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Blockchain Operations Explained

The document discusses blockchain operations, specifically focusing on how transactions are processed and validated in Ethereum and Bitcoin networks. It explains the roles of miners, the concept of Merkle Trees, and the process of achieving consensus on transaction order. Additionally, it highlights the challenges of orphaned blocks when multiple miners solve blocks simultaneously.

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12 views12 pages

Blockchain Operations Explained

The document discusses blockchain operations, specifically focusing on how transactions are processed and validated in Ethereum and Bitcoin networks. It explains the roles of miners, the concept of Merkle Trees, and the process of achieving consensus on transaction order. Additionally, it highlights the challenges of orphaned blocks when multiple miners solve blocks simultaneously.

Uploaded by

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

BlockChain Operations

John RWilliams, MIT


Transforming the FinTech Revolution
Merkle Tree Locks Transactions and Hashes Chain Blocks

Hash(Prev_Hash + Tx_Root + Nonce)  000000bc9xxx

Merkle Tree
Locks
transactions

©MIT GeoSpatial Data Center, 2017, 2018


Can we build a system where we all agree on the exact same
transactions and their order?

©MIT GeoSpatial Data Center, 2017, 2018


Ethereum Nodes

©MIT GeoSpatial Data Center, 2017, 2018


Transaction sent to one Ethereum node. That node broadcasts it to others who broadcast to others …

Transaction re-broadcast to
Transactions broadcast other miners
Transaction
out to set of miners
sent to an
Ethereum node

©MIT GeoSpatial Data Center, 2017, 2018


Your transaction may or may not be combined into a block. Miners race to form a valid block by solving puzzle

Winning miner broadcasts block to set of other


miners who check solution and re-broadcast it

©MIT GeoSpatial Data Center, 2017, 2018


Mining a Block Workflow
Transactions combined into a
Alice wants to send Bitcoin block and puzzle solved by one Mined Block is broadcast to all
to Bob miner miners for validation
Transaction created
And Broadcast to Miners

Transaction Complete

If validated each
miner adds block
to its chain with id
number

©MIT GeoSpatial Data Center, 2017, 2018


Two mining pools produce different blocks at similar time
I’ve mined Block 81

?
I’ve mined Block 81
?

©MIT GeoSpatial Data Center, 2017, 2018


Two blocks mined at almost same time – actual Ethereum

“orphaned”
block

©MIT GeoSpatial Data Center, 2017, 2018


Blockchain Consensus in BitCoin
Transactions combined into a Mined Block is broadcast to all
Alice wants to send Bitcoin block and puzzle solved by one miners for validation
to Bob miner
Transaction created
And Broadcast to Miners

Transaction Complete
Miners validate
and add to their
blockchain

Miner adds
different block

©MIT GeoSpatial Data Center, 2017, 2018


Ethereum Wallet

Logs – changes are logged and events raised


©MIT GeoSpatial Data Center, 2017, 2018
Client’s apps can monitor events

Ethereum can raise events when log is written


©MIT GeoSpatial Data Center, 2017, 2018

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