Vitalik Buterin, ethereum’s founder, has proposed on this very fools’ day to cap ethereum’s supply to “120,204,432, or exactly 2x the amount of ETH sold in the original ether sale.”…
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blockchains are built from three principal technologies
1) private key cryptography
2) P2P Network( a distributed network)
3)blockchain’s protocol ( incentive to service the network’s transactions, record-keeping and security.)
private key
private key cryptography use to authenticate by providing a powerful ownership tool. Important of a private key is it provide ownership.For example two people A and B wish to transact over the Internet. Each of them have a private key and a public key. This Private Key is used to derive the Public Key. You can know your own Private Key, and everyone else on the Blockchain knows their own Private Key, but the Private Key should not be shared with outsiders. Both the Private Key and the Public Key are large integer numbers, but since these numbers are so large, they are usually represented using a separate Wallet Import Format (WIF) consisting of letters and numbers.Example to Private Key: xc5D7603595D7A9742E149689E1ecd26E393B9B0A
The Private Key is used to mathematically derive the Public Key, which (along with information about the network and a checksum)is then transformed with a hash function to produce the address that other people can see.
The main purpose of this component of blockchain technology is to create a secure digital identity reference. Identity is based on possession of a combination of private and public cryptographic keys.The combination of these keys creating an extremely useful digital signature.
This digital signature provides strong control of ownership. But it is not enough to secure digital relationships. Thus, it must provide an authorization to preserve the trust of users.
For blockchains, this begins with a distributed network.
distributed network.
Authentication is not enough. Authorization needs a distributed, peer-to-peer network as a starting point. (Authorization means it consider about broadcasting the correct transaction type and having enough money, ect )
A distributed network reduces the risk of centralized corruption or failure.
This distributed network must also be committed to the transaction network’s record keeping and security. Authorizing transactions is a result of the entire network applying the rules upon which it was designed (the blockchain’s protocol).
When cryptographic keys are combined with this network, a super useful form of digital interactions emerges. The process begins with A taking their private key, making an announcement of some sort and attach it to B’s public key.
Protocol
A block have a digital signature, timestamp and some relevant information. Then it broadcast to all nodes in the network.
Network servicing protocol
sending and receiving money is the best example for application of blockchain. The goal of the protocol is to eliminate the possibility that the same currency is used in separate transactions at the same time, in such a way that this would be difficult to detect.
The type, amount and verification can be different for each blockchain. It is a matter of the blockchain’s protocol — or rules for what is and is not a valid transaction, or a valid creation of a new block. The process of verification can be tailored for each blockchain. Any needed rules and incentives can be created when enough nodes arrive at a consensus on how transactions ought to be verified.
