Blockchain and the Bitcoin Algorithm

Blockchain and the Bitcoin Algorithm

NOTE: Understanding the Blockchain may make your eyes glaze over, but some people like all the specifics and details of how something works. I’ve included this last one in a series of 4 for those that like to dig deeper. As we have from the beginning we give all the credit on this post to it’s originator and the original article. I still believe that the information is vital to Eliminate the Confusion that surrounds this topic. My thanks goes out to Scott Maxwell for his time and expertise. The original article was written in June of 2014. Many more issues have been resolved since that time. This is Part 4 of a 4 part series. If you missed the beginning you can catch up right here:  Part 1        Part 2        Part 3 Bitcoin Algorithm – The Blockchain The publicly held history of all transactions of Bitcoin is held in what is known as the blockchain.  Starting with the creation of each Bitcoin, this shows every transfer of ownership to the present day. The integrity of the blockchain can be proven using another common encryption algorithm used throughout the Internet called SHA256.  Known as a ‘hashing’ algorithm, this is used to detect whether the data has been tampered with.  Changing even a single bit will radically change the output from the hash.                                                        Hashing algorithms prove the unbroken chain of transactions The output from the hash is a long string of bits. By including this string as part of the next transaction, the two transactions can be chained together. By combining these two, you provide a way to sign...
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