Hi all,
This is part 2 of my explanation of interacting with the basics of blockchain. You should check out my last post in order to understand this one. For part 1, see: https://steemit.com/bitcoin/@ddangerwu/learn-by-interacting-with-hash-blocks-and-blockchain-get-100sp-delegated-for-insightful-comments
Disclaimer: I did not make the website used in this explanation. It was made by Anders Brownworth and you should check him out at https://anders.com
So last time we ended with explaining what is Hash, Blocks, and Blockchain, now let's talk about how we can make it useful.
First we need to secure blockchain by giving the same copy to lots of people. This is what it means to have a "distributed" blockchain. Notice that everything in all three chains are exactly the same: data, nonce, and hash.
If one peer changes his chain, it will be very obvious to the entire network that his chain does not "follow the rule". But what happens if peer C changes his chain then mines it so that it follows the rule?
As you can see, now peer C's chain is once again following the rule but his hash is different. Block 2 hash of Peer A and B is 000012fa... while peer C's block 2 hash is 0000860d... So, this is how we have the conclusion that "blockchain is secure because if you change any middle block's data, you'd cause every subsequent block to be invalidated. This is how we can be sure everything is tamper-proof just by verifying the latest block." (see part 1 post for details)
Next, let's change the data to a ledger to create a token.
As you can see, creating a ledger on the blockchain is simply changing the data to a list of A transfer to B some X amount. What is important to note is that block size or number of transfers within each block does not have to be consistent. This explains why Lightning Network works in that blocks can be small and only refers to the full ledger elsewhere. see my video on Lightning for details: https://steemit.com/bitcoin/@ddangerwu/understanding-lightning-in-simple-terms-and-what-it-means-for-you-get-100sp-delegated-to-you
Lastly, a new address, maybe one created by an exchange, will give you an initial amount and your balance will be deducted from this initial balance. This is how the Bitcoin network validates your transactions. It actually will go back up each transaction to see where the money came from.
To understand how this works, we will talk about output vs inputs, private vs public keys, and the relationship between some more advanced topics. Stay tuned.
-Dan Wu
Now that you've watched the vid, what did you think? I want to do my part to fight spam and promote insightful comments/discussions. I read every comment and value your feedback. Write something and I will pick the most insightful comment to delegate 100 Steem Power to you for a week.
You may earn curation awards using my STEEM manually OR use a service like SmartSteem to vote automatically for you.
Here is last post's winner:
Blockchain is a distributed ledger system - but have you considered that your interpretation may need to include the mining concept.
I didn't know about more block chain before reading your post . I like your post and steemit is the best place to make rewards and it will become successfull man to me
great post :)
Blockchain is not bitcoin. Bitcoin is digital money, a virtual currency that was the first successful blockchain product. Blockchain is the technology that enables cryptocurrency like bitcoin. While they go hand-in-hand, there are other use cases for blockchain besides bitcoin. Blockchain can ensure that the terms of programmable autonomous contracts, known as smart contracts, are met. It can be used for online voting to address voter fraud. It can be used to secure identity and many other situations where transparency and security is lacking.
Exactly. This clarification is important.
thanks for your information...
great post.good work.
You got a 19.76% upvote from @postpromoter courtesy of @ddangerwu!
Want to promote your posts too? Check out the Steem Bot Tracker website for more info. If you would like to support the development of @postpromoter and the bot tracker please vote for @yabapmatt for witness!
Amigo buen post espero poder ganar algo en mi vida jajajajajajajaj no entendí muy bien pero esta bien
I'm still pretty new to the world of crytocurrency so thanks for helping out newbies like me, understanding blockchain makes my head spin haha even know I'm confused by it all I absolutely love steemit as I can learn sooooo much :D
What is the relationship between 'following the rule' as you have described in this post and making a fork or 'changing the rule'?
the rule in forks is about changing the protocol. see my vid on forks https://steemit.com/cryptocurrency/@ddangerwu/hard-vs-soft-forks-how-they-can-double-or-trouble-your-funds
the rule I'm talking about here is about finding the nonce. see my last post
Thank you for the clarification & the link to the fork video.
Great offer dude!
Choose me cos it's the easiest option!!!
Greetings @ddangerwu. the technical terms of the structuring of the chain of blocks are new to me and you have a simple way to explain it, it will be of great help to me when applying it in a programming language, so I will be reading your future articles.
As for the Lightning network protocol, in my opinion it is a plus that bitcoin needs to generate confidence to those who just know the currency, these transactions can facilitate mass consumption such as restaurants, shops, etc.
Thank You, I have recently been starting to look into learning more about the blockchain for I truly believe this will be a big part of the future regardless of the price of bitcoin.
Thanks a ton for your delegation!
Although my VP is very low at the moment and I'm on a recharging mode a.k.a. voting-fast this week but this delegation will certainly help me in whatever little votes I cast this week.
