1.2 Overview of Blockchain: Blockchain Transaction Process

consensus algorithm

consensus algorithm

It is a(n) ________ in the blockchain that is used to confirm the transactions and produce new blocks to the chain.

Decentralization

________ makes the system fair and secure.

Blockchain

________ is built on a decentralized network which is identified by the peer- to- peer connection of networks that play an important role in the validation of transactions.

mathematical algorithm

The code generated by taking input and converting it to cryptographic output using a(n) ________ is hash code.

performance of transactions

It improves the robustness and ________ by directing peer- to- peer messages with minimal latency.

low energy consuming

A low- cost, ________ algorithm that states that a person can mine and validate the transaction based on how many coins the person holds.

Real time Transactions

________: Peer- to- peer consensus protocols instead of central third parties or manual offline reconciliation processes enable real- time transactions.

readable format

It is an algorithm that alters the data from plain text ________ to cipher text protected format and back to plain text.

hash values

If the ________ are equal, then the signature is considered valid and the verifier can use the document.

digital signature

A(n) ________ provides authentication and validation like normal signatures do and ensures the security and integrity of data recorded on the blockchain.

Asymmetric key cryptography

________ is used by the bitcoin blockchain to leverage the public and private keys of users to create digital signatures to initiate a transaction that is propagated through the network.

Signer

________ takes information to be transmitted and runs a hash algorithm in order to generate 32 or 64- bit hash values.

fault tolerant protocol

It is a(n) ________ that is used to achieve the necessary agreement on a single data value or a single state of the network.

consensus algorithm

It is a(n) ________ that prevents high energy consumption and resource utilization following a lottery system.

A new block is added to the blockchain

Transaction is complete

What features of the Consensus Protocol make it Efficient?

Quick and simple exchanges without the involvement of third parties

What features of the Consensus Protocol make it Secure?

Difficult to hack as it's impractical to hack numerous devices at the same time to gather data

Describe Real-time Transactions as a feature of Consensus Protocol

Peer-to-peer consensus protocols instead of central third parties or manual offline reconciliation processes enable real-time transactions

What features of the Consensus Protocol make it Reliable?

Impossible to tamper with the contents of a block without it being noticed

What features of the Consensus Protocol make it Functional?

Adopted in various industries for the development of new applications

What is the role of a miner in a blockchain transaction?

Miners are an integral part of the blockchain ecosystem who ensure fairness and keep the network stable, safe and secure by approving transactions.

Define Proof of Work

It is a consensus algorithm in the blockchain that is used to confirm the transactions and produce new blocks to the chain.

Characteristics of Proof of Work

Nonce, Hash, Transaction

Define Nonce

A random number whose value is set so that the hash of the block will contain a run of leading zeros. Abbreviation for Number used once.

Define Hash Code

The code generated by taking input and converting it to cryptographic output using a mathematical algorithm is hash code.

Define Hash Pointer

It is a pointer to the location where information or hash of that information is stored. If we retrieve information that the pointer points at, we can get the hash of the information and confirm it to be unchanged. It requires information on the previous hash.

Define Proof of Stake

A low-cost, low-energy-consuming algorithm that states that a person can mine and validate the transaction based on how many coins the person holds.

Define Proof of Elapsed Time

It is a consensus algorithm that prevents high energy consumption and resource utilization following a lottery system.

Define Practical Byzantine Fault Tolerance (PBFT)

It improves the robustness and performance of transactions by directing peer-to-peer messages with minimal latency.