Blockchain

A collection of 29 posts

Blockchain

Blockchain Byte - Week 29 Nakamoto Consensus

Table of Contents 1. Recap 2. Traditional Financial Transactions 3. Blockchain Transactions 4. Nakamoto Consensus 5. Challenges Recap During Week 28, we defined Blockchain protocols as a set of underlying rules that define the logic & functioning of a Blockchain. Protocols are rules 1. based on the code underlying the

Blockchain

Blockchain Byte - Week 28 Blockchain Protocols

Recap Last week we explained "The Byzantine General's Problem" which is used as an analogy to describe the challenge of establishing consensus in a decentralized network where some nodes can be dishonest or nodes are connected using an insecure network. We also discussed the below solutions

Blockchain

Blockchain Byte - Week 27 Byzantine General's Problem

Recap During Week 26, we discussed how decentralized ledgers are synchronized across nodes forming part of the blockchain network. We used the current world example of servers - production & backup servers which need to be in sync at all times to ensure seamless processing of customer requests to the

Blockchain

Blockchain Byte - Week 26 Node Synchronization

Photo by Shubham Dhage on Unsplash Recap During Week 25, we explained how: a. Blocks are validated & b. Blocks are added to the decentralized ledger We also mentioned that Blockchain is a FOUNDATIONAL TECHNOLOGY which has the potential to create new ways of processing transactions & storing data. The

Blockchain

Blockchain Byte - Week 25 Verification & Addition of Blocks

Recap During Week 24, we explained Merkle Tree along with Merkle Root and their application in a Blockchain. To summarize : 1. Merkle Root is created by hashing each pair of nodes which form part of a Merkle Tree till it reaches the root. 2. Merkle Root is thus representative of

Blockchain

Blockchain Byte - Week 24 Trees & Roots

Table of Contents 1. Recap 2. Merkle Tree / Merkle Root 3. Application in Blockchains 4. Data Immutability 5. Transaction Query 6. Optimal Space Usage & Transaction Verification Recap Last week we explored how blocks are mined in a blockchain - meaning how new transactions are authorized and added to the

Blockchain

Blockchain Byte - Week 23 : Block Mining

Table of Contents 1. Recap 2. Mining 3. Validation Controls 4. Nonce 5. Target 6. Game of Dice 7. Summary Recap During week 22, we explained how blocks are "chained" to each other thus earning the name Blockchain. We deep dived into block headers which contain the following

Blockchain

Blockchain Byte - Week 22 : Chaining the Block

Table of Contents 1. Recap 2. What is a Block? 3. Block Identification 4. Block Hash 5. Block Header 6. Reference to Previous Block Hash Recap Last week we explained how nodes validate & verify transactions in a Blockchain. In a Blockchain, transactions are added to the public ledger by

Blockchain

Blockchain Byte - Week 21 : Transaction Authorization

Table of Contents 1. Recap 2. Nodes Revisited 3. Transaction Verification 4. Transaction Aggregation - Blocks Recap In Week 20, we explained how transactions are initiated in a blockchain through a wallet. We ended with the below sequence of events : 1. Sender wants to send 10 BTC to Beneficiary 2.

Blockchain

Blockchain Byte - Week 20 : Transaction Validation

Table of Contents 1. Recap 2. Transaction Validation 3. Nodes 4. Mempool 5. Public Key Verification Recap To recap, last week we introduced at a high level how crypto payments or funds transfer is initiated and how "value" moves across transactions in a blockchain. We explained 1. Transaction

Blockchain

Blockchain Byte - Week 19 : Crypto Payments

Table of Contents 1. Recap 2. Wallet 3. Transaction Type - Input / Output 4. UTXO - Unspent Transaction Output 5. Digital Signature 6. Scripts - Lock / Unlock Recap To recap, last week we explained payments in fiat currency through banks & Financial Institutions. We are aware of payment rails in

Blockchain

Blockchain Byte - Week 18 : Transaction Initiation

Recap Over the past 17 weeks, we explored different aspects of blockchain by starting with money - it's history, use & source of economic value. We then moved to a new paradigm called crypto currency with different concepts like decentralization, consensus, open source, nodes, distributed ledger, cryptography etc.

Blockchain

Blockchain Byte - Week 17 : Open Source (Contd)...

