A Private key Generates a Public Key
What is Block chain?
- In order to properly understand block chain, there are some key core concepts students should be . These key concepts include security, trust less-ness, decentralization, distributed ledgers, group consensus and immutability. section, and throughout this study guide, these topics presented and analyzed. understand these key concepts and more, it’s important with .
Block chain is distributed public ledger of immutable transaction,it uses cryptography to secure transaction and block.
“The Block chain is an incorruptible digital ledger of economic transactions be programmed to record not just financial transactions but virtually everything .”
Impact of Block chain in industries
Problem with Traditional System
Need to trust
Components of Block chain
A peer-to-peer (P2P) network connecting participants and propagating transactions and blocks of verified transactions,based on “gossip” protocol.
Messages,in the transactions,representing state transactions.
A set of consensus rules,governing what constitutes a transaction and what makes for state transition.
A state machine that processes transactions the consensus rules.of crypto graphically secured blocks that acts as a journal of all the verified and accepted transitions.
A consensus algorithm that decentralizes control over the block chain,by forcing participants to cooperate enforcement of the consensus rules.
A game-theoretically sound in-centralization scheme(e.g; proof-of-work costs plus block rewards) to economically secure that state machine open environment.
One or more open-source software implementations of the above (“clients”).
It all started with idea:A digital currency
- David Chaum first proposed the concept of e-cash in 1982.
- For More Details:https://www.technologiesinindustry4.com/2020/08/linux-applications.html#more
David Chaum then founded called Digi Cash.
It was cryptography security and anonymity
Idea had same problem traditional currency,it requires central or single point of trust.
Digi cash declared bankruptcy in 1998.
Many other tried faced fate.
In 2008 as whitepaper was published,”Bit coin:A peer-to-peer Electronic Cash System” by Satoshi Nakamoto
In 2009 first-ever block of bit coin,known as the Genesis Block,was mined.
Bit Coin uses:
(a) Secure digital signatures
(b) Not requiring of party
(d) Hashing the transactions together
4. Satoshi Nakamoto is unknown person or group ,wrote the Bit coin paper.
5. Satoshi disappears in December 2010.
What’s Bit coin?/How it works?
A collection of concepts and technologies.
It behaves like conventional currencies.
Can be purchased,sold and exchanged for other currencies at specialized currency exchanges.
They are completely virtual with no physical existence.
Fast,secure and Border less
How it works?
Unlike traditional currencies,bit coins are entirely virtual.
The coins are implied in transactions that transfer value.
Users own keys that prove ownership of bit coin bit coin network.
User sign transactions with keys to unlock and spend it by transferring it to owner.
Keys are often stored digital wallet.
Possession of keys only prerequisite to spending bit coin,putting the control entirely hands user.
Created through a process called “Mining”
Every 10-minutes (on average)
Minor validate transactions
Rewarded with bit coin
A Private key Generates a Public Key
A Public obtained by subjecting key to of mathematical operations defined set of standards Elliptic Curve Cryptography(ECC).
Whereas an integer, a public a 2D coordinate composed of two integers.To make a public key easier to process,it transformed into value.One approach appends the Y-coordinate to the x-coordinate.This technique produces an “uncompressed” public key.A “Compressed”public key uses only the x-coordinate with a symmetry flag.
Private key ________ Public key _________________ Address
Private key to address: key,which 42,can be transformed mathematically into a public key.A public then transformed into an address.Each step is irreversible.This unidirectional underpins Bitcoin’s security model.
A multi-step transformation can shortened public key same as key
No network at any point generation of key or the corresponding address.Every computer on the Bitcoin network knows about the mathematical relationship between public keys.