Proof of Work (Pow): It is an economic measure to deter service abuses by requiring some work from the service requester, usually processing time by a computer. If you are requesting a service, you have to show the service provider that you have spent significant interest in the service you are requesting. The Proof of …
Bitcoin – General Proof of Work (PoW) Concept Read More »
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We had seen how we could establish a consensus mechanism in a closed environment. However, in an open environment like bitcoin where anyone can join the network anytime. The biggest challenge is how to ensure consensus in an open system. To understand the challenge, we will first understand why we need a consensus mechanism when …
Bitcoin – Consensus in an Open System Read More »
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Consensus is a procedure to reach a common agreement in a distributed or decentralized multi-agent platform. It provides reliability and fault tolerance in a distributed system and ensures the correct operations in the presence of faulty individuals. Why do we require consensus? In a conventional distributed system, multiple individual parties take their own decision and …
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Transaction Flooding After joining the network, the initial step is to get the most recent copy of the blockchain from the peer nodes. After receiving the updated blockchain, initiate the transaction. Let us say A -> B: BTC 10 and broadcast the transaction to the peer nodes. As a consequence, every node in the peer …
Bitcoin – Transactions Processing Read More »
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Bitcoin works on top of peer-to-peer network architecture in a completely decentralized manner. It is an Adhoc network with a certain kind of random topology, and on top of that, it runs the bitcoin protocol using the well-known TCP port 8333. All nodes, the bitcoin network users, are treated equally, and new nodes can join …
Bitcoin – P2P Network Read More »
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Bitcoin developer has selected Forth programming language to write code. The code consists of the sender’s public key, signature, operations. Every transaction has a minimum of two codes, the first code is called ScriptSig, and the second one is called ScriptPubKey. ScriptSig: It contains the public key and signature of the sender. ScriptPubKey: It contains …
Bitcoin – Script Processing Read More »
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Generation and Management of Bitcoins: Bitcoin generation with a controlled way – The basic of bitcoin is the creation of coins in a controlled way to restrict the currency’s value as if we put a lot of currency in the system. The value of the currency will be gradually reduced. It is a standard concept …
Bitcoin – Coin management Read More »
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What is Bitcoin Anonymity? How is it achieved? Bitcoin is a permissionless distributed system, where users do not need to set up an account or require any email address, user name, or password to log in to the bitcoin network. Instead, they will use the public key-based cryptosystem, generate public and private keys, and add …
Bitcoin – User Anonymity Read More »
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Bitcoin has a nice concept called Bitcoin script. Before understanding it, let us answer the following questions when Alice (A) wants to transfer some bitcoins to Bob (B). How will Bob claim that transaction? How will Bob know that transaction is intendant for him and no one else other than Alice actually has initiated that …
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The bitcoin network must ensure that any other person cannot spend bitcoin owned by one person. For example, Eve can not spend Alice’s bitcoin by creating transactions in her name. In the broader sense, the intruder in the network will not be able to create some false transaction. To ensure that bitcoin uses public-key cryptography …
Bitcoin – Send & Receive Payment Read More »
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