How Does the Blockchain Work?

Blockchain technology explained in simple words

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The Basics of Bitcoin

Images courtesy of author.
Fig. 1 - Bitcoin ledger digital file simplified
Fig. 2 - Transaction request message simplified
Fig. 3 - Digital Signature transaction encryption simplified

Tracking Your Wallet Balance

Fig. 4 - Blockchain Ledger
Fig. 5 - Blockchain transaction request structure

But Is It Really Safe? And Why Is It Called Blockchain?

The total number of possible bitcoin addresses is 2¹⁶⁰ or 1461501637330902918203684832716283019655932542976.

Fig. 6 — The block chain sequence structure simplified
Fig.7 - End of chain ambiguity logic

Transactions in the Bitcoin blockchain system are protected by a mathematical race: Any attacker is competing against the whole network.

Fig. 8 - Mary’s double-spending attack
Fig. 9 - Blockchain transactions security

Mining Bitcoin

Blockchain Benefits and Challenges

Useful Links

Building real-time finance at @Superfluid_HQ

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