Chapter 4. Understanding the Blockchain
"With e-currency based on cryptographic proof, without the need to trust a third party middleman, money can be secure and transactions effortless." | ||
| --Satoshi Nakamoto, Bitcoin developer | ||
Bitcoin's underlying transaction database is called the Blockchain. Its novel design, as a distributed ledger, allows it to function without any trusted central authority. Understanding how it works is essential for integrating information systems with Bitcoin. In this chapter, you will be given a simplified explanation of the blockchain's internal mechanisms. Building on the previous chapters, we'll cover the following subjects in more detail:
- Keys, transactions, and blocks
- Digital signatures
- Cryptographic hashes
- The Blockchain
- Nodes and miners
- Decentralized design
- Network attacks
- Alternative coins