Table of Contents 1. Recap 2. Open Source Business Models 3. Forking 4. Moving On Recap To recap, last week we introduced open source software which is defined as below: Open source software is source code that anyone can inspect, modify & enhance We also defined "source code"

Blockchain

Blockchain Byte - Week 16 : Open Source Software

Table of Contents 1. Recap 2. Open Source 3. Computer Software 4. Source Code Recap In Week 15, we delved into incentives in terms of how a system or code can incentivize actors in an ecosystem based on certain parameters or conditions being satisfied. Incentives in a Blockchain can be

Blockchain

Blockchain Byte - Week 15 : Incentive Types

Table of Contents 1. Recap 2. Satoshi's Whitepaper 3. Incentive through Mining 4. Incentive through Transaction Fees Recap Last week we introduced the topic of incentives in a blockchain & asked the below question Why should nodes put in any effort to maintain and carry on a blockchain?

Blockchain

Blockchain Byte - Week 14 : Incentive mechanism in Blockchains

Table of Contents 1. Recap 2. Driving Behavior 3. Incentive 4. Decentralized Incentives Recap Last week, we explained hashing and public key cryptography in digital signatures. We will discuss its application in Blockchain at a later stage. The below visual summarizes our discussion last week: Driving Behavior Today we will

Blockchain

Blockchain Byte - Week 13 : Hashing & Public Key Cryptography

Table of Contents 1. Recap 2. Digital Signature 3. Encryption & Decryption 4. Checksum 5. Passwords Recap Last week, we introduced Hashing. To recap, hashing is the process of having an input of any length -> running it through a hashing algorithm -> getting an output of fixed

Blockchain

Blockchain Byte - Week 12 : Hashing

Table of Contents 1. Recap 2. Cryptography 3. Function 4. Hash Function 5. Hash Table Recap Last time we introduced nodes and their core functions in a blockchain. Some of their core functions are : 1. Take transactions pending for processing 2. Check their integrity & 3. Record them on the

Blockchain

Blockchain Byte - Week 11: Nodes

Table of Contents 1. Recap 2. Node Functions 3. Node Types Recap To recap, last week we explored consensus and spoke a bit about nodes in a Blockchain network. Nodes perform various functions in a Blockchain. The main goal of a node is to provide reliable data storage in the

Blockchain

Blockchain Byte - Week 10 Consensus.. Analogy

Table of Contents 1. Recap 2. Consensus - Analogy 3. Consensus - Characteristics 4. Nodes & Incentives 5. 51% Attack Recap To recap, last week we defined consensus as a process of agreement between nodes who do not trust each other on a final state of data Despite lack of

Blockchain

Blockchain Byte - Week 9 : Consensus

Table of Contents 1. Recap 2. Consensus 3. Node 4. Types of Consensus Mechanisms 5. Parting Questions Recap To recap, last week we explained decentralization. When we say Blockchain is decentralized, it means that a Blockchain has : 1. Decentralized storage 2. Decentralized computation 3. Decentralized Communication Some questions to consider

Blockchain

Blockchain Byte - Week 8 : Web 3.0

Table of Contents 1. Recap 2. Web 3.0 3. What is Decentralized? 4. Why Decentralize? Recap To recap, last week we defined decentralization where Decentralization means there is no central point of control. Instead, decisions are made over a distributed network of computers (via consensus). Decentralization removes responsibility and

Blockchain

Blockchain Byte - Week 7 : Decentralization & Web 3.0

Table of Contents 1. Recap 2. Decentralization 3. Web 2.0 4. Web 3.0 5. Parting Questions Recap To recap, last week we described in simple terms the working of blockchain using the analogy of shared ledger accessible by all parties and all transactions visible to everyone. This is

Blockchain

Blockchain Byte - Week 6 : Distributed Ledger Technology

Table of Contents 1. Recap 2. Distributed Ledger Technology (DLT) 3. Network Effects 4. Consensus 5. Controls & Immutability 6. Incentives Recap To recap, last week 1. We defined blockchain as a system that allows a network of connected computers to maintain a single, updated and secured ledger 2. We

Blockchain

Blockchain Byte - Week 5 : What is Blockchain?

Table of Contents Recap What is a Blockchain? Ledger Comparison with existing infrastructure " I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party." - Satoshi Nakamoto Recap To recap, last week we touched upon: 1. Transfer of