Your blog becomes more interesting with this offer. It's like learning and earning going hand in hand 😊. Thanks again for such generosity!
your welcome =D
This is amazing. I learned so much from the previous post, but for some reason I didn't make a comment at the time. This here is so brilliant. I knew a bit about blockchain before reading your posts: but not as deeply as I do now!
I definitely didn't know the lingo before like I do now. Plus I'd only heard vaguely about Lightning Network before, never knew what it meant until now. I used to think every data in a block must be of equal sizes.
Oh and I wonder is there other ways of hashing that doesn't involved finding zeros, or four zeros? Like is there other "work" that can be done in mining, that is not SHA 256?
Oh and finally, is the security of a blockchain proportional to its number of users? I mean is a blockhain with 20 servers less secure than one with 2 million? Thanks in advance for your answer. And thanks for the articles.
ya there are a myriad of different algorithms other than SHA256. and also yes, more servers/miners means harder to maliciously control the majority so more secure network
Thank you for this post. I read it through and also your previous one on the subjects of Hash, blocks and the blockchain and SHA 256 and although I am complete novice at tech, I understood it. Also I watched your video about the lightning network and I understand that as well, but this post and the lightning network video did leave me with a few questions I would like to present here:
My understanding is that for a block to be accepted, there needs to be a consensus rather than total agreement by the network. Is this accurate? If this is the case, is it possible for a group to place enough computers on the network where they can manipulate everything. I am not using this idea about Bitcoin but a lot of the smaller cryptos that seem to be manipulated have me wondering exactly how they are doing it.
You wrote about data (simple text) being in the blocks and also ledgers (numbers). How complicated can you get in terms of the type of data numbers and formulas can you put in there. I am just wondering because for example a network like Steemit. It appears to me like there must be very complicated data being put into a block (I refer to the videos, pictures and such). Is it actually going on to the Blockchain or just moving along side it and some other tagging data going in the block? Hopefully this question makes sense.
Regarding the lightning Network:
I understand that lightning network speeds up the Bitcoin Blockchain because it takes transactions and all of their details off the main blockchain and allows for that “business” to happen on these side chains. From what I understand, once the transactions are settled they then are placed on the Blockchain. My questions is: How come when those transactions are placed on the Bitcoin Blockchain they do not slow down the Blockchain at that point? Does all of the information go onto the main chain or only a summary of what occurred?
Is the information that is not on the Blockchain the same type of cryptographic information as that on the main Blockchain? If not, I have two questions. 2A. Is it as secure? And 2B. Is there a chance that the lightning network can at some point have the same speed challenges as the main Blockchain? Or is the continuous building of new lightning network nodes specifically done to prevent this from happening?
I really appreciate your work here teacher. I lam finally getting the basis for this technology. I am resteeming and suggesting to friends here they follow you and do like I have which is to go back and review your info. Thanks for your time and teaching.
Lightning:
If you were in the room with me I would kiss you (on the cheek and I have a girlfriend already, just saying). Thanks for the responses I get it. Boy do I get it. When is the next post/class please and direct me to other posts of yours you think I need to read. thanks again teacher.
Really great post :)
Understanding what is behind the blockchain is important for everyone today. It will be even more important in the future, when the blockchain technology will be used in everyday life by everyone in the World.
Congratulations @ddangerwu, this post is the sixth most rewarded post (based on pending payouts) in the last 12 hours written by a Superuser account holder (accounts that hold between 1 and 10 Mega Vests). The total number of posts by Superuser account holders during this period was 1685 and the total pending payments to posts in this category was $12396.94. To see the full list of highest paid posts across all accounts categories, click here.
If you do not wish to receive these messages in future, please reply stop to this comment.
@ddangerwu please read this article and make a video about siacoin:
https://steemit.com/siacoin/@sodainducedpain/odd-behavior-from-sia-community
I'm really glad to have stumbled upon your posts @ddangerwu. I don't have a tech background but am really interested in learning about the different applications of blockchains. Your explanation makes sense, but I still have a question that I wonder if someone is able to answer for me?
What are the practical implications of the 'rules' on the steem blockchain? I am thinking that the blockchains built for the purpose of being a currency are a little easier to understand. With steem being built as a social media platform I get a bit confused about where the interface ends and the blockchain begins.
For example: can a new developer create another platform on the steem blockchain which has groups and can create polls - or is that not within the 'rules' of the steem blockchain?
the data hashed in each block can be about anything.
Very nice @ddangerwu
Your knowledge about blockchain is very useful for new people in this technology!
Now I can understand the whole process of making a token and distributing it to the people, making blocks and having the wole network secured. But still there is a one doubt:
We all know that blockchain has plenty of reasons why we should adopt this technology. One of them is security and authorisation of the transactions which makes is safe, secured and authorised. In addition to that whole data inside blockchain can be kept there for ages.
So here is my question : If I would use the blockchain technology in my company for example in money transfers, then I will be the only one person who gave the public keys to other people, (and who created whole project) then how others can proof that I just changed some information inside a blockchain?