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›3.2 Bitcoin and Nakamoto Consensus

Getting Started

  • Welcome
  • Development Setup
  • Course Overview

Ch1: Payment Processor

    1.0 Chapter Overview

    • Lecture

    1.1 Hashes and Signatures

    • Lecture
    • Code Challenge

    1.2 Payment Processor

    • Lecture
    • Code Challenge

    1.3 Replay Protection

    • Lecture
    • Code Challenge

    1.4 Account Model vs UTXOs

    • Lecture
    • Code Challenge

    1.5 Centralized Systems

    • Lecture
    • Code Challenge

Ch2: Network Models

    2.0 Chapter Overview

    • Lecture

    2.1 Networks and Synchrony

    • Lecture

    2.2 Double Spends

    • Lecture
    • Code Challenge

    2.3 Latency-Based Consensus

    • Lecture
    • Code Challenge

    2.4 Proof of Authority

    • Lecture
    • Code Challenge

Ch3 Proof of Work

    3.0 Chapter Overview

    • Lecture

    3.1 Decentralized Consensus and Blockchains

    • Lecture

    3.2 Bitcoin and Nakamoto Consensus

    • Lecture
    • Code Challenge

    3.3 Merkle Trees

    • Lecture
    • Code Challenge

    3.4 Game Thoery in Bitcoin

    • Lecture
    • Code Challenge

    3.5 Selfish Mining

    • Lecture
    • Code Challenge

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Lecture


Nakamoto Consensus

  • Learn how Satoshi Nakamoto use Proof-of-Work and built-in incentives to achieve decentralized consensus





Slides

Google Sheets

  • Part 1
  • Part 2


Ch3.2 Overview

In a decentralized network anyone can join. We need a way to choose who gets to validate transactions and submit blocks. Randomly choosing nodes doesn't work because it's cheap to create lots of nodes to overwhelm the network. We need something expensive and hard to obtain. This is the "work" part of Proof of Work. Nodes need to solve a computationally hard puzzle which takes time and energy to solve. When nodes solve the puzzle they can then use this proof of this work to the network in order to be able to submit the next block on the chain. Because it takes time and energy to solve these puzzles, there is a cost to doing so. There are also rewards for correctly solving puzzles and creating valid blocks, so people like to play this game.


Recommended Resources

Techcoins: nakamoto consensu guide and visualization - Has pictures.


Last updated on 9/6/2019 by burrrata
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