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!
кости bitcoin bitcoin магазин microsoft ethereum
перевести bitcoin
bitcoin qiwi bitcoin oil bitcoin air bitcoin виджет bitcoin ann monero новости bitcoin футболка tether clockworkmod algorithm ethereum coinmarketcap bitcoin planet bitcoin bot bitcoin bitcoin stock bitcoin оплатить asics bitcoin cryptocurrency magazine gps tether пул ethereum bitcoin trinity collector bitcoin wallets cryptocurrency
bitcoin 99 аналоги bitcoin vip bitcoin bitcoin forecast bitcoin icons bitcoin исходники доходность ethereum
bitcoin таблица сложность ethereum bitcoin dark land bitcoin bitcoin withdrawal ethereum видеокарты bitcoin s bitcoin mt4 bitcoin основы cryptocurrency wikipedia 60 bitcoin wm bitcoin сбербанк bitcoin карты bitcoin avatrade bitcoin форк bitcoin cryptocurrency ethereum remix ethereum bitcoin block bitcoin xpub bitcoin информация film bitcoin
free bitcoin bitcoin работа
cryptocurrency это
So that’s it — that’s how you get Bitcoins. Just buy them, or sell stuff in exchange.принимаем bitcoin planet bitcoin The Nano X resembles a USB drive and connects to your device via USB or Bluetooth. This means that you can connect the wallet to your iOS or Android device and do not need a computer. It supports well over 1,500 cryptocurrencies. This list continues to grow each year as the Bitcoin community asks for support for their favorite cryptos.flappy bitcoin математика bitcoin The approach to supply that Bitcoin has adopted is different from most fiat currencies. The global fiat money supply is often thought of as broken into different buckets, M0, M1, M2, and M3.7 M0 refers to currency in circulation. M1 is M0 plus demand deposits like checking accounts. M2 is M1 plus savings accounts and small time deposits (known as certificates of deposit in the United States). M3 is M2 plus large time deposits and money market funds. Since M0 and M1 are readily accessible for use in commerce, we will consider these two buckets as medium of exchange, whereas M2 and M3 will be considered as money being used as a store of value. As part of their monetary policy, most governments maintain some flexible control over the supply of currency in circulation, making adjustments depending upon economic factors. This is not the case with Bitcoin. So far, the continued availability of more tokens to be generated has encouraged a robust mining community, though this is liable to change significantly as the limit of 21 million coins is approached. What exactly will happen at that time is difficult to say; an analogy would be to imagine the U.S. government suddenly ceased to produce any new bills. Fortunately, the last Bitcoin is not scheduled to be mined until around the year 2140.8 Generally, scarcity can drive value higher. This can be seen with precious metals like gold.обмен ethereum ninjatrader bitcoin cryptocurrency ico
bitcoin бумажник bitcoin world bitcoin ruble coin bitcoin bitcoin lurk
bitcoin blockstream кости bitcoin пулы bitcoin ethereum перспективы cpa bitcoin
sec bitcoin bitcoin casascius bitcoin хешрейт bitcoin расшифровка bitcoin прогноз bitcoin сделки nvidia monero bitcoin подтверждение
mikrotik bitcoin cubits bitcoin bitcoin ebay bitcoin это make bitcoin coin bitcoin cryptonight monero часы bitcoin p2pool ethereum bitcoin froggy обменник bitcoin
курсы bitcoin monero client ethereum сайт bitcoin mining bitcoin pizza bitcoin air bitcoin official monero калькулятор bitcoin machine bitcoin bloomberg euro bitcoin bitcoin heist
bitcoin mail кости bitcoin bitcoin buying daemon bitcoin bitcoin book game bitcoin click bitcoin difficulty monero polkadot decred cryptocurrency monero proxy bitcoin payment bitcoin покер bitcoin agario byzantium ethereum bitcoin blog icons bitcoin bitcoin etf ethereum investing bitcoin автомат bitcoin dollar raiden ethereum стратегия bitcoin lite bitcoin coinmarketcap bitcoin bitcoin минфин ethereum project bitcoin экспресс bitcoin vip nova bitcoin миллионер bitcoin forum cryptocurrency block bitcoin credit bitcoin habrahabr bitcoin monero proxy electrodynamic tether bitcoin development rinkeby ethereum monero btc secp256k1 ethereum ico monero bitcoin ферма приложения bitcoin
bitcoin daemon golden bitcoin monero сложность
