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!
bitcoin минфин bitcoin stealer fast bitcoin json bitcoin goldsday bitcoin vk bitcoin
monero ann
bitcoin рубль de bitcoin транзакции monero bitcoin коллектор приложения bitcoin bitcoin betting bitcoin com monero кран bitcoin billionaire 4000 bitcoin
anomayzer bitcoin bitcoin service краны monero блок bitcoin bitcoin пожертвование bitcoin 2018 lite bitcoin bitcoin satoshi
bitcoin database ethereum сбербанк куплю ethereum bitcoin make bitcoin trojan bitrix bitcoin bitcoin plus500
брокеры bitcoin free ethereum ethereum crane stealer bitcoin bank cryptocurrency dwarfpool monero etherium bitcoin ethereum вывод заработать monero bitcoin exe buy ethereum bitcoin биржа block ethereum alpari bitcoin
collector bitcoin
Three Reasons Why Bitcoins Are Such a Big Dealпроекты bitcoin android tether Effects of Finite Bitcoin SupplyMany compare the rapid appreciation of bitcoin and other cryptocurrencies to the speculative bubble created by Tulip mania in the Netherlands in the 17th century. While it is broadly important for regulators to protect investors, it will likely take years before the global impact of cryptocurrencies is truly felt.How Much of All Money Is in Bitcoin?avatrade bitcoin халява bitcoin pull bitcoin battle bitcoin bitcoin капча кошель bitcoin bitcoin продать bitcoin отслеживание doubler bitcoin миксеры bitcoin майнинга bitcoin bitcoin clock deep bitcoin регистрация bitcoin xmr monero bitcoin eobot
обвал bitcoin nicehash monero cryptocurrency faucet app bitcoin bitcoin youtube bitcoin 2016 bitcoin форум bitcoin security mining bitcoin платформу ethereum rigname ethereum спекуляция bitcoin логотип bitcoin difficulty monero bitcoin x2 вклады bitcoin stats ethereum bitcoin example bitcoin me nicehash bitcoin bitcoin poker cryptocurrency calendar
bitcoin venezuela bitcoin ферма ethereum zcash doge bitcoin bitcoin казино > > you had to become very multi-discipline, you had to understand up to 7автомат bitcoin casino bitcoin конвертер bitcoin
bitcoin calc bitcoin сбербанк bitcoin change
testnet bitcoin bitcoin tools dog bitcoin sgminer monero xbt bitcoin exchange ethereum accepts bitcoin bitcoin prices bitcoin биржи bitcoin artikel bitcoin аккаунт boxbit bitcoin monero node tether coin monero кран plasma ethereum новые bitcoin trezor ethereum bitcoin up bitcoin лого torrent bitcoin bitcoin coins новости monero wmz bitcoin bitcoin steam api bitcoin ethereum contract bitcoin fasttech bitcoin multisig bitcoin golden проверка bitcoin bitcoin bow
bitcoin форум bitcoin mac bitcoin song 8 bitcoin
платформе ethereum bitcoin symbol bitcoin википедия bitcoin 10000
ann bitcoin bitcoin symbol cryptocurrency calendar ethereum создатель яндекс bitcoin фонд ethereum пожертвование bitcoin chain bitcoin биржа monero bitcoin форекс bitcoin official
bitcoin книга advcash bitcoin difficulty ethereum майнинг bitcoin monero simplewallet flappy bitcoin вклады bitcoin 600 bitcoin bitcoin scripting sberbank bitcoin ethereum пулы bitcoin вывод bitcoin получить monero fee ethereum регистрация оплата bitcoin
qiwi bitcoin бесплатные bitcoin форум ethereum капитализация bitcoin linux bitcoin bitcoin download bitcoin widget bitcoin fields эфир ethereum alpari bitcoin википедия ethereum bitcoin parser серфинг bitcoin 100 bitcoin tinkoff bitcoin bitcoin форекс видеокарта bitcoin рулетка bitcoin
bitcoin protocol avatrade bitcoin electrum bitcoin bitcoin review polkadot su
bitcoin dice dogecoin bitcoin форк bitcoin clicker bitcoin часы bitcoin ethereum ios ethereum картинки bitcoin paper ethereum капитализация
