Homework on Blockchain and Mining Visually - Questions

1: The nature of the cryptographically link chain ensures immutability and security, and reinforces the trustlessness and integrity of blockchain as a technology.

2: A Bitcoin block contains the hash from the previous block, its transactions and a nonce.

1 Like
  1. Why is it important that the blocks are cryptographically linked together?
    A. The links act as proof of work which secure the network. As the network only accepts the longest chain it incentivises honest mining.
  2. What does the block structure look like in bitcoin?
    A. Block structure contains the nonce, previous hash, various transactions for the mempool. Output is a 64 digit hexadecimal.
1 Like
  1. Why is it important that the blocks are cryptographically linked together?
    Because if one block is changed, this block and all subsequent blocks will be invalidated and will need to be re-mined. This turns difficult for someone to change transactions on blockchain.

  2. What does the block structure look like in bitcoin?
    Itā€™s like a linked list, each block is linked to the previous block. This is because the hash of each block is also based on the hash of the previous block. Each block has a set of transactions, a hash and the nounce found.

1 Like
  1. Why is it important that the blocks are cryptographically linked together?
    to keep the system up

  2. What does the block structure look like in bitcoin?
    each block contain a link to the previous block, list of TXs, and nonce

1 Like
  1. If they were not, the blockchain wouldnā€™t be a chain anymore, only blocks.

  2. It is composed of a nonce that has to be guessed, the transaction(s), and the hash key of the previous block, all of them making a new hash key for the new block.

1 Like
  1. Makes the blockchain more secure, by making it difficult to change anything in the previous blocks without effecting the entire long chain after that one block changed. To change the links can take a very long time, which is not incentivised. So why do it.
  2. A chain of linked blocks.
1 Like
  1. Why is it important that the blocks are cryptographically linked together?
  • It is important that blocks are linked together cryptographically because it creates a PoW (Proof of Work) protocol which prevents data from being altered offering immutability.
  1. What does the block structure look like in bitcoin?
  • The block structure in bitcoin creates a hash from a structure that consists of the output of previous hash, transaction lists, and nonce.
1 Like
  1. Why is it important that the blocks are cryptographically linked together?

Ton incentivize the miners to play by the rules. It makes it extremely difficult, actually impossible, for a miner to go and change a previous block without it creating a cascade of change in the rest of the blockchain; that way it makes more sense for a miner to mine according to the rules than to try to cheat, because thatā€™s how heā€™ll make money.

  1. What does the block structure look like in bitcoin?

In each block, there is The previous blockā€™s hash, the transaction list of the present block, and a nonce randomly chosen to obtain a hash that corresponds to certain target number.

Questions ( if they get answered further in the course, I can wait :grin: ); how is the target number determined, is it by algorythm Iā€™m assuming?
And what makes a miner good or netter than another, it seems like its more about computer power than anything else?

1 Like
  1. The hash function is dependent on the previous block, data (txn within the block) and the nonce. When the blocks are linked, the following block is connected with a hash based on the prior block. With these chain of blocks, the network is secured by ensuring no transaction has been changed in previous block. If the txn from prior block is changed, the linked blocks would decouple.
  2. Block structure = Hash (prior block) + Nonce + Txn
1 Like
  • Why is it important that the blocks are cryptographically linked together?
    Blocks permanently record data. Blocks can be described as individual sheets within a digital transaction ledger (en.bitoin.it, n.d.).

  • What does the block structure look like in bitcoin?

Blocks are chronologically organized sequentially. The terminology for chronologically sequential blocks is known as the block-chain.

Best Regards

References
En.Bitcoin.It, (n.d.), Block - Bitcoin Wiki; Retrieved From: https://en.bitcoin.it/wiki/Block

1 Like
  1. It is important that the blocks are cryptographically linked together so that it is hard or next to impossible for one miner to go back and change or alter a transaction in the blockchain.

  2. The current block hash function consists of the following; transactions in the current block, hash from the previous block and the randomly guessed Nonce. Hash on the current block also has to guess the random number called Nonce then they hash this which is represented as a number and then compare this hash to a target ā€“ target is a number that depends on the difficulty of the network ā€“ meaning the more people are mining/the more miners there are on the network the lower the target number ā€“ therefore making it more difficult for the miners to guess the nonce number. This is what consists of the puzzle each block has to solve.

1 Like
  1. It is important that the blocks are cryptographically linked together to make it impossible for miners to alter or delete any transactions in a block as doing so would completely change the hash functions of the block you are changing as well as the hash functions of all subsequent blocks. This would result in the links between the first altered block and each subsequent block being broken completely.

    Each of these blocks that the miner changed would then have to be re-mined and then the miner would need to catch up and re-mine all of the new blocks that have been created during this time. This is totally impractical as the computational power required to do this would be so great that the cost could very well be hundreds of millions of dollars if not billions of dollars and it would take thousands of years to complete.

    It is virtually impossible to alter or change a block due to the design of the blockchain.

  2. The structure of a block in the blockchain consists of the hash function of that block which is based off of all of the transactions in that block as well as all of the transactions in the previous block plus the nonce that has been randomly chosen by the network.

1 Like
  1. Why is it important that the blocks are cryptographically linked together?
    The blocks are cyptographically linked together so that it is impossible to change a previous block without invalidating and needing to rehash any subsequent blocks. This strongly discourages the motivation to alter the data within each block.

  2. What does the block structure look like in bitcoin?
    The block is comprised of the previous hash, the blockā€™s list of transactions, the nonce and the hash of the current block.

1 Like
  1. It is important for blocks to be linked together so that no one can corrupt the past without making all future blocks useless. This allows us to have security and trustlessness

  2. The block structure in bitcoin has a hash of previous block, transaction data, and a nonce

1 Like
  1. Because way like this protects it from being edited.
  2. list of all tx + previous blockā€™s hash + some random number (NONCE)
1 Like
  1. Because the hash from the next block contains the hash of the previous block.

  2. The previous hash, the transaction list and the nonce

1 Like
  1. Linking blocks cryptographically protects transaction data from being altered afterwards. Because blocks are linked together, no one can add or remove transactions to already mined blocks, because that changes the blockā€™s hash and corrupts the whole blockchain from that block on.

  2. A bitcoin block consists of hash and transaction data. A new block to the chain is mined by using the hash of a previous block, transaction data of a new block, and a nonce, a random number that is needed to hit below the current hash target. Because the hash of previous block is included in mining the next block, blocks in the blockchain become cryptographically linked.

1 Like
  1. Why is it important that the blocks are cryptographically linked together?

By having linked blocks, it becomes impossible to manipulate data

  1. What does the block structure look like in bitcoin?

hash previous block, transactions, nonce

1 Like
  1. it is important for blocks to remain linked together for security and integrity

  2. the block is made out of data which consists of the hash of the previous block , current target, nounce, block header

1 Like
  1. Why is it important that the blocks are cryptographically linked together?
    To secure the Blockchain and make sure nothing in previous blocks can be changed.
  2. What does the block structure look like in bitcoin?
    Hash of the previous block
    Transactions
    Guessed nounce
1 Like