Blockchain transaction rejected by our node reason the transaction is not final
Working as business architecture, many resources about this new technology has been too technical for me. I had to drink a lot of coffee to understand them. By the way still learning process continues with the help of coffees. Best way of learning is to tell, try to describe. Hope these series of writing will make all of us learn more. Generally in internet; before starting to describe bitcoin, first definition of money and later digital money, finally cryptocurrency is being told.
There are great videos and essays that describe them, especially Andreas M. Antonopoulos videos are worth watching. For that reason I will just skip through and jump directly to our popular questions. If internet was a blockchain transaction rejected by our node reason the transaction is not final, bitcoin would be both its central bank and its currency.
These countries have central banks or Federal Reserve, and they issue their currencies. Central bank of Internet issues its currency as Bitcoin. I would go to supermarket, restaurant or cinema and directly pay it with my cash.
Directly, peer to peer, without any 3. After a few seconds, if I get these approvals, I can do my transaction. This requirement would be only done within a system where there is no intermediary.
But how bitcoin is different from other paperless money? What makes it so special? Is a new technology created for that? Bitcoin uses existing technologies; it gathers all these old technologies together and names it blockchain.
But as I said, it will be series of writing, and it would be unfair to use many unknowns at first article. Clarification will be done later.
So if bitcoin uses existing technologies under the blockchain name, why we have waited it for such a long time. Because, those existing technologies are like lego pieces and no one has been used legos to build a car before. Well, in fact legos have been used before to build a car many times. Bitcoin is not the first cryptocurrency, but it is for the first time going on the highway with other cars.
It is the first time bitcoin; our precious paperless cryptocurrency money can be used like a dollar, euro and yen. There are central banks, local banks, Swift, MasterCard, Visa, Facebook, Airbnb or any other intermediary in the middle. There are, because we need them, because we need to trust someone to hold our money or our data securely, because we don't trust each other.
So if there is no trusted intermediary now, who will we trust? The answer is no one! These old technologies configured that no one needs to trust each other, it is a trustless technology aka blockchain. Our trust need has not changed, but also we want more. So we have requirements. Clearly, what are those requirements?
Are these requirements doable without a trusted part? This is the big picture of bitcoin blockchain. Also there are different types of blockchains which are configured for different purposes. Bitcoin users have bitcoin wallets. It is free; you can have as many as you want. There is no limit. When you have a wallet, you can do a bitcoin payment transaction.
But where did this bitcoin come from, how do you have it? Short answer is; miners are creating bitcoins and you can buy those bitcoins on internet by exchange. As you exchange your dollar to euro, there is no difference. Wallets are like mobile banking app, and they hold passwords for you to use the bitcoins. When you do a bitcoin payment, you send the transaction order to the nodes. Nodes are just a PC, and their owners are the only volunteers in that system. So far there are around nodes all over the world.
Their owners are the people who believe in bitcoin philosophy. If these node owners are not miners at the same, they are just volunteers or revolutionary, they are doing it for free. When a node receives an order, they do many controls and check that if this transaction is valid, like banks do it now. If transaction order is valid, they send it to other 7 nodes to check it, too. In a few seconds, this blockchain transaction rejected by our node reason the transaction is not final order spreads all over the world to nodes.
Ok, now I do bitcoin payment from my wallet and send it blockchain transaction rejected by our node reason the transaction is not final nodes. This transaction order status is pending, waiting for miners to work on them.
Miners are just like gold miners, they are working hard to find the gold. They are creating money from thin air but not thick rocks. Miners are listening to the bitcoin blockchain and they are collecting those pending transactions. They can select any transactions from that pending transaction pool, but there is max 1 mb size limit.
All of the miners may have different set of transactions. When nodes receive the block, they control all the staff in that block. There are solution of the puzzle, transactions themselves, signatures, version numbers, etc. This is a trustless environment, no one trusts to each other. For that reason, everything like transactions, their signatures, puzzle itself, block size and many other controls are being done. These controls are being done by every node. This means, one block is being controlled by around nodes.
When a node approves the block, saves it. That event is continuously being done in every 10 minutes. When a blockchain transaction rejected by our node reason the transaction is not final is saved in node, it attaches to the previous block which was saved 10 minutes ago.
Saved blocks are creating a chain, blockchain. After a block is saved and added to the chain, you cannot change even one dot, one character inside it. Otherwise all block integrity changes. This is the all process for the above figure. It is time to answer the questions! First questions for the client side.
Bitcoin is a self-service system. You will create your address. Address will be your account number. When you click that button, you will have 2 long string. One will be your address account and the other will be your private key password. No, but you need to enter the private key when you blockchain transaction rejected by our node reason the transaction is not final a payment. Wallets make you define your own password, as facebook does.
Instead of entering around 50 characters, you can use your own 8 chars. Private key is not changing, but wallet makes you feel as it does. There are different algorithms for securely storing your private key. But usage is not simple yet. If you lose private key, you literally lose. There are many wallets on the internet, What if 2 different people have the same address? Always there is a probability. By the way, wallets are the weakest point in this system.
For that reason, generally hacking events are being around the wallets. By the way, there is no balance field in bitcoin, just there are transactions and transactions are held in nodes. Explained later Wallet makes you see your transactions, as if you see your balance.
It makes your life simpler with its user friendly interface. So I open my wallet, create a transaction order, and send it to nodes. Can they change my transaction order and distribute it to the network? But it is so early for segwit, now. During your payment, you sign your transactions.