DEFI is short for decentralized finance. It’s a term used to describe the shift from traditional, centralized financial systems to peer-to-peer finance enabled by decentralized technologies built on the Ethereum blockchain. Whereas our traditional financial system runs on a centralized…
Why Bitcoin isn’t Turing Complete? Turing completeness is a programming language essentially means that the program has the ability to loop. Loops are useful construct in programming, so you may be wondering at this point why validation Script doesn’t have…
What is a 51% Attack in Bitcoin? You might have heard about a 51% attack. Allow me to explain it in simple language. When a malicious miner controls 51% of the Hashing power in Bitcoin Blockchain to change something in…
There are thousands of Miners in Bitcoin Blockchain who compete against each other to mine a Block so that they can win a mining reward of 6.25 Bitcoins. There is a possibility that two miners may solve the mining puzzle…
Miners choose transactions from Memory Pool based on the High Transaction fees because it is more profitable for them. If Miner is able to mine a Block successfully then that fee goes to Miner directly. There is a Block Limit…
Proof of work is a consensus algorithm that is used in Bitcoin and many other cryptocurrencies. Due to proof of work Bitcoin and other cryptocurrencies can be transferred peer-to-peer securely without the need to any third party. Before Bitcoin peer-to-peer…
Have you ever wondered what happens after you click on send button? Allow me to explain the process. Once you click on send button, the transaction goes to the nearest miner. Miner validates your transaction and passes it to other…
UTXO stands for Unspent Transaction Output. Let’s understand this with an example, Suppose Jane(14UwWGHekdseWyQiHNUukPzCxD36R7Bh9A) transferred 10 Bitcoins to Alice. In this transfer process, the output transaction to Alice(1ANFCGTSgVRiUjcp6V1sWdpZrSqtFomb4q) is called UTXO. So, UTXOs are just outputs. Let’s assume that after…
What is a Coinbase Transaction? Coinbase transaction is the first Transaction in every Block and it can only be created by the miner. Miner creates a Coinbase transaction to collect their block reward when they successfully mine a block and…
What is Bitcoin Transaction Life Cycle? Let’s understand this with an example, suppose Jane wants to send 10 Bitcoins to Alice? Jane will use a wallet service provided by Codies Alert that can create Jane’s Transaction and Broadcast it to…
