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!
playstation bitcoin That’s it! Now, all you need to do is enter the Litecoin wallet address that you want your mined coins sent to!bitcoin hosting How to accept Bitcoinethereum биржа bitcoin бизнес bootstrappability of new nodes in a hostile environmentcardano cryptocurrency express bitcoin bitcoin nachrichten bitcoin оборот отзывы ethereum разработчик ethereum
япония bitcoin
bitcoin fpga store bitcoin bitcoin чат bitcoin flex electrum ethereum ethereum обозначение ethereum проблемы bitcoin протокол bitcoin metatrader ethereum создатель airbit bitcoin кран bitcoin сложность ethereum ethereum ubuntu bitcoin iso bitcoin pizza обзор bitcoin bitcoin investment tera bitcoin bitcoin биржи bitcoin wm adbc bitcoin bitcoin hype forecast bitcoin bitcoin скачать bitcoin бонус bitcoin go bitcoin команды
Blockchain-powered solutions can seamlessly aggregate all of this information, delivering significant value for industrial companies, and can also help unlock the full potential of other advanced technologies like augmented reality, IoT and 3D printing.Process:tether обзор reddit cryptocurrency trezor ethereum clame bitcoin bitcoin central bitcoin x2 faucet cryptocurrency pirates bitcoin
bitcoin mt5 bitcoin explorer bitcoin приложения ethereum php tether ico arbitrage cryptocurrency bitcoin xyz пул bitcoin
bitcoin cap bitcoin earn пополнить bitcoin microsoft bitcoin кости bitcoin
обмен monero
bitcoin форум money bitcoin bitcoin скачать bitcoin бот
btc ethereum bitcoin pizza bitcoin it bitcoin доходность bitcoin count bitcoin best bitcoin обозреватель
bitcoin fan tether android сеть bitcoin trade cryptocurrency bitcoin mail tether download
bitcoin доходность polkadot ico bitcoin etf cap bitcoin rigname ethereum amazon bitcoin
bitcoin проблемы accept bitcoin secp256k1 ethereum розыгрыш bitcoin bitcointalk ethereum bitcoin анимация Each halving cycle is less explosive than the previous one, as the size of the protocol grows in market capitalization and asset class maturity, but each cycle still goes up dramatically.bitcoin data
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 tether android ethereum настройка bitcoin fan minergate ethereum ethereum кошелька bitcoin вирус почему bitcoin miner bitcoin moneybox bitcoin bitcoin программа bitcoin лохотрон bitcoin хайпы bitcoin майнер bitcoin checker 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.bitcoin mempool daemon monero bitcoin видеокарты bitcoin bux bitcoin price pos bitcoin сети ethereum ethereum wallet bitcoin форки bonus bitcoin
bitcoin development mastering bitcoin bitcoin project пул bitcoin euro bitcoin bitcoin sportsbook обвал bitcoin bitcoin nachrichten bitcoin telegram invest bitcoin download bitcoin tether верификация скачать bitcoin платформа bitcoin bitcoin gambling bitcoin хешрейт cryptocurrency dash алгоритм bitcoin difficulty bitcoin bitcoin брокеры ethereum android bitcoin scanner satoshi bitcoin обмен tether bitcoin classic
бесплатно bitcoin генераторы bitcoin bitcointalk bitcoin bitcoin биткоин stats ethereum bitcoin в raiden ethereum технология bitcoin команды bitcoin лото bitcoin future bitcoin Genesis Mining Review: Genesis Mining is the largest Bitcoin and scrypt cloud mining provider. Genesis Mining offers three Bitcoin cloud mining plans that are reasonably priced. Zcash mining contracts are also available.skrill bitcoin статистика ethereum monero free bitcoin classic майнер bitcoin bitcoin 4 будущее ethereum bitcoin настройка frog bitcoin bitcoin co bitcoin bittorrent SegWit activation also boosted development work on other features such as MAST (which enables more complex bitcoin smart contracts), Schnorr signatures (which would enable another transaction capacity boost) and TumbleBit (an anonymous top-layer network).ethereum продать ropsten ethereum chain bitcoin bitcoin коллектор euro bitcoin ethereum mine bitcoin dogecoin bitcoin ruble tether coinmarketcap bitcoin robot mercado bitcoin fire bitcoin ethereum вики
bitcoin ecdsa bitcoin rpc bitcoin сервисы bitcoin добыть accepts bitcoin bitcoin journal зарабатывать ethereum bitcoin cracker bitcoin оборот group bitcoin bank bitcoin ethereum charts
bestexchange bitcoin
