Blockchain Basics
What is....
Blockchain
Blockchain was first theorized in 1991 by two cryptography scientists W. Scott Stornetta and Stuart Haber. They were attempting to develop a system of timestamps that would prevent documents from being changed or altered.
Satososhi Nakamoto used this concept as the foundation of the Bitcoin whitepaper released in 2008. When Nakamoto introduced the whitepaper to the world it was the first time this concept been used to create a blockchain.
Blockchain itself is a collection of data saved within a chain of blocks. Each block is connected to the one before and after it by using a method of timestamping called cryptographic hashing.
Every 10 minutes the Bitcoin blockchain saves a snapshot of the transactions made during that time, forming the next block in the chain. Each time this happens the record of transactions is saved to the blockchain growing it in the process. As the chain grows the record of all transactions to ever happen on the chain are linked together. Forming a distributed and immutable ledger.
it used for?
Blockchain technology is incredibly versatile and can be used in thousands of different applications. Some examples of applications currently using the technology are borrowing/lending solutions, virtual property ownership, contracts, keeping track of digital and physical goods, and other many others.
A vital component of any blockchain is its use of nodes. A node is responsible for maintaining the integrity of a blockchain system. It does this by storing either a full or partial record of the blockchain, verifying transactions and ensuring there is no double spending.
A full node is a node that contains the complete record of all transactions that have taken place in the ledger’s history. A partial node is one that contains only a snapshot of the transactions that have taken place.
Some critics of blockchain are reasonably concerned that if all the nodes were to be destroyed it would be the end of cryptocurrency. While they are technically correct it is much more difficult to delete the entire network than one might think. Bitcoin itself has over 30,000 individual nodes spread across the entire earth. Each and every node would have to be destroyed in order to destroy the entire blockchain. While possible this is highly unlikely.
Learn More:
Blockchain Nodes | What Are Nodes and How Do They Work? (worldcryptoindex.com)
Nodes vs. Miners
To truly explain the difference between nodes and miners an understanding of crypto miners is necessary. A miner validates transactions on a cryptocurrencies blockchain. This is done through the use of advanced cryptography computing. As each block is verified it is assigned a hash mark connecting it to the other blocks in the chain. As a reward for expending the processing power necessary to verify the transaction the miner is given either a portion of the transaction fees, or they receive some freshly minted coins.
The Differences
With the current setup used to secure Bitcoin’s network BOTH miners and nodes are necessary. Nodes provide the infrastructure and database of information necessary for the continued operation of the Bitcoin network. While the miners are the “workforce” behind the blockchain. Miners utilize specialized computing equipment to verify the transactions and in turn provide this information back to the nodes to record. The miners then use the nodes to obtain the most recent hashmark for the previous block to continue the process over.
While performing different functions miners and nodes complement each other perfectly. Without the combination of the two Bitcoin as we know, it would cease to exist.
*Disclaimer: This is what is considered Proof-of-Work. Other consensus (verification) models exist, and we will touch on them in later articles.