BLOCKCHAIN

Blockchain data structure is an ordered back linked list of block transactions stared as a flat file
of simple data base. Block are linked back , each referring to the previous block in the
chain .The block chain is often visualized as a vertical stake with blocks layered on the top of
each other and the first block serving as the foundation of each stake.
The visualization of block stake on the top of each other results in terms such as height which
refers to the distance from the first block to the most recently added block .Each block within the
block chain is identified by a harsh , generated using the SHA 256 pictographic hash algorithim
on the header of the block .
Each block also references a previous block known as a parent block through the previous block
hash field in the previous header. Thus each block contains the hash if each parent inside its own
header .The sequence of hashes linking each block to its parent creates a chain going back all he
way to he first block ever created known as the genesis block .
Although a block has just one parent it can temporarily have multiple children .Each of the
children refers of the same block as its parent and contains the same parent hash .Multiple
children arise during a block chain fork which refers to temporary situation that occurs when
different blocks are discovered almost simultaneously by different miners.
Eventually only one block child becomes part of the block chain an the fork is resolved even
though a block may have more than one child, each block can only have one parent because a
block has one single previous block hash field referencing its single parent. The previous block
hash field is inside the block header and thereby affects the next block hash.

STRUCTURE OF A BLOCK
A block is a container data structure that aggregates transaction of inclusion in the public ledger
the blockchain. The block is made of a header containing meta data followed by a list of
transactions that make up the bulky of its size .The block header is 80 bites ,where as average
transactions is at least 250bites and the average block contains more than 500 transactions.
The block header consists of 3 sets of block meta data .
 1st there is a reference to a previous block hash which connects this block to the previous
block in the blockchain.
 The 2nd set of meta data namely the difficult time stamp/nonce which relate to the mining
competition.
 The 3rd piece of metadata is the merkle tree root, a data structure used to efficiently
summarize all transactions in the block.
The structure of the block header

EXAMPLE
Previous Block Header----------------------
Time stamp 2013-12-27 22:57:18
Difficulty: 1180923195*26
Nonce: 4215469401
Merkle Root: ----------

TRANSACTION
Block Height 277314
Header Harsh---------

Previous Block Header Harsh---------------

Time stamp :2013-12-27 22:55:18
Difficulty: 118092315*22
Nonce:3797028665
Merkle Root: ---------

The primary block identifiers are its cryptographic hash when a digital figure print made by
hashing the Block header twice the block height .The block hash identifiers a
block uniquely an unambiguously and can be independently derived by any node
by simply hashing the block header .The block height can also identify the first
block error created is at block height zero and block height zero and block height
increases as new blocks are created .A block can thus be identified in two ways
 a) By referencing the block hash
b) By referencing the block height
Each subsequent block added on top of the first block is one position higher in the block chain
like boxes taged on top of each of the eg the block height on 1 Jan 2017 was a proximately
446000 meaning that there were 446 000 blocks staked on top of the first block created in Jan
2009.
A blocks block hash always identify a single block uniquely however it is not always the case
with block height .Rather 2 or more blocks might complete for a single position in the block
chain .The first block in the block chain is called the genesis block and was created in 2009 .It is
the common ancestor of all the blocks in the block chain meaning that if u start at any block and
follow the chain backward in time u eventually drive at the genesis block .
NODES
Nodes refers to a bit coin node is a collection of functions routing the block chain data base
mining and called services .AII nodes validate and proper gate transactions .Every node always
knows the genesis block hash and structure the fix time it was created and even the single
transaction within .Thus every node has the starting point of the block of the block chain a secure
root from which to built a trusted block chain .Linking blocks in the block chain ) Bit coin full
notes maintain a local copy of the block chain starting at the genesis block .A local copy of the
block chain is constantly updated as new blocks are found and used to end the chain . As a node
received incoming block from the network it will validate these blocks and then link them to
existing block chain. To establish a link a node will examine the incoming block harsh eg a node
has 277314 blocks in the local copy of the block chain and the last block the node knows about is
block 277314 with a block header harsh of 2249. The bitcoin node then receive a new block from
the network , the nodes finds the previous block harsh field which contains harsh of its parent
block and as the new block to the end of the chain, making the blockchain longer with new
height of 277315.

MERKLE TREES
Each block in the bitcoin blockchain contains a summary of all the transactions in the block
using merkle tree. A merkle tree also known as binary harsh tree is a data structure used for
efficiently summarized and verify the integrity of large sets of data. A term tree is used in
computer science to describe a branching data structure but these trees are usually displayed up
side down with the root at the top and the leaves at the bottom of the diagram. They are used in
bitcoin to summarize all the transactions in the block producing an overall digital figure print of
the entire set of transactions providing very efficient process to verify whether a transaction is
included in a block.

MINING AND CONSENSUS

Mining is a mechanism that underprints the decentralized clearing house by which transactions
are validated and cleared. Mining secures the bitcoin system and enable the emergency of
network wide consensus without a central authority. The reward of newly limited coins and
transactions fees is in incentive scheme that alignes the actions of miners with the security of the
network while simultaneously implementory or controlling the monetary supply.
NB*The purpose of mining is not the creation of new bitcoin that’s the incentive system, mining
is the mechanism by which bitcoin security has decentralized .Hence miners validate new
transactions and record them on the global ledger.
Miners receive two types of rewards in return for the security provided by mining new: new can
created with each new block and fees from all the transactions included in the block .To earn this
reward miners compete to solve a difficult mathematical problem based on a cryptographical
harsh algorithm . A solution to the problem called The Proof Of Work is included in the new
block and acts as proof that the miner extended significant competing effort hence the
competition to solve the proof-of -work algorithm to earn the reward and the right to record
transactions on the blockchain is basis of blockchain model.