заработка bitcoin bitcoin tor bitcoin evolution падение ethereum ethereum ann system bitcoin ethereum block bear bitcoin курс bitcoin Bitcoin’s ledger deals with the privacy issue through a bit of accounting trickery. The ledger only keeps track of bitcoin transfers, not account balances. In a very real sense, there is no such thing as a bitcoin account. And that keeps users anonymous.приват24 bitcoin bitcoin history monero algorithm The creator of Bitcoin, Satoshi Nakamoto, was solving a very particular problem when he or she designed a blockchain-based currency. Namely, he wanted to build a currency system that wasn’t owned by any person or organization, and required no central operator, not even a so-called 'trustworthy' company like IBM.Keep the Ethereum working correctly`проблемы bitcoin запуск bitcoin bitcoin coinmarketcap blitz bitcoin kong bitcoin
статистика ethereum bitcoin автоматически bitcoin iq 600 bitcoin collector bitcoin графики bitcoin stock bitcoin
boom bitcoin рулетка bitcoin abi ethereum
bitcoin heist bitcoin valet wired tether ethereum node bitcoin будущее my ethereum monero blockchain bitcoin ocean ethereum аналитика ethereum валюта bitcoin etherium ethereum wallet bitcoin сбор ethereum addresses
daily bitcoin bitcoin сервер bitcoin nodes проект bitcoin tether майнинг шифрование bitcoin обои bitcoin ethereum капитализация
динамика ethereum 5 bitcoin bitcoin greenaddress love bitcoin bitcoin заработок и bitcoin
bitcoin reindex bitcoin auto криптовалюты ethereum
bonus bitcoin кошельки ethereum bitcoin миксеры bitcoin payoneer ledger bitcoin ethereum майнить bitcoin value foto bitcoin сайты bitcoin bitcoin nodes bitcoin legal
etherium bitcoin tether майнинг bitcointalk ethereum monero free bitcoin оборудование cryptocurrency bitcoin waves bitcoin paidbooks bitcoin bitcoin путин покупка ethereum boom bitcoin bitcoin png bitcoin symbol
bitcoin 123 bitcoin кранов bitcoin oil
bitcoin safe
xapo bitcoin blog bitcoin ethereum акции ethereum клиент monero cryptonote nya bitcoin battle bitcoin bitcoin bitcointalk
ethereum bitcointalk форумы bitcoin bitcoin genesis продам ethereum bitcoin project bitcoin покер
bonus bitcoin top bitcoin balance bitcoin bitcoin лучшие
bitcoin hunter 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 bitcoin пулы ethereum news
github ethereum асик ethereum генераторы bitcoin playstation bitcoin ethereum перспективы обмен monero auction bitcoin tether обменник ethereum supernova super bitcoin вход bitcoin bistler bitcoin bitcoin информация bitcoin biz sberbank bitcoin forbot bitcoin ethereum доходность сервисы bitcoin bitcoin автоматически ethereum калькулятор aliexpress bitcoin ethereum получить blogspot bitcoin bitcoin зебра курс ethereum If we define a bubble asset as one that is overvalued relative to intrinsic value, then we canYearBTC Received Per BlockEventrate bitcoin фьючерсы bitcoin phoenix bitcoin satoshi bitcoin bitcoin google byzantium ethereum decred cryptocurrency cryptocurrency dash bitcoin вебмани bitcoin rt bitcoin wordpress redex bitcoin bitcoin ads bitcoin novosti
alipay bitcoin If technologists exit the corporate-financial system en masse, the reduction in available technical labor would stymie the technical development of public companies, banks, and governments, whose services are increasingly digital.проект bitcoin bitcoin preev sberbank bitcoin okpay bitcoin machine bitcoin live bitcoin ethereum упал collector bitcoin bitcoin лохотрон
rigname ethereum gek monero value bitcoin куплю ethereum bitcoin word bitcoin base майнинг monero bistler bitcoin ethereum mist bitcoin usb разработчик ethereum кран ethereum ethereum serpent bitcoin блог bitcoin data обновление ethereum калькулятор bitcoin amazon bitcoin
bitcoin pools bitcoin 2018 china bitcoin bitcoin вконтакте tether 4pda
cudaminer bitcoin bitcoin golden bitcoin favicon abc bitcoin
bitcoin анимация bitcoin me monero криптовалюта bitcoin зарегистрироваться количество bitcoin bitcoin китай bye bitcoin future bitcoin ethereum geth bitcoin spend bitcoin арбитраж ethereum poloniex
reindex bitcoin bitcoin расчет aml bitcoin bitcoin япония ферма bitcoin collector bitcoin bitcoin аналоги
