Blockchain Blocks &

Elements
Outline
• Introduction to Blockchain Blocks
• Blockchain and block structure
• Block attributes
• Blockchain transactions
• Blockchain Hash pointers
• Merkle Tree/Merkle root
• Other general elements of blockchain
• Describe problems blockchain is solving
• Blockchain Block Browsers Overview
• How to Use a Blockchain Block Browser
• Benefits of Blockchain Block Browsers
• References
Overview

Introduction to Blockchain Blocks

Blockchain blocks are the smallest element of a blockchain; the first block is called the genesis
block. Each block contains batches of hashed and encoded transactions. The blocks are stored
in a Merkle tree formation. Every block includes the hash of the previous block in the chain that
links all blocks to one another. In Bitcoin, a block contains more than 500 transactions on
average. The average size of a block is around 1 MB. A block is comprised of a header and a list
of transactions.

.
Blockchain and block structure
Block attributes • Nonce: A variable adjusted by miners to find
a valid block hash under the proof-of-work
mechanism.
• Version: Specifies the block and protocol • Difficulty Target: Defines the level of
computational effort required to mine the
version, indicating any upgrades or rule block, ensuring consistent block intervals.
changes. • Block Height: Indicates the block's position
• Previous Block Hash: Links the current in the blockchain, starting from the genesis
block.
block to the previous one, ensuring the • Bits (Compact Target Representation):
continuity and integrity of the blockchain. A compact form of the difficulty target,
• Merkle Root: Represents a hash that simplifying the communication of the mining
challenge.
summarizes all transactions in the block, • Transaction Count: The number of
ensuring transaction integrity. transactions included in the block, indicating
the block’s transaction volume.
• Timestamp: Records the exact time the • Extra Data: Optional data field that can
block was created, maintaining the store metadata or other information specific
chronological order of blocks. to the block's consensus rules.
https://www.blockchain.com/explorer/blocks/btc
/
https://www.blockexplorer.com/transactions
https://www.blockexplorer.com/blocks
Transactions

Blockchain Transactions

Recording on the
Verification Inclusion in a Block Blockchain
Initiation
The transaction is
A user starts a transaction by broadcasted to the network, Once verified, the transaction After mining, the block is
creating a request to transfer where nodes validate it is grouped with others into a added to the blockchain,
assets. This request includes through consensus. This block. Miners compete to creating a permanent record.
sender and receiver addresses ensures the sender has solve a puzzle to add the block This ensures all transactions
and the amount being enough balance and the to the blockchain. are immutably stored and
transferred. transaction is legitimate. verifiable.

Updated blockchain ledger

Transaction request Consensus validation New block creation Immutable transaction
Digital signature Transaction approval Transaction grouping history
Hash pointers
• A hash pointer is a cryptographic hash • Hash pointer for a block of transactions
pointing to a data block, where the hash
pointer is the hash of the data block itself
• Unlike linked lists that point to the next
block so you can get to it, hash pointers
point to the previous data block and
provide a way to verify that the data has
not been tampered with.
• The purpose of the hash pointer is to build
a tamper resistant blockchain that can be
considered as a single source of truth
How does blockchain achieve this objective?
• The way it works is that the hash of the Blocks in a blockchain linked through hash
previous block is stored in the current block pointers
header, and the hash of the current block with
its block header will be stored in the next
block’s header. This creates the blockchain
• Every block points to its previous block,
known as “the parent block.” Every new block
that gets added to the chain becomes the
parent block for the next block to be added. It
goes all the way to the first block that gets
created in the blockchain, which is called “the
genesis block.
• In such a design where blocks are linked back
with hashes, it is practically infeasible for
someone to alter data in any block
Merkle Trees

• A Merkle tree is a binary tree of • Merkle tree representation

cryptographic hash pointers, hence it is a
binary hash tree
• It is named so after its inventor Ralph
Merkle. It is another useful data structure
being used in blockchain solutions such
• as Bitcoin. Merkle trees are constructed by
hashing paired data (usually transactions
at the leaf level), then again hashing the
hashed outputs all the way up to the root
node, called the Merkle root.
• In Bitcoin, the leaves are always
transactions of a single block in a
blockchain.
• Similar to the hash pointer data structure,
the Merkle tree is also tamper-proof.
Example: 3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy.

