It is really cool made and helpful
Topic: Trying to understand Blockchain Technology (Read 631 times)
Thank you gokayc
It is really cool made and helpful
It is really cool made and helpful
Hello,
I am new to crypto and trying to understand how it works.
I already read some explanations, but I am not quite sure if I understood it right.
1. PoW: Every transaction that is encrypted and send to the miners. The miners put all transaction in a block and check by comparing to the blockchain if the transaction is valide.
Every 10 min (for BTC) a block is made/mined (terms equal?) and added to the blockchain (something like a order book that contains all blocks full of transactions ever made).
So does it take at least 10 min till a transaction is confirmed? Do you need for the process of creating the block so much hashpower or for comparing?
2. How does PoS confirm transactions? Here you just need to stake/hold in a open wallet(terms equal?) coins to confirm a transaction.
But why is someone who stakes more coins is rewarded higher for confirming transactions?
I am new to crypto and trying to understand how it works.
I already read some explanations, but I am not quite sure if I understood it right.
1. PoW: Every transaction that is encrypted and send to the miners. The miners put all transaction in a block and check by comparing to the blockchain if the transaction is valide.
Every 10 min (for BTC) a block is made/mined (terms equal?) and added to the blockchain (something like a order book that contains all blocks full of transactions ever made).
So does it take at least 10 min till a transaction is confirmed? Do you need for the process of creating the block so much hashpower or for comparing?
2. How does PoS confirm transactions? Here you just need to stake/hold in a open wallet(terms equal?) coins to confirm a transaction.
But why is someone who stakes more coins is rewarded higher for confirming transactions?
Recently I've found this presentation about blockchain technology and It looks really interesting and useful. So you can check it out. I'm sure you gonna like it too.
http://www.goldmansachs.com/our-thinking/pages/blockchain/
Thank you for the accurate explanation.
I think I understood it right and just had problems with the meaning of the word valid and confirmed. (thought would be the same)
I think I understood it right and just had problems with the meaning of the word valid and confirmed. (thought would be the same)
So could it take less time, if I do a transaction just before a block is finished and my transaction is one of the last to take place in this block, right?
But if I am unlucky I make a transaction when the miner starts a new block so that have to wait till this block with my transaction is finished.
(In both scenarios I pay enough fee to be in the first block after transaction)
Yes.But if I am unlucky I make a transaction when the miner starts a new block so that have to wait till this block with my transaction is finished.
(In both scenarios I pay enough fee to be in the first block after transaction)
If there is no comparing, how do the miner validate the transaction? Why do they know that the transaction is legit?
All nodes (and miners are a subset of nodes) validate transactions according to the consensus rules. They check that the transactions that a transaction spends from exists in the blockchain. They also check that the transaction is allowed to spend the outputs that it is spending. Nodes will check that a transaction is not attempting to spend from a transaction which was already spent from before (i.e. a double spend). The blockchain has nothing to do with the validity or legitimacy of transactions (besides that all transactions in the blockchain must be valid). A transactions validity is determined by what outputs a transaction is spending from and whether it is allowed to spend those outputs.And if the blockchain is not for comparing or checking if the transactions are valid, for what is it then there?
The blockchain is for resolving double spends. When there are two or more transactions which spend from the same output, only one of them is allowed in the blockchain. The blockchain is for letting everyone on the network know which of those conflicting transactions is the "real" one. All of the conflicting transactions are valid transactions until one of them confirms.
Thank you achow101,
Not necessarily.
So could it take less time, if I do a transaction just before a block is finished and my transaction is one of the last to take place in this block, right?
But if I am unlucky I make a transaction when the miner starts a new block so that have to wait till this block with my transaction is finished.
(In both scenarios I pay enough fee to be in the first block after transaction)
If there is no comparing, how do the miner validate the transaction? Why do they know that the transaction is legit? And if the blockchain is not for comparing or checking if the transactions are valid, for what is it then there?
Quote
Quote
Every 10 min (for BTC) a block is made/mined (terms equal?) and added to the blockchain (something like a order book that contains all blocks full of transactions ever made).
So does it take at least 10 min till a transaction is confirmed?
So does it take at least 10 min till a transaction is confirmed?
Not necessarily.
So could it take less time, if I do a transaction just before a block is finished and my transaction is one of the last to take place in this block, right?
But if I am unlucky I make a transaction when the miner starts a new block so that have to wait till this block with my transaction is finished.
(In both scenarios I pay enough fee to be in the first block after transaction)
If there is no comparing, how do the miner validate the transaction? Why do they know that the transaction is legit? And if the blockchain is not for comparing or checking if the transactions are valid, for what is it then there?
1. PoW: Every transaction that is encrypted and send to the miners.
No. Nothing in the Bitcoin protocol is encrypted.The miners put all transaction in a block and check by comparing to the blockchain if the transaction is valide.
No, miners do not compare blocks to the blockchain. They build blocks which become part of the blockchain. However the block that they build must be valid blocks (by the consensus rules) and valid blocks must contain valid transactions. Every 10 min (for BTC) a block is made/mined (terms equal?) and added to the blockchain (something like a order book that contains all blocks full of transactions ever made).
So does it take at least 10 min till a transaction is confirmed?
Not necessarily.So does it take at least 10 min till a transaction is confirmed?
Do you need for the process of creating the block so much hashpower or for comparing?
There is no comparing. The hashpower is for creating a valid block. The hashpower is only for the Proof of Work, and the PoW must be valid for a block to be valid.2. How does PoS confirm transactions? Here you just need to stake/hold in a open wallet(terms equal?) coins to confirm a transaction.
But why is someone who stakes more coins is rewarded higher for confirming transactions?
Proof of stake works by deterministically choosing a person to create a block. The people who are staking must essentially lock up their coins in order to have a chance of being chosen to create the next block. With most PoS systems, the staker selection algorithm is weighted by the number of coins a staker has, so those that have more coins are more likely to be chosen to make the next block. But why is someone who stakes more coins is rewarded higher for confirming transactions?
Hello,
I am new to crypto and trying to understand how it works.
I already read some explanations, but I am not quite sure if I understood it right.
1. PoW: Every transaction that is encrypted and send to the miners. The miners put all transaction in a block and check by comparing to the blockchain if the transaction is valide.
Every 10 min (for BTC) a block is made/mined (terms equal?) and added to the blockchain (something like a order book that contains all blocks full of transactions ever made).
So does it take at least 10 min till a transaction is confirmed? Do you need for the process of creating the block so much hashpower or for comparing?
2. How does PoS confirm transactions? Here you just need to stake/hold in a open wallet(terms equal?) coins to confirm a transaction.
But why is someone who stakes more coins is rewarded higher for confirming transactions?
I am new to crypto and trying to understand how it works.
I already read some explanations, but I am not quite sure if I understood it right.
1. PoW: Every transaction that is encrypted and send to the miners. The miners put all transaction in a block and check by comparing to the blockchain if the transaction is valide.
Every 10 min (for BTC) a block is made/mined (terms equal?) and added to the blockchain (something like a order book that contains all blocks full of transactions ever made).
So does it take at least 10 min till a transaction is confirmed? Do you need for the process of creating the block so much hashpower or for comparing?
2. How does PoS confirm transactions? Here you just need to stake/hold in a open wallet(terms equal?) coins to confirm a transaction.
But why is someone who stakes more coins is rewarded higher for confirming transactions?
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