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      "body": "In the previous article, I wrote about the 2 concepts on how the blockchain technology work on hash cryptography and link.So today, this article is about on how this concept been implemented in Bitcoin and how does bitcoin mining work with easy examples.\n \nYes! Bitcoin! the first cryptocurrencies have been implemented with blockchain technology.\n \nBy the way,\n\n>Did you know? Bitcoin was created by Satoshi Nakamoto, but Satoshi Nakamoto is just a man without faces. In 2014, The world’s media though Dorian Satoshi Nakamoto is the real identity, he denied it. \n\nFor better understanding I will start by brief the flow of bitcoin process then I will explain in more deeper for each process.\n \n**Transaction request**   – You would like to send 10BTC to Alice.\nP2P network or Blockchain network with ‘Miners – The transaction request will be sent to the bitcoin blockchain network for validation and process the transaction.\n**Linked and Verified** – Your transaction will include in the block and send to the bitcoin blockchain network.\n**Confirmation**- Alice will get the confirmation from the blockchain network, indicate the transaction have been processed.\n\n**#1 Transaction request**\n\nAs soon you register in Bitcoin network, you will be provided will various choice of Bitcoin wallet. Example like ArcBit , Bitcoin core, Bitcoin Knots and others. You will have to install Bitcoin wallet on your computer or mobile phone depending on your usage.[Check out here](https://bitcoin.org/en/choose-your-wallet)! \n \nBitcoin wallet can be equivalent to the physical wallet, except it is digital and stores your Bitcoin (technically location/address) and private key.In physical wallet people usually keep a certain amount of money, identification card, license card, debit/credit card, business card and relevant thing in the wallet.Analogously:\n\n* Money is your bitcoin .\n* An identification card is your private key.\n \nAs everybody knows it, the identification card is the proof of citizenship, so do for the private key, it recognizes you as an authentic owner of the bitcoin you own in the wallet and it should be kept in secret.\n \nLet’s dive deeper,\n \nYou will be assigned to the private key and public key ( ‘cryptographic key pair’). The public key is created from the private key which it will be used to validate by the node to ensure the transaction request is actually coming from legitimate owner, where in this case is YOU. By default, your private key is 256-bit with the combination of 36 [alphanumerics](https://en.bitcoin.it/wiki/Private_key). \n\nExample: \n5CF2A070917629477FF1E7DE1DA320D35700831734F08B3C37584351A29D7676\n \nExample : \nLet’s say you are a secret agent from CIA, you were requested to send a secret message/document to your partner to another country. As an agent, you must ensure the information originality is retain. So, what you do is to create two message :\n \n \n 1. Original message.\n\n2. Encrypted message (encrypt/signed with private key).\n \n \n From this private key, you are generating a public key.The private key is used to make the encrypted message.\n\n \n* Private key: “No No here” .\n* Public key: “K **no** ck  k **no** ck  who’s  t **here** ?”.\n\nWhen your friend received that message, before he/she going to read the message, he/she will check the **original message**  and compare with the  **encrypted message**   by decrypting the encrypted message using the public key “Knock knock who’s there?”.\n\n \n If both of the messages are in the same  **shape and handwritten** , that means the message is coming from the  **true owner.**\n\n \nYou must understand why your friend decrypt back using the public key, right? it is because only through the public key he/she can open the encrypted message which has been generated from the private key.\n \n \nThis concept is called  **digital signature**  which involves the mathematical computational algorithm(hash method)and also automatic processes in the background of the bitcoin network.\n\nIn bitcoin environment, instead of sending a message, you are sending :\n \n  * Your transaction details like amount bitcoin to send \n * Private key \n * Sender address(receipt who going to receive the Bitcoin)\n \nThe transaction request by you will be signed/encrypted by your private key and this transaction will be verified by the node in the bitcoin blockchain network using your public key.\n \n \nThe main purpose is to compare the hash values between the original message and hash value of the encrypted message. If both of it same then it should consider the valid transaction.