What are the connected peers on Bitcoin

Blockchain

With a distributed ledger (in German: distributed ledger) is a public, decentralized ledger. The content of the ledger (usually a series of transaction data which, for example, document account movements) is created jointly in a computer network. A copy of the data is available on every node in the network.

If Hugo Paul transfers the money for the hat using a blockchain application, this transaction is saved in the distributed ledger and is henceforth traceable for all participants in the corresponding application.

Instead of a real currency such as euros or dollars, blockchain networks usually use digital currency equivalents such as Bitcoin, Ether, Litecoin or Dash for use.

The distributed ledger concept is based on Peer-to-peer networks realized that enable communication between computers of the same rank. Changes to the database are only made if the nodes involved in the network come to a consensus.

Digital values ​​are not transferred from A to B in blockchain P2P networks. Instead, all participants keep a copy of all transaction data in anonymized form, from which it can be clearly seen who has what digital value at what time. When changes are made to the database, each replica is saved on each participating node synchronized with the latest version of the blockchain. The participants interact with the blockchain via client software that regulates both the consensus procedure and the replication of the database.

Changes to the database are only accepted if all participating computers agree by a majority that the change is legal.

If the majority of the computers involved accept the change, the new state of the blockchain is adopted by all participants. If, on the other hand, the majority of participants find that the change cannot be lawful, for example because Contradictions with older replicasthe blockchain are recognized, it will be rejected by all participating computers. A computer that wants to make changes to the blockchain must therefore prove that it is authorized to change the shared database.