exchange ethereum bitcoin compare bag bitcoin терминалы bitcoin bitcoin plus ethereum продать bitcoin pizza bitcoin wmx block ethereum
bitcoin мерчант bitcoin qr ethereum web3 trinity bitcoin
ethereum alliance mikrotik bitcoin bitcoin instagram 50000 bitcoin monero биржа bitcoin это обзор bitcoin Litecoin is different in some ways from Bitcoin.удвоитель bitcoin
bitcoin testnet трейдинг bitcoin bitcoin scripting bitcoin пожертвование bitcoin ваучер ledger bitcoin metropolis ethereum bitcoin описание bye bitcoin hacking bitcoin buy tether
the ethereum продажа bitcoin cronox bitcoin bitcoin рейтинг cryptocurrency dash ann bitcoin ethereum eth sha256 bitcoin
bitcoin life ethereum habrahabr bitcoin приват24
capitalization cryptocurrency big bitcoin bitcoin converter qtminer ethereum bitcoin valet ethereum forks Ключевое слово платформу ethereum ethereum mine instaforex bitcoin ethereum кошелек ecdsa bitcoin bounty bitcoin ad bitcoin bitcoin mine bitcoin биржа Non-deterministic walletcryptocurrency converter bitcoin зарабатывать ethereum прибыльность bitcoin xl system bitcoin monero fork принимаем bitcoin bitcoin проверка loan bitcoin bitcoin goldman карты bitcoin bitcoin отследить bitcoin открыть
bitcoin исходники
uk bitcoin история ethereum short bitcoin bitcoin carding wallpaper bitcoin
кошелька bitcoin pow bitcoin эмиссия bitcoin обвал bitcoin bitcoin direct bitcoin network ethereum регистрация neo bitcoin кредит bitcoin monero fr адрес bitcoin casino bitcoin кошель bitcoin bitcoin agario unconfirmed bitcoin rx580 monero bitcoin word testnet bitcoin asics bitcoin лото bitcoin hit bitcoin bitcoin мошенничество проекта ethereum bitcoin конвертер сети ethereum эфир ethereum iphone tether de bitcoin bitcoin today bitcoin торги арестован bitcoin bitcoin ann monero address биржи ethereum the ethereum electrum bitcoin block bitcoin dwarfpool monero wikipedia ethereum bitcoin vip group bitcoin вклады bitcoin ethereum упал market bitcoin bitcoin word график ethereum habrahabr bitcoin bitcoin ebay bitcoin habrahabr token bitcoin bitcoin fund разделение ethereum ферма bitcoin bitcoin betting bitcoin игры валюта tether 4 bitcoin bitcoin завести bitcoin кошельки капитализация ethereum bitcoin waves добыча monero hack bitcoin bitcoin rotator ethereum доллар gek monero bitcoin system пример bitcoin bitcoin bitcointalk lamborghini bitcoin bitcoin pro bitcoin investment сколько bitcoin kran bitcoin bitcoin упал
проверка bitcoin bitcoin инвестирование bitcoin community bitcoin nvidia bitcoin обмена bitcoin timer лотерея bitcoin bitcoin p2p bitcoin fees erc20 ethereum bitcoin half bitcoin suisse bitcoin автоматически bitcoin биржи
ethereum клиент ethereum io system bitcoin
bitcoin деньги ethereum рубль r bitcoin autobot bitcoin konvertor bitcoin dogecoin bitcoin bitcoin шахта транзакция bitcoin icons bitcoin bitcoin protocol bitcoin кредит купить bitcoin bitcoin multiplier 999 bitcoin
bitcoin darkcoin
ethereum 4pda bitcoin ключи биржа ethereum bitcoin c bitcoin hashrate payable ethereum
биржа ethereum bitcoin pay all cryptocurrency bitcoin prosto abi ethereum bitcoin деньги bitcoin golden decred cryptocurrency daemon monero coins bitcoin bitcoin видеокарты bitcoin rotator bitcoin eobot gek monero cronox bitcoin bitcoin fasttech pay bitcoin bitcoin в конец bitcoin теханализ bitcoin monero пулы переводчик bitcoin
bitcoin protocol coinmarketcap bitcoin coinder bitcoin bitcoin safe bitcoin cryptocurrency polkadot ico make bitcoin bitcoin x2 bitcoin ira анонимность bitcoin yota tether japan bitcoin alpari bitcoin bitcoin настройка bitcoin 50 bitcoin скачать monero новости converter bitcoin bitcoin рублях bitcoin видеокарты ethereum rub 1024 bitcoin фермы bitcoin c bitcoin bitcoin io bitcoin go bitcoin ruble segwit2x bitcoin bitcoin кошельки майнинг ethereum bitcoin okpay bitcoin poker ccminer monero ico cryptocurrency gadget bitcoin сервисы bitcoin bitcoin co bitcoin cran bitcoin card bitcoin кошельки bitcoin today bitcoin valet bitcoin elena сборщик bitcoin zona bitcoin приват24 bitcoin bitcoin q фьючерсы bitcoin bitcoin casino bitcoin eobot обвал ethereum асик ethereum cryptocurrency mining bitcoin биржи bitcoin взлом bitcoin spinner 1 ethereum fasterclick bitcoin bitcoin gold bitcoin explorer bitcoin вложить bitcoin scrypt
bitcoin компьютер продать bitcoin lurkmore bitcoin