\n \n ![](https://steemitimages.com/DQmUUZuDs6iVEsfCeUN1zUy67UmBbYPNXd2ib9HYEe251ja/image.png)\n \n source from  [revasolutions.com](http://www.revasolutions.com/expertise/process-management/digital-signatures/)\n\n\n\n#2 P2P Network or Blockchain network with Miners\n \nDo you remember the last article I wrote about what it means by the P2P network in blockchain? [here](https://explorerwriter.com/ewwordpress/blockchain-technologyy-explained/). Just a brief explanation of it, blockchain network is the concept of Peer-to-Peer (P2P) where multiple nodes like your pc hardware could be used to validate transaction or mining bitcoin. Nodes basically can be anybody who installs bitcoin software and equipped with sophisticated hardware.\n \n \nAccording to Bitcoin.org mining is a process of using sophisticated hardware(eg. Mining Rig ) to process transactions, secure the network, and keep everyone in the Blockchain network organize.\n \n \nI know some of you might be interesting to hear more about the hardware but don’t worry I will discuss that in the next article.\n \nAs for now, let’s focus on the basic first.\n \nHow is this ‘miners’ process your transaction? Here i grouped the process in 3 stage .\n \n * Validation \n * Collection & block process \n * Mining\n \n\n\n**Validation process**\n \nThe transaction is propagated and validated by the nodes in the network based on the concept of digital signature I explained above. The network will check whether the amount the bitcoin is actually available and you are the owners of it based on your public bitcoin key address history. As I explained before bitcoin is public ledger where every node has the record of your bitcoin history.This process is important to prevent all transaction from conflicting with one another.\n\n![](https://steemitimages.com/DQmZmjq4HwFH6Q6s6jprKVmU7bLZ4ZRvrfchUvVHr9xWUZj/image.png)\nsource from [ybrikman.com](https://www.ybrikman.com/writing/2014/04/24/bitcoin-by-analogy/)\n\nExample:\n \nIf Alex wants to buy a carpet and decided to pay 10 BTC to Diana, there is also imposter would like to perform the same transaction, pretending he/she did it while actually didn’t, in hope that he/she can get the carpet using your BTC.This should not happen! any transactions conflict should be avoided before wrapping the transactions in the block for mining.\n \n \n**Collection and block process**\n \nThen miners will collect all of the transactions including your transaction and wrap in a block.\n \n**Mining**\n \nThe miners will perform calculation cryptographic hash function or ‘Hashing’ to the block by adding ‘nonce’. ‘Nonce‘ is just like random number the ‘miners‘ use to try with.This process is to ensure that the block cannot be produced easily. So, through this process, the ‘miners’ continuously adding nonce until they meet certain criteria(mining) and will be rewarded for doing it.Currently, the reward is 12.5 BTC, this reward will decrease halve when bitcoin block reaching 210,000 blocks, make it to 6.25 BTC.\n \n \nWhat the criteria? whoever produces the small-enough hash value  and ensure the ‘leading zero‘ is according to the current difficulty level will win! Difficulty rise as more miners and bitcoin network keep expands.\n \n \nExample formula :\n \n**block(Transactions + nonce) = Hash ( small enough)**\n\nLet’s hashing word ‘helooo’ and adding with a nonce (random number). In blockchain environment, this ‘helooo’ word will be in hash value, but just for this scenario, I will cover in a word to make it more easy to see and understand.\n \nExample:\n\n![](https://steemitimages.com/DQmbTFjwY9eQcRgUcfRePa9qxERNEaCVVk4Ljafpwpk21tj/image.png)\nFigure 1\n\n![](https://steemitimages.com/DQmdj3mofawPw8ws6d5RX99tQa8bsGipV6zt2kBAPAX2YBC/image.png)\n Figure 2\n\nYes! I got 3 ‘ leading zero‘ , which might be the current mining difficulty and smallest hash value. This successful mining data will be wrapped in another block and this block then will be added to the chain. If you notice I need to perform multiple ‘hashing’ from ‘helooo111’ until I found the leading zero at ‘heloo226′(figure 2) , this is refer to mining. Whoever faster they get to add the block to the chains and be rewarded. Try this [simulation](https://www.bloomberg.com/graphics/2014-interactive-bitcoin-miner/)! it will help you get the picture.\n\n![](https://steemitimages.com/DQmPs8uJknT8nQwSAYP88KKMdFELuGrfHB1zNbR7R89cQgn/image.png)\n source from bloomberg.com\n\n**#3 Link and verified**\n \n \nNow, if you remember from the previous post here. I wrote about the link where each block connected to the previous block.This is the part where the link is created. As soon, the ‘miners’ able to create the required block, this block will be added to the blockchain network.At this stage, your transaction is considered verified.\n \n \n**#4 Confirmation**\n \n \n The recipient will receive first confirmation as soon their transaction successfully added to blockchain network.