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islammuinol627
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Now that we have reviewed the basics of a blockchain and its basic structure and

origin, let's consider the basic operations in a blockchain. Operations in the


decentralized network are the responsibility of the peer participants and their
respective computational nodes. For example, laptop, desktop, and server racks.
These operations include validation transactions, gathering the transactions for a
block, broadcasting the ballot transactions in the block, and consensus on the next
block creation, and chaining the blocks to form an immutable record. In this
lesson, we explore some of the fundamental operations of the bitcoin blockchain.
First, we have to discuss the participants. There are two major roles for the
participants. Participants that initiate transfer of value by creating a
transaction, additional participants called miners, who pick on added work or
computation to verify transactions, broadcast transaction, compete to claim the
right to create a block, work on reaching consensus by validating the block,
broadcasting the newly created block, and confirming transactions. You might wonder
why participant would take on additional work. Well, the miners are incentivised
with bitcoins for the efforts in managing the blockchain, as we'll find out.
Transaction validation is carried out independently by all miners. The process
involves validation of more than 20 criteria, including size, syntax, et cetera.
Some of these criteria are: Referenced Input Unspent Transaction Output, UTXOs are
valid, recall, UTXO is well-defined earlier in lesson two, reference output UTXOs
are correct, reference input amount and output amount matched sufficiently, invalid
transactions are rejected and will not be broadcast. All the valid transactions are
added to a pool of transactions. Miners select a set of transaction from this pool
to create a block. This creates a challenge. If every miner adds the block to the
chain, there will be many branches to the chain, resulting in inconsistent state.
Recall, the blockchain is a single consistent linked chain of flux. We need a
system to overcome this challenge, the solution. Miners compete to solving a puzzle
to determine who earn the right to create the next block. In the case of bitcoin
blockchain, this parcel is a computation of parcel and the central processing unit
or CPU intensive. Once a miner solves the puzzle, the announcement is broadcast to
the network and the block is also broadcast to the network. Then, other participant
verify the new block. Participants reach a consensus to add a new block to the
chain. This new block is added to their local copy of the blockchain. Thus, a new
set of transactions are recorded and confirmed. The algorithm for consensus is
called proof-of -work protocol, since it involves work a computational power to
solve the puzzle and to claim the right to form the next block. Transaction zero,
index zero of the confirmed block is created by the miner of the block. It has a
special UTXO and does not have any input UTXO. It is called the coinbase
transaction that generates a minor's fees for the block creation. Currently, the
minor's fees is 12.5 BTC for a bitcoin. This is how new coin is minted in bitcoin.
To summarize, the main operations in a blockchain are transaction validation and
block creation with the consensus of the participants. There are many underlying
implicit operations as well in the bitcoin blockchain.

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