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Lec 5 - BCT

slides for lecture of blockchain

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22 views29 pages

Lec 5 - BCT

slides for lecture of blockchain

Uploaded by

hassaanawan777
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Blockchain Technology

Scripts
Mechanics of Blockchain:
Scripts
● A script is a program or sequence of
instructions that is interpreted or carried
out by another program rather than by
the computer processor
● Bitcoin script is based on stack-based
programming. The stack-based scripting
language embedded in Bitcoin
transactions.
● Bitcoin scripts are compact, simple,
Scripts
● When bitcoins are sent to a recipient, Script commands
in an unlocking script (scriptSig) validate the available
bitcoins (UTXOs), while Script commands in a locking
script (scriptPubKey) set the conditions for spending
them.
Input Script
Output Script
Bitcoin Scripts
Bitcoin Scripts
● There are 2 components of Bitcoin Script
(separated by whitespace): Data & Instruction
● Data: Digital Signature, Public Key of sender,
Public key of receiver, etc. Data is always pushed
to stack!
● Operation: A keyword recognizable by Bitcoin
client software, has a prefix of “OP_”. Operation
always executes a specific function!

Sample Bitcoin Script:

99% of the Bitcoin transactions has this exact same


Bitcoin Script Features
There are total 256 opcodes

● Arithmetic Operations
● If/Then Conditions
● Logic/Data Handling
● Cryptographic Functions
○ Computation of Hashes
○ Signature Verification
○ Multi-signature Verification
Bitcoin Script opcodes
opcode Description
OP_CHECKSIG Takes public key and signature and validates the signature of the hash of
the transaction.

OP_DUP Duplicates the top item in the stack.

OP_EQUAL Returns 1 if inputs are exactly equal, returns 0 if otherwise.

OP_IF If top stack value is not False, the statements are executed. The top
stack value is removed.

OP_AND Boolean AND between each bit of the inputs

OP_SPLIT Split byte sequence x at position n

OP_DROP Removes the top stack item

OP_HASH160 The input is hashed twice: first with SHA-256 and then with RIPEMD-160.

OP_DIV Input a is divided by input b

OP_MOD Return the remainder after input a is divided by input b

OP_SWAP The top two items on the stack are swapped.


Advanced Scripts
● Multi-signature
○ Escrow (Guarantor node)
○ Green Addresses (Guarantor bank)
● Micro-payments (Deliberate Double
Spending)
● Multiplayer Lotteries (Complex lottery
system)
● Hash pre-image challenge (Paid brute-
force job)
Bitcoin Script Execution
● Execution starts from left-to-right side of
the script
● First step is to push the digital signature
“<sig>” to the stack
Bitcoin Script Execution
● Public key of the sender “<pubKey>” is
also pushed to stack
Bitcoin Script Execution
● “OP_DUP” operation pops an item from
stack, makes a duplicate of the item and
then pushes it back
Bitcoin Script Execution
● “OP_HASH160” takes the top value of
stack, computes its hash and pushes it
back to the stack
Bitcoin Script Execution
● Public key hash, provided by the Bitcoin
owner, is pushed to stack
Bitcoin Script Execution
● “OP_EQUALVERIFY” operation takes top
2 values from stack and compares them
● If both are equal then a execution moves
towards next instruction
● If both are not equal then an error
message is generated and the execution
is stopped
Bitcoin Script Execution
● “OP_CHECKSIG” verifies the digital signature of the
sender
● 2 required parameters to verify signature, i.e.
signature and public key, are popped from stack
and consumed for this operation
● Since signature is tied to the whole transaction, so
this operation verifies that the whole transaction is
valid or not
● If signature is verified then it means the
transaction is valid and script is finished executing
Blocks
Mechanics of Blockchain:
Blocks
● Blocks are files where data pertaining to
the Blockchain are permanently
recorded.
● Each time a block is ‘completed’, it gives
way to the next block in the blockchain.
● A block is thus a permanent store of
records which, once written, cannot be
altered or removed.
● A block is like a page of a ledger which
Why Bundle Transactions
Together?
● Single unit of work for miners
● Shorten the length of the chain
● Less time to verify the chain
● Less amount of metadata
A Typical Blockchain Data
Structure
Example Bitcoin Block
Example Bitcoin Block
Header
Example Special Coin-
Creation Transaction
Real-Time Bitcoin Block View
Thanks

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