\n \n \nHowever, the recipient is free to choose their threshold on how many confirmations they will receive, but it is safer to wait until 6 confirmation (6 blocks added after your batch block) in order to prevent double spending scenario.\n \nSummary :\n1. All transactions will be collected from the blockchain network.\n1. Nodes will validate and ensure no transaction conflicting.\n1. The transactions will be wrap in a block to be mining.\n1. The nodes will start to mine by performing the calculation cryptographic     hash function over and over until finding the small- enough hash with         leading zero. A will block will generate.\n1. This block will be submitted to the blockchain network.\n 1. 'Miners’ are rewarded.\n1. The recipient will receive the confirmation of the transaction.\n\n![](https://steemitimages.com/DQmTWv329DLoJRGyLsCWfLp9rSwjEWF5EDyA2yt2pa7KYCb/image.png)\n\nThe flow of [Bitcoin process](https://www.reddit.com/r/Bitcoin/comments/77y2yi/bitcoin_transaction_the_flow/)\n \nIf you can found this article on “How does bitcoin mining work ?”  is good, feel free to share it.   Thank You.",
      "json_metadata": "{\"tags\":[\"blockchain\",\"technology\",\"bitcoin\",\"mining\",\"process\"],\"image\":[\"https://steemitimages.com/DQmUUZuDs6iVEsfCeUN1zUy67UmBbYPNXd2ib9HYEe251ja/image.png\",\"https://steemitimages.com/DQmZmjq4HwFH6Q6s6jprKVmU7bLZ4ZRvrfchUvVHr9xWUZj/image.png\",\"https://steemitimages.com/DQmbTFjwY9eQcRgUcfRePa9qxERNEaCVVk4Ljafpwpk21tj/image.png\",\"https://steemitimages.com/DQmdj3mofawPw8ws6d5RX99tQa8bsGipV6zt2kBAPAX2YBC/image.png\",\"https://steemitimages.com/DQmPs8uJknT8nQwSAYP88KKMdFELuGrfHB1zNbR7R89cQgn/image.png\",\"https://steemitimages.com/DQmTWv329DLoJRGyLsCWfLp9rSwjEWF5EDyA2yt2pa7KYCb/image.png\"],\"links\":[\"https://bitcoin.org/en/choose-your-wallet\",\"https://en.bitcoin.it/wiki/Private_key\",\"http://www.revasolutions.com/expertise/process-management/digital-signatures/\",\"https://explorerwriter.com/ewwordpress/blockchain-technologyy-explained/\",\"https://www.ybrikman.com/writing/2014/04/24/bitcoin-by-analogy/\",\"https://www.bloomberg.com/graphics/2014-interactive-bitcoin-miner/\",\"https://www.reddit.com/r/Bitcoin/comments/77y2yi/bitcoin_transaction_the_flow/\"],\"app\":\"steemit/0.1\",\"format\":\"markdown\"}"
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      "body": "<html>\n<p>Congratulations <a href=\"/@explorerwriter\" target=\"_blank\">@explorerwriter</a>, you have decided to take the next big step with your first post! The Steem Network Team wishes you a great time among this awesome community.</p>\n<hr>\n<div class=\"pull-left\"><img src=\"https://steemitimages.com/DQmaAdLUJ3yaSkmcmWECWyPGPWcjfbCoZ8Tu4RM6H4DbjCi/steem-network-thumbs-up.gif\" alt=\"Thumbs up for Steem Network´s strategy\" title=\"I suggest Steem Network´s strategy\" width=\"320\" height=\"222\"></div>\n<h1>The proven road to boost your personal success in this amazing Steem Network</h1>\n<p>Do you already know that awesome content will get great profits by following these <a href=\"https://steemit.com/steem-network/@steem-network/spread-your-posts-through-this-proven-strategy-and-get-great-profits-in-return--for-posts-created-at-2018-03-20\" target=\"_blank\" alt=\"Steem Network\" title=\"Follow Steem Network´s suggestions to boost your success\">simple steps</a> that have been worked out by experts?</p>\n</html>",
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      "title": "Blockchain Technology Explained — Backend",
      "body": "![blockchain-3206918_1920.png](https://steemitimages.com/DQmX7bYGVdXbSQxrQnXEjpVsMpgRRKkyvRWPETQQAKknBey/blockchain-3206918_1920.png)\n\nIf to think of blockchain, sometimes pop out in my mind about cryptocurrencies like Bitcoin or Etherium. No doubt blockchain it is a technology that strives Bitcoin in becoming first successful cryptocurrencies implemented with blockchain.\n\n**Is it just that?**\n\n**How about the back of the implementation which the blockchain technology itself?**\n\nThe blockchain is a technology where the data collection stored in **decentralizing storage/ node**. What it means, instead of storing the data in the single node, the data will be stored in many nodes like the **Peer-to-Peer network**. Nodes are like your pc or any host that take part in the blockchain network. One of the closest examples is when you are using BitTorrent.\n\n**Example :** if I want to download an mp3 file call Fight song by Rachel Platten, at my client side it will fetch a chunk of data from multiple nodes until I able to download all the file and got my mp3 song.