A block is a part of a chain that records all recent activities and becomes permanently connected to the blockchain database after completion. Every time a block is completed, a new block is produced. There are countless blocks in this chain that are in a proper linear, chronological order related to each other. Each block has a previous block hash. This chain has complete information about previous users as well as their balance from their origins to the very recent completed block. With this technology, all transactions can not be deleted. Such blocks are added via cryptography, ensuring they remain meddle-proof: the data can also be distributed, but cannot be copied.
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Blockchain is a distributed ledger that underlies cryptocurrencies like Bitcoin, providing a decentralized, transparent and auditable way to transfer data that is resistant to outages. Annoyed with videos of the garden variety 'how bitcoin/blockchain works,' I found following articles to be quite concise and refreshing.
- “How Bitcoin Works Under the Hood.” ImponderableThings (Scott Driscoll’s Blog), 14 July 2013
- I discovered this article via 'The Hitchhiker’s Guide to Smart Contracts in Ethereum'
- Here's a more up to date article referencing these articles: Thompson, Collin. “How Does the Blockchain Work? (Part 1).” The Blockchain Review by Intrepid, 3 Oct. 2016
The Block Chain: an Ordering of Transactions
The Block Chain is basically Transaction Ordering. The Bitcoin system places transactions in groups called blocks and links those blocks together with cryptographic hashes. The block chain is used to order transactions, while the transaction chain tracks how ownership changes. The end result is that the block chain stabilizes quickly, meaning everyone agrees about ordering blocks from the end of the chain.
Transactions protected by a mathematical race
For example, if your transaction is in one of the shorter branches, it will lose place within the blockchain. Blockchain transactions are protected by a mathematical race - one that pits an attacker against the entire network. Solving blocks is called mining, though its real purpose is to verify transactions and protect the block chain. Even with substantial computing power, the farther a transaction gets in the blockchain, the harder it would be for an attacker to change it, as they must outpace the rest of the network.
Double Spend Prevention
Any node can collect a set of unconfirmed transactions in a block and transmit it to the network as a suggestion for the next block in the chain. Therefore, a chain ending with some ambiguity has important implications for transaction security. Could somebody pre-compute a blockchain to spring on the network at the right time? Actually, the math puzzles in each block prevent this. By building blocks on top of each other makes chain transactions more secure. So, the system’s only vulnerability is a double spending attack near the end of the chain, which is why it is recommended to wait for several blocks before considering received money final.
Blockchain YouTube Favorites
How Does Blockchain Work
Love it! Knowledge, humor & DIY Python!! So, who's ready to launch an independent company run purely by AI (i.e. Decentralized Autonomous Organization)?!? 'How blockchain-review works'
How Blockchain is Already Taking Over (YouTube Competitors, Finance and More)
Why Blockchain Matters More Than You Think!
Blockchain and it's potential, simply explained.
Ever wonder how Bitcoin (and other cryptocurrencies) actually work?
Bitcoin explained from the viewpoint of inventing your own cryptocurrency
"Why Blockchain Matters More Than You Think!" Sources:
- The great chain of being sure about things. Bitcoin's technology allows people who don't know or trust each other to build a reliable ledger. This has implications far beyond the cryptocurrency
- Some footage retrieved from “The real value of bitcoin and cryptocurrency technology - The Blockchain explained”
- If implemented for settlements, Blockchain may save the Bank of England "tens of billions." They're committing to distributed ledger technology in order to improve settlement system speed and efficiency in the UK
- Six banking giants have just partnered to create a new cryptocurrency. The utility settlement coin is gaining momentum
- With Microsoft Embracing its New Ethereum-based Framework, Blockchain is becoming more scalable and accessible
Hacker Launches Public Mineable Blockchain "THOUGHT" For "AI Superhighway"
"I think bundling AI logic & data together with security & Blockchain sounds wonderful. We just have to ensure we know what that AI can ultimately do, because if something can learn & evolve, then we don’t necessarily know the limits of what we are securely receiving.”
"Thought’s blockchain-enabled Fabric fundamentally changes applications by embedding artificial intelligence into every bit of data making it agile, actionable and inherently secure. It might also just save humanity from Skynet!"
Embedding every piece of data with AI..
By embedding every piece of data with AI, otherwise “dumb data"--requiring applications to become useful--becomes valuable & “smart.” The “AI Thought” attaches to data allowing information to act on its own. So, understanding where it came from, where it is supposed to go & what it has to do or what function it has to perform.