BLOCK_CHAIN_CH_2 : HOW BLOCKCHAIN’S WORKS

-block-chain is the backbone technology of digital cryptocurrency bitcoin.

- we can store a bitcoin in digital wallet (or ewallet).
- a block-chain is a distributed database of records of all digital event.
HASHING :
- hashing is essential to block-chain in cryptocurrency.
- a hash is a athmatical function that converts an input of arbitrary length into an encrypted output.
- hashing in blockchain ensure that all blocks are well formed.
- the collision free, easy-to-generate, commitment function make blockchain data structure functilnality powerfull.
- a hash function is a function that takes one pice of information of any size and maps it to aother piece of data of
fixed size.
Hash function :
- a hash function takes any input like numbers, words, etc.. and through the use of an algorithm produces an
output of a specific length.
- a hash function maps the data of any arbitrary size to data of fixed size.
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**SHA 256 HASH algorithm :
- the secure hash function (SHA) is a family of cryptographic hash functions.
- cryptographic hash function SHA-256 takes input of any size and the output is always a fixed size 256 bits.
- the SHA-0 is the first version of SHA algorithm.
- SHA-256 hash function commonly used in blockchain technology.
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- SHA-256 is also colled a secure hash algorithm 256.
- SHA-256 is a hashing algorithm used to convert text of any length into a fixed size string of 256 bits or 32
bytes.
- the top three SHA-256 blockchain projects by market capitalization are bitcoin(BTC), Bitcoin cash (BCH),
Bitcoin Satoshi’s vision(BSV).
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*IMMUTABLE LEDGER :
- blockChain is a decentralized , distributed and immutable ledger technology that operates over a peer-to-
peer network.
- blockchain is a iutable ledger implemented in a distributed fasion without a central authority.
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- the imutability property of a blockchain means that the data which has been written once on the
blockchain connot be changed.
- immutable means cannot be changed and ledger is fancy term for record.
- imutable ledger resides in the concept of the hash.
*EXPLANE WORKING OF MINING :
- blockchain mining is a process to validate every step in the transactions while operating bitcoins.
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- the people involved here are known as blockchain miner.
- the main objective of mining is to ensure the perpetuity and security of the decentralized network.
- blockchain mining is used to secure and verify bitcoin transactions.
- the process of new coin generation is colled mining.
- miners recive two types of rewards for mining that is new coins and transaction fees.
- to earn this reward the iners compete to solve a difficult mathematical problem based on a cryptographic
hash algorithm.
- the mining process starts when miners are trying to validate new transactions.
- miners recive rewards when they solve the complex mathmaticle problem.
*NONCE :
- nonce stand for number used only once.
- nonce is a 32 bit random number which can be used one time.
- the “nonce” in a bitcoin block is a 32-bit field whose value is adjusted by miners.
**BYZANTINE FAULT TOLERANCE :
- FAULT TOLERANCE REFERS TO THE ABILITY OF A SYSTEM TO CONTINUE OPERATING WITHOUT
INTERRUPTION.
- Byzantine fault tolerance facilities the distributed coputer network to achieve a incorrect information.
- Byzantine Fault Tolerance (BFT) is the ability of a distributed computer network .
- BFT is one of the features of a distributed network.
Proof-Of-Work (PoW) :
- The PoW is a common algorithm used by the ost popular cryptocurrency networks like bitcoin and
litecoin.
- The Pow system blockchain validators take data from a block header as an input, and continuously run it
through a cryptographic hash function.
- Pow need high level of electricity .
- It requires a participant node to prove that the work done and submitted by them.
- Specialized computers called ASIC’s are require to compute complex mathmaticle problems needed for
thr Pow System.
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- The puzzle solver will create a hash value of the header, using the SHA 256 function.

Proof of Stake (PoS) :

- poS protocol is the machanisum for blockchain that work by selecting validators.
- PoS are Proof of Stake algorithm used by cryptocurrencies to validate blocks.
- the PoS is another common algorithm that envolved as a low-cost, low-energy consuming algorithm.
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- PoS and PoW has similar objectives, they have some fandamental difference and features.
- the PoS may execute the algorithm in different ways.
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