\n\nEssentially, you and your friend’s **laptop or computer** could be the node and these nodes will have a copy of the data/block in the same blockchain network! But wait, our data will be published publicly in blockchain network? what if some information needs privacy, for example, medical record or finance record. Well, don’t worry because the data store in blockchain will be a bunch of random alphanumerics.For your information Bitcoin is known as public distribution ledgers due to this concept.\n\nLet’s continues,\n\nBlockchain in fact a new technology, yet, the theory on how it works and operate have been introducing since 1991 in an article titled **\"How to Time-Stamp a Digital Document\"**. In the article Haber has introduced a concept of how digital document/information should be transferred over a network by ensuring the receiver notified it is a same digital document or has been modified.\n\nThere are **two main components** that driven this technology successfully :\n\n**1.Hash**\n\nAll data in the blockchain itself are encrypted using hashing concept in Cryptography. The original data is converted into alphanumeric instead of storing in original format by using a specific algorithm and will always be unique.The ways its work is by performing a mathematical process (algorithm) to any data type like a single letter, a word, a sentence, or an entire paragraph and produces output will always be the same length or fixed. This concept what make blockchain technology more secure.\n\nwhy?\n\nThat is because if someone is trying to modify the data, the receiver will be notified that the hash values is different from the original during sending the digital document and denied it. It is same as what Harbe said in his article. Technically, there are a few types of hash method which is **SHA-1**, **MD5**, and **SHA-256**.\n\nExample of hash value before and after the hash:\n\nYour String: Hello\nHash method : MD5\nYour Hash: 8b1a9953c4611296a827abf8c47804d7\n\nYour String: hello123\nHash method : MD5\nYour Hash: f30aa7a662c728b7407c54ae6bfd27d1\n\nIf you notice both examples are different sentence BUT the hash values however still same length or in another word it is fixed length.\n\n**2.Link**\n\nWhat is this link all about? In blockchain network data is called **“Block”**.\n\nThe block contains **3 main part** :\n\n**Relevant data**: Name, Email or transaction value.\n\n**Hash value**: The hash value of relevant data.\n\n**Previous hash value**: Hash value of a previous block or previous neighbor.\n\nThe **block is linking to another block**, a picture of a real situation like women’s necklace or your metal chain at home, but this is virtual. Each block has been tagged with previous block hash value, which means, every new block register in the network will know hash values of the previous neighbor data/block.\n\nThis makes blockchain even more cool technology! because theoretically, if every block knows one another and if any altered block was done by a hacker, the hash values will change and the other block will notice a will not be accepted in the blockchain network and to be considered invalid.\n\nSo it is impossible for anybody to tamper with the block and try to falsify it, because if they do! they have to tamper with all the block in the blockchain network.\n\n**Example**: if a new block added to the chain, and then suddenly there a hacker trying to tamper with the data, this block will definitely change to the different hash value after the tamper (hashing concept). But, the hacker have issues where the hash value before the tamper already copy to another block, so they will have to change the neighbor block too and when they do, they also have to change the other neighbor block and this will keep going on in order to make the falsify data appear legit, which is almost impossible.\n\nIt is like when you neighbor notice someone suspicious try to impersonate YOU, of courses they will notice , because they already recognize and know how your face looks like. Right? So the imposter has to convince them that you are the new owner, then need to convince the rest of the neighbor until they all agree, which does not make any sense at all and ridiculous.\n\nHow about the first block or initial block in the blockchain network?\n\nWell, this block they call it **Genesis Block**, remember I wrote before this, that each block has hash value of the previous block? Genesis does not relate to any block since it is the first of its kind in the network and usually the first block is hardcoded and logically nobody going to mess with it in the first place. Blockchain implemented based this two main concept and produce an incorruptible or immutable technology.\n\nSo how it this concept been implemented in Bitcoin or another blockchain application?\n\nThat will be my next article, stay tuned guys! Salute!\n\n*Feel free to check out original content at **www.explorerwriter.com***",
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