Someone in 90s wanted a world where you won't have to trust any 3rd parties (mostly banks) and thus came up with the concept of blockchain
Good idea? Yes
Does anyone care? No
No one cared until 2009 when apparently everyone was undergoing a financial crisis due to poor management of some banks 🙄
That's when a Satoshi guy created Bitcoin using the blockchain concept (you see how crypto & blockchain are connected?)
Blocks contain 3 things - some info, a hash code of its own and a hash code of the previous block
Think of hash as a fingerprint. When any of the 3 things of a block changes, the hash code changes too 👀
If you change info of your copy, other devices will detect that it's different from theirs and will reject it. Hacker ki mehnat waste. 😌
They'll have to hack more than 50% of the network to actually hack
And what info? That can depend on the type of blockchain. For example, bitcoin's blocks contain info about the sender, the receiver and the amount of Bitcoin 🪙
To tackle this, b.c. has something called proof of work - a mechanism that will slow down the process of alterations in blocks/creation of new blocks.
Example - it takes 10 minutes to change 1 block in the Bitcoin b.c. and there are sooo many 😵💫
"Hacker thak jayega" ~ me
"Aur vo dheere dheere hack kar le to?" ~ again me
For this, it has something called peer-to-peer network. Meaning that all the devices (called nodes) that enter the network will have a copy of the chain.
That's all? No. Secure kaise hai vo bhi batati hu ruko.
Suppose a hacker changes the info of a block which will also change its hash code. It means that the "hash code of previous block" part of the next block will also have to change 🤔
In short, if you change one block of b.c. then all the following blocks will become invalid unless you change them too.
Complex, no? No. 🙂 Computers CAN change 1000s of hash codes in seconds.
Wtf, where's the security then?
The mechanisms to do these pickings are called consensus algorithms. There are a lottt but sabse famous wali are these two-
1. Proof of Work (sabke daddy) 😈
2. Proof of Stake (daddy ki smart beti) 😎
No better way to learn something than to actually do it
You might fail 10 times but then you know 10 things not to do that may not be found in the books
I know some really cool artists who are not so popular yet but seeing them creating art regardless of how many people see it is just... 💖
Y'all have my respect :)
So if blockchain is decentralised, who's there to make sure that every transaction is legit? 🤔
Everyone have the access but not everyone joins the network to be the police, right?
That's where the consensus model comes into place. Naam dekh ke mat bhago. Ruk jaooo 😬
It's just a mechanism that makes sure that everyone in the network approves of the new blocks added to the chain
Let's say a new block has to be added to the blockchain
Firstly, we'll need someone to add it and secondly, we'll need everyone else to trust the one who adds it.
Buttt everyone's anonymous on the web so how can we pick someone and trust them? 🤷♀️
I randomly remembered that i was trying to learn everything that adults do before becoming one so that when i turn 18, I'm prepared for everything. Lmao
Gaiz if you know how to grow a reddit community and have decent knowledge of telegram as well, I've got a hawt ass opportunity for you 🔥
Brownie points if you're into crypto stuff as well!
Dm me/reply to this tweet
What do we get in return of solving it? Rewards (such as Bitcoins)
What is this process of solving problem called? Mining ⛏️
Why did I call it the daddy? Because Bitcoin uses it 🥸
Proof of Work mein everyone is given a mathematical problem to solve and the one to solve it first gets to add the new block.
Easy, no? No 🙂
The problem ain't like 2+2. You'll need crazyyy level of electricity to solve it. 🙃
But why ain't daddy a good option? 🧐
1. People waste SOOO MUCH electricity in mining just to get rich quickly
2. People are creating mining pools jisme a group of people mine collectively so that unke rewards pane ke chance badhe
The logic behind this is that if someone's investing a lot, they are less likely to be fraud.
So some rich people are randomly picked to validate all the transactions
Transaction fees will be given to them as reward 🎖️(obviously less than their invested money)
In PoS, you don't have to sit and mine for hours and wait to get lucky. Just invest a good amount and hope to get picked as a "validator"
Let me clarify. Ruk jao ✋
Now if such a group keeps growing, wouldn't they get all the power of the b-chain and it will become centralised? 🤷♀️
Sooo, in drawbacks ko tackle karne ke liye we have another option - Proof of Stake!
@awwmitmishra
@warikoo
Now that's something I can write another thread on 😂
I've actually made this a habit to talk to new people every week. Recently me and him were having a convo via email about something he wrote in his newsletter and after 3 mails i thought why not try him this week? :)