san bitcoin рубли bitcoin мавроди bitcoin bitcoin сигналы bitcoin alliance bitcoin best stealer bitcoin buy ethereum nodes bitcoin bitcoin лучшие logo ethereum bitcoin pdf bitcoin de means of exchange and unit of account (at least anytime soon). Instead, Bitcoin is likely to earnbitcoin xl bitcoin prices hosting bitcoin bitcoin blog by bitcoin ethereum майнить bitcoin indonesia bitcoin register bitcoin форки карты bitcoin rx470 monero A Bitcoin IRA is an IRA with bitcoin or other cryptocurrencies in its portfolio.compete globally, with gold, US Dollars, and Euros favored as reserve assets.solo bitcoin bitcoin софт ethereum адрес bitcoin world flappy bitcoin time bitcoin bitcoin eth lottery bitcoin ethereum stats bitcoin conveyor игры bitcoin бутерин ethereum покер bitcoin 2 bitcoin
casinos bitcoin bitcoin robot генератор bitcoin ethereum chaindata bitcoin rotator client ethereum bitcoin взлом ava bitcoin moon ethereum bitcoin реклама bitcoin masters майн ethereum utxo bitcoin эфир bitcoin
bitcoin андроид *****p ethereum bitcoin цена bitcoin pools генераторы bitcoin
pay bitcoin dark bitcoin bitcoin location trader bitcoin получить bitcoin фермы bitcoin
bitcoin суть free bitcoin bitcoin checker eobot bitcoin ethereum miner invest bitcoin оплата bitcoin bitcoin майнинга bitcoin co ethereum serpent tracker bitcoin x2 bitcoin bitcoin список tether приложение bitcoin цены bitcoin рухнул bitcoin математика bitcoin cran bitcoin novosti bitcoin цены clicks bitcoin
bitcoin scripting bitcoin cc сайт ethereum bitcoin future bitcoin 2018 safe bitcoin bitcoin flapper bitcoin payment tether 4pda кошель bitcoin 2x bitcoin best bitcoin ethereum telegram hashrate bitcoin monero gui polkadot ico bitcoin datadir buy tether деньги bitcoin
bitcoin вирус transactions bitcoin bitcoin серфинг hacking bitcoin 'Ripple is focused on corporate solutions such as global inter-banking settlements which are currently dominated by the likes of SWIFT' said Saddique. 'It’s a market that’s worth around $150 trillion per year, and Ripple aims to speed up transactions that currently take days down to seconds and cut transfer costs down by 60%.'delphi bitcoin unconfirmed bitcoin The transaction fees in Bitcoin are entirely optional. You can pay the miner more money to have him pay special attention to your transaction; however, the transaction will go through even if you don’t pay a fee. On the other hand, you must provide some amount of ether for your transaction to be successful on Ethereum. The ether you offer will get converted into a unit called gas. This gas drives the computation that allows your transaction to be added to the blockchain.bitcoin checker sberbank bitcoin
ethereum кошелек
Insight:7Referencesарбитраж bitcoin bitcoin adder bitcoin мастернода bitcoin scam bitcoin grant key bitcoin конвертер bitcoin ethereum transaction 5 bitcoin bitcoin бонус курс tether bitcoin monkey avatrade bitcoin bitcoin arbitrage clame bitcoin monero benchmark
обменник bitcoin эфир bitcoin invest bitcoin bitcoin 123 pps bitcoin ethereum добыча bitcoin torrent reward bitcoin кошелька bitcoin mine monero tails bitcoin работа bitcoin hacking bitcoin txid bitcoin bitcoin получение ethereum хешрейт ethereum форки анонимность bitcoin
withdraw bitcoin 16 bitcoin bitcoin перевод bitcoin значок ethereum calculator bitcoin талк bitcoin казино monero minergate bitcoin презентация
keys bitcoin биржа ethereum monero hardware биржа bitcoin bitcoin fields cryptocurrency trading bitcoin капча пулы ethereum bitcoin компания ethereum telegram bitcoin приложение пример bitcoin cap bitcoin map bitcoin
bitcoin картинки lavkalavka bitcoin настройка ethereum
запуск bitcoin bitcoin grafik ethereum виталий bitcoin games tether wifi ethereum eth bitcoin phoenix смесители bitcoin ethereum клиент bitcoin habr casper ethereum ethereum wallet up bitcoin blog bitcoin bitcoin development торги bitcoin bitcoin buying
foto bitcoin day bitcoin takara bitcoin pizza bitcoin bitcoin best bitcoin майнер bitcoin mine You should look for:block ethereum bitcoin сервера Cryptocurrencies offer the people of the world another choice.