cap bitcoin майн ethereum car bitcoin habrahabr bitcoin алгоритм monero bitcoin cgminer bitcoin anonymous rigname ethereum ethereum перспективы swarm ethereum bitcoin base ютуб bitcoin q bitcoin новости ethereum bitcoin data робот bitcoin testnet bitcoin bitcoin код mooning bitcoin bitcoin purse платформ ethereum bitcoin is chart bitcoin bitcoin xbt bitcoin курсы aml bitcoin протокол bitcoin bitcoin direct bitcoin cards hacker bitcoin bitcoin biz
monero краны
bitcoin puzzle collector bitcoin обновление ethereum
electrodynamic tether продам bitcoin bitcoin vps bitcoin rpg bitcoin electrum bitcoin хабрахабр cpuminer monero блоки bitcoin locate bitcoin china bitcoin monero краны monero pools bitcoin network значок bitcoin blue bitcoin Remember how I told you earlier that you need to use your computing power to mine, and that the more you use, the more Litecoin rewards you will get? Well, this requires LOTS of electricity!bitcoin easy 2016 bitcoin monero вывод
bitcoin сигналы обменник monero ethereum coin polkadot grayscale bitcoin msigna bitcoin bitcoin purchase зарегистрироваться bitcoin bitcoin автосерфинг
live bitcoin bitcoin ann cryptocurrency это hyip bitcoin buy tether компьютер bitcoin
bistler bitcoin
supernova ethereum bitcoin abc bitmakler ethereum bitcoin safe bitcoin brokers ethereum complexity bitcoin talk The governments of Syria, Yemen, and Libya have all failed to protect their people from violent civil wars.компиляция bitcoin cryptocurrency market bitcoin 4 bitcoin arbitrage
hit bitcoin сша bitcoin bitcoin программа bitcoin получить bitcoin biz bitcoin like A couple of alternative choices for professional miners who can’t locate enough DragonMint T1s for their operation.ethereum blockchain bitcoin payza bitcoin machines
torrent bitcoin mempool bitcoin ethereum цена usdt tether bitcoin sec bitcoin poker ava bitcoin ethereum shares clicks bitcoin x2 bitcoin генератор bitcoin tether перевод bitcoin price bitcoin ethereum
калькулятор ethereum express bitcoin приложение tether bitcoin matrix bitcoin сложность bitcoin сети prune bitcoin подтверждение bitcoin продажа bitcoin кости bitcoin bitcoin bubble
jaxx bitcoin bitcoin оборудование bitcoin лучшие bitcoin сатоши ethereum сайт bitcoin marketplace bitcoin novosti bitcoin frog kurs bitcoin кости bitcoin cryptocurrency price
bitcoin продам
куплю ethereum
monero cpu bitcoin pdf bitcoin sha256 bitcoin loan net bitcoin bitcoin 4000 bitcoin оплатить бот bitcoin bitcoin dance bitcoin config bitcoin 10000 ethereum miners accelerator bitcoin etoro bitcoin bitcoin cny bitcoin бонусы
вклады bitcoin bitcoin trade bitcoin ключи капитализация bitcoin mmm bitcoin
coinwarz bitcoin bitcoin cz bitcoin count bitcoin государство bitcoin смесители 4000 bitcoin
bitcoin links курса ethereum сети bitcoin strategy bitcoin x bitcoin
monero simplewallet ethereum android
вывод ethereum работа bitcoin abc bitcoin bitcoin рбк ethereum windows bitcoin tor bitcoin neteller bitcoin blog
трейдинг bitcoin usdt tether ethereum телеграмм bitcoin tm перевод bitcoin solidity ethereum bitcoin халява stealer bitcoin bitcoin puzzle bitcoin double шахта bitcoin yandex bitcoin bubble bitcoin bitcoin bit
cryptocurrency dash ethereum stats ethereum geth
платформе ethereum maps bitcoin alpari bitcoin bitcoin calc кошельки bitcoin порт bitcoin
txid ethereum magic bitcoin ssl bitcoin bye bitcoin запуск bitcoin
bitcoin компьютер ethereum биржа конец bitcoin bitcoin hyip bitcoin автоматически Often, the most striking and innovative solutions come from realizing that your concept of the problem was wrong.bitcoin ru инструкция bitcoin вебмани bitcoin алгоритм ethereum bitcoin орг bitcoin telegram monero nicehash bitcoin usd bitcoin landing bitcoin network amazon bitcoin solo bitcoin bitcoin plugin хардфорк ethereum bitcoin biz продам bitcoin bitcoin motherboard bitcoin com monero fee
розыгрыш bitcoin bitcoin минфин video bitcoin робот bitcoin bitcoin instagram вывод ethereum fire bitcoin python bitcoin
bitcoin tools bitcoin 4000 новости ethereum bitcoin ecdsa знак bitcoin testnet bitcoin bitcoin конец bitcoin magazin coin bitcoin ethereum serpent bitcoin приват24 платформу ethereum trading bitcoin
ethereum котировки
bitcoin минфин bitcoin land
ethereum обменять decred ethereum solo bitcoin bitcoin wmx phoenix bitcoin bitcoin income delphi bitcoin bitcoin rub bitcoin fire monero difficulty top tether addnode bitcoin
bitcoin количество