How are transactions added to the book: Ethereum explanation
As a beginner in the world of cryptocurrencies, it can be overwhelming to capture the concepts of blockchain technology and how to perform transactions. In this article, we will break the process of adding transactions to the book on the Ethereum network.
Basics of blockchain
Before we delve into the specifics of the Ethereum transaction process, let’s quickly review what blockchain is. Blockchain is a decentralized digital book that records transactions in the computer network (nodes). This is basically a block of blocks, each of which contains a set of transactions.
ethereum and transactions
In the Ethereum network, transactions are registered in
blockchain called “Mainnet” or “Eth blockchain”. Each block contains a list of transactions that are verified by network nodes. After making a new transaction, it is added to the next available block in the chain.
transaction process
Here’s how one transaction will be added to the book of Ethereum:
- Creating transactions
: Alice sends 1 Bitcoin to Bob’s public address. This is done using a cryptocurrency payment processor such as Coinbase or Bitpay.
- This process is called “extraction”.
- Creating a block : The new block in blockchain ETH is created with a unique identifier (abbreviation) and contains a list of transactions.
- Blockchain update : updated blockchain is broadcast to all nodes on the web for verification.
miner verification
After adding a new block, it is verified by specialized nodes called Miners. Miners use powerful computers to solve complex mathematical problems that include finding a “shortcut” that corresponds to the previous block in the chain. This process is called
proof-of-work (POW).
To create an important transaction, Alice must:
- They have sufficient funds on her account.
- Be part of the group called “Committee” (more on this subject later).
- Fill out a specific task or puzzle related to the used cryptocurrency.
The role of committees and decentralized management
The Ethereum network has been designed from committees that are groups of nodes that cooperate to confirm the transaction and create new blocks. These committees have different levels of power, enabling decentralized management and security.
To sum up, the Ethereum transaction process includes:
- Creating transactions by Alice
- Verification by miners
- Blocking creation and add -on
- Blockchain update and verification
The use of prisoner requires that only correct transactions can be added to the book, while the decentralized nature of the network allows Peer-to-Peer transactions without intermediaries.
I hope that this explanation will help you understand how transactions are added to the book of Ethereum!