=== Transactions, Blocks, Mining, and the Blockchain
((("bitcoin", "overview of", id="BCover02")))((("central trusted authority")))The bitcoin system, unlike traditional banking and payment systems, is based on decentralized trust. Instead of a central trusted authority, in bitcoin, trust is achieved as an emergent property from the interactions of different participants in the bitcoin system. In this chapter, we will examine bitcoin from a high level by tracking a single transaction through the bitcoin system and watch as it becomes "trusted" and accepted by the bitcoin mechanism of distributed consensus and is finally recorded on the blockchain, the distributed ledger of all transactions. Subsequent chapters will delve into the technology behind transactions, the network, and mining.
((("bitcoin", "overview of", id="BCover02")))((("central trusted authority")))((("decentralized systems", "bitcoin overveiw", id="DCSover02")))The bitcoin system, unlike traditional banking and payment systems, is based on decentralized trust. Instead of a central trusted authority, in bitcoin, trust is achieved as an emergent property from the interactions of different participants in the bitcoin system. In this chapter, we will examine bitcoin from a high level by tracking a single transaction through the bitcoin system and watch as it becomes "trusted" and accepted by the bitcoin mechanism of distributed consensus and is finally recorded on the blockchain, the distributed ledger of all transactions. Subsequent chapters will delve into the technology behind transactions, the network, and mining.
==== Bitcoin Overview
@ -284,4 +284,4 @@ As Bob spends the payments received from Alice and other customers, he extends t
.Alice's transaction as part of a transaction chain from Joe to Gopesh
image::images/mbc2_0210.png["Alice's transaction as part of a transaction chain"]
In this chapter, we saw how transactions build a chain that moves value from owner to owner. We also tracked Alice's transaction, from the moment it was created in her wallet, through the bitcoin network and to the miners who recorded it on the blockchain. In the next few chapters we will examine the specific technologies behind wallets, addresses, signatures, transactions, the network, and finally mining.((("", startref="BCover02")))
In this chapter, we saw how transactions build a chain that moves value from owner to owner. We also tracked Alice's transaction, from the moment it was created in her wallet, through the bitcoin network and to the miners who recorded it on the blockchain. In the next few chapters we will examine the specific technologies behind wallets, addresses, signatures, transactions, the network, and finally mining.((("", startref="BCover02")))((("", startref="DCSover02")))
judymcconville@roadrunner.com
7 years ago