Lucas Luize
Lucas Luize's Blog

Lucas Luize's Blog

Blockchain Basics.

Blockchain Basics.

A Visual Demo of Hash functions, Block data, Mining , Transactions, Keys and Gas!

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Lucas Luize
·Jun 21, 2022·

2 min read

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Hey everybody!

One of the most difficult parts of getting people you care to understand the value of this new technology is how to explain to them what it is and how it works. Let's be real here , if I were to guess I'd say that at least 70% of the people that I know have no Idea how the internet works, servers and databases, so imagine having no prior knowledge and trying to figure this blockchain out.

So... I Found this very useful website that it's definitely worth sharing. CLICK HERE

In this website you will see a couple of videos explaining in short and very detailed how it works, also you can actually play around in the different tabs to see it working live. You'll understand what hashing is, how we put all data into blocks, how we validate the blocks, append the blocks to this chain and make sure we are using the right chain through consensus!

Since it's censorship resistance because of decentralization we need consensus among all validators.

DEFINITELY RECOMMEND!

Alright things that are not in the website but should be learned as well are :

  • Gas ( Fee's that we pay for transactions )
  • Proof of Work
  • Proof of Stake

Let's Learn about Gas!

In short , the more used a network is, more expensive it gets.

Gas is the given name of transaction costs , to write data to the blockchain and get validated.

Equation ( Ethereum based ) : (Block Base fee per Gas + Max Priority Fee Per Gas)* Gas used.

breaking this down, every block as a base Fee, you will set a Max fee and Max Priority ( Tip for miners ).

You can set your Gas Limit but default in ethereum is 21.000

WEI, GWEI and Ether are units of the same currency on the ethereum blockchain.

1 ETHER = 109 GWEI = 1018 WEI.

Base Fees, Max and Max Priority are usually so small that is easier to read in WEI ( 40 WEI = 0.00000000000000004 ether)

and every transaction burns Eth by Gas Limit * base Fee, meaning that these ether are removed from circulation.

Base Fees are programmed to be enough for filling 50% of the block in data, After that fees increases.

I Think that's enough for this post, But if you are intrigued the next step would be Consensus , Proof of work and Proof of stake!

See ya~!

 
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