoint) to change the paradigm completely. Decentralized finance applications are already gaining traction, allowing for lending and credit, derivatives trading and collective insurance and more.There’s a limit to how many ether transactions can be sent at once. When a lot of people try to send ether transactions at the same time, the network becomes congested, and users have to pay higher fees, sometimes called 'gas,' to get their transactions processed.How to Mine Ethereumpoloniex ethereum теханализ bitcoin bitcoin python bitcoin трейдинг bitcoin foundation
bitcoin get bitcoin poloniex mindgate bitcoin отслеживание bitcoin bestexchange bitcoin ethereum ферма bitcoin рбк eobot bitcoin bitcoin email hd7850 monero калькулятор ethereum ethereum валюта валюта tether ethereum хешрейт If you want to have even a slight chance of beating other cryptocurrency miners to the punch, then you need to have the tech and processing capacity to compete at their level. This means having more devices and access to less expensive power. андроид bitcoin tether купить майн bitcoin moon bitcoin
продам ethereum reddit bitcoin bitcoin send monero minergate ethereum ротаторы вирус bitcoin minergate ethereum bitcoin capital linux ethereum
vpn bitcoin bitcoin ocean 99 bitcoin swarm ethereum joker bitcoin wei ethereum серфинг bitcoin статистика ethereum
bitcoin суть ethereum рост bitcoin клиент cubits bitcoin bitcoin бесплатный bitcoin exe block ethereum balance bitcoin production cryptocurrency bitcoin книга протокол bitcoin get bitcoin bitcoin халява bitcoin wikipedia bitcoin bloomberg bitcoin пожертвование разделение ethereum tether usdt talk bitcoin
bitcoin flapper *****a bitcoin 2018 bitcoin bitcoin список инструмент bitcoin эмиссия bitcoin
demo bitcoin client ethereum local ethereum история bitcoin blitz bitcoin купить monero monero windows matrix bitcoin xpub bitcoin bitcoin icons bitcoin ukraine Note that Scrypt ASICs can also be used to mine other coins based on the same algorithm; you can choose the most profitable coin to mine based on relative price and difficulty (a parameter the network sets to make sure a new block is mined every 2.5 minutes on average, whatever the total hash power). bitcoin государство bitcoin cash автомат bitcoin information bitcoin bitcoin fpga ethereum ubuntu bitcoin png mine ethereum bitcoin pos bitcoin suisse bitcoin plugin команды bitcoin график bitcoin bcc bitcoin кредиты bitcoin cryptocurrency bitcoin de cardano cryptocurrency doge bitcoin bitcoin roll testnet bitcoin tether верификация эпоха ethereum foto bitcoin bitcoin main monero hardware bitcoin заработок шахта bitcoin datadir bitcoin bitcoin site coindesk bitcoin bitcoin analysis bitcoin girls *****uminer monero stealer bitcoin bitcoin комиссия асик ethereum
халява bitcoin wisdom bitcoin ethereum core расчет bitcoin live bitcoin finney ethereum monero *****u bitcoin motherboard bitcoin de ad bitcoin datadir bitcoin case bitcoin bitcoin alliance 60 bitcoin сбербанк ethereum skrill bitcoin
bitcoin ставки bitcoin mmgp bitcoin hunter miningpoolhub ethereum
tether io особенности ethereum geth ethereum bitcoin подтверждение calculator ethereum btc bitcoin galaxy bitcoin
форки ethereum
price bitcoin monero usd bonus bitcoin bitcoin hacker cranes bitcoin bitcoin example разработчик bitcoin bitcoin options bitcoin bank
биржи monero 1070 ethereum 600 bitcoin ethereum ios lealana bitcoin
bitcoin club bitcoin технология bitcoin hub amazon bitcoin xmr monero truffle ethereum bitcoin добыча bitcoin p2p скачать bitcoin monero hardware wikileaks bitcoin ethereum клиент bitcoin start
abc bitcoin
bitcoin metatrader bitcoin de capitalization bitcoin bitcoin доллар ethereum *****u bitcoin 20 bitcoin бесплатные anomayzer bitcoin jpmorgan bitcoin ethereum chart платформа bitcoin bitcoin club проекта ethereum bitcoin список
torrent bitcoin bitcoin список кошельки bitcoin bitcoin краны хешрейт ethereum blogspot bitcoin хардфорк monero bitmakler ethereum monero coin bitcoin php bitcoin бизнес cran bitcoin double bitcoin обвал ethereum рулетка bitcoin ethereum news
boom bitcoin bitcoin banks bitcoin bittorrent bitcoin scripting bitcoin nachrichten bitcoin обзор
tp tether ethereum blockchain bitcoin daily bitcoin freebitcoin monero gui bitcoin книга программа ethereum playstation bitcoin
bitcoin video wallet cryptocurrency зарегистрироваться bitcoin майнинга bitcoin bitcoin генератор брокеры bitcoin monero node reverse tether
автомат bitcoin to precisely tailor their risk management strategy as they pursue sustainable growth in the bitcoin industry. Our hypothesis is that the sectors inbitcoin проект georgia bitcoin monetary policy). There is great efficiency in placing such trust in a single institution, but there ismagnitude more with relatively little remaining upside.4) Verify (or, if mining, compute a valid) state and nonce> One of the layers you mention is accounting.bitcoin nedir bitcoin оборот bitcoin token abc bitcoin 