Other General elements of blockchain

• Addresses • Now, there is another advanced Bitcoin

Addresses are unique identifiers that are used in a protocol to create a P2SH address, which
transaction on the blockchain to send data to
another address; in the case of Bitcoins, addresses means Pay to Script Hash. One major
are identifiers that are used to send or receive difference with a P2SH address is that it
Bitcoins always starts with integer 3 instead of 1.
Originally, IP addresses were used as the Bitcoin Example:
address, but this method was prone to serious 3J98t1WpEZ73CNmQviecrnyiWrnqRhW
security flaws; hence, it was decided to use P2PKH
as a standard format. A P2PKH address consists NLy.
of 34 characters, and its first character is integer 1.
In literal terms, P2PKH means Pay to Public
Key Hash. They are based on the hash of the
public key and are used in standard transactions.
This is an example of a Bitcoin address based on
P2PKH:
1PNjry6F8p7eaKjjUEJiLuCzabRyGeJXxg.
Software: This wallet is installed on the actual computer; the private key access is with the owner of the machine on which the wallet's software is installed.

WalletsWebWallets:
Paper Wallets:The
These wallets
private areofbased
keys on the
this wallet arecloud andon
printed can be accessed anywhere. The private keys are shared with the wallet service.
paper.
Hardware: These are physical wallets and are small and portable in nature. The private keys are with the hardware users of each wallet.

• A wallet is a digital wallet used to store public or private keys along with addresses
for a transaction. There are various types of wallets available, each one offering a
certain level of security and privacy.
• Software: This wallet is installed on the actual computer; the private key access is
with the owner of the machine on which the wallet's software is installed.
• Web Wallets: These wallets are based on the cloud and can be accessed anywhere.
The private keys are shared with the wallet service.
• Paper Wallets: The private keys of this wallet are printed on paper.
• Hardware: These are physical wallets and are small and portable in nature. The
private keys are with the hardware users of each wallet.
Wallets

Types of Cryptocurrency Wallets

Pros Cons

● Hardware wallets offer enhanced security by ● Hardware wallets can be expensive and may
storing private keys offline, protecting them from require technical knowledge for setup and use.
online threats.
● Software wallets are vulnerable to malware and
● Software wallets provide convenience and easy hacking if not properly secured.
access for frequent transactions, suitable for daily
use. ● Paper wallets require careful handling and storage;
if lost or damaged, access to funds is permanently
● Paper wallets are immune to hacking as they exist lost.
in physical form, reducing digital risks.
 Nodes

Introduction to Blockchain Nodes

Blockchain nodes are individual computers that participate in the blockchain

network by maintaining a copy of the entire blockchain ledger. They validate
transactions, propagate them to other nodes, and help secure the network by
enforcing the consensus rules. Nodes can be categorized into full nodes, which store
the entire blockchain, and light nodes, which only store a portion of the blockchain,
allowing for quicker access and reduced resource consumption.
Nodes

• Nodes are part of a blockchain network

and perform functions as assigned to
them. Any device connected to the Bitcoin
network can be called a node. Nodes that
are integral components of the network
and validate all the rules of the blockchain
are called full nodes. Another type of
Node is called a super node, which acts
as a highly connected redistribution point,
as well as a relay station.
Node Types

Types of Blockchain Nodes

Full Nodes Full nodes maintain a complete copy of the blockchain and validate all transactions
and blocks. They provide high security and contribute to the network's
decentralization.

Light Nodes Light nodes, or lightweight nodes, do not store the full blockchain. They download
only the block headers, making them faster and less resource-intensive, ideal for
mobile devices.

Archive Nodes Archive nodes store the entire history of the blockchain, including all states. They
are used for deep analysis and research, often by developers and organizations
needing comprehensive data.
What does blockchain solve?

• Security: Due to its consensus structure • Transparency: Being decentralized in

and multiple failback points, there is nature, there is no need for a third party,
minimum chance of failure. Its distributed as blockchain is shared with everyone with
nature gives better security and reliability. a wallet, making it a transparent system
• Faster settlements: Traditional with trust.
banking protocols are very time- • Economical: Having no third party and
consuming and incur fairly large forex the ledger being shared by everyone
charges; on the other hand, Bitcoins based means no overhead costs or auditing
on blockchain offer near-instant speed, expenses.
saving time and costs for the entire
financial industry
Block Browsers

Blockchain Block Browsers Overview

Blockchain block browsers are online tools that allow users to access and explore information stored on
various blockchain networks. They provide a user-friendly interface to view transaction details, block
information, wallet addresses, and other critical data. By using a block browser, individuals can verify
transactions, track the movement of assets, and gain insights into the activity on a specific blockchain.
Block Browsers

How to Use a Blockchain Block Browser

Search for Explore Additional

Block/Transaction Review Block Details Features
Access Block Browser

Open your web browser and navigate Use the search bar to input a specific Examine the block details displayed, Utilize additional features such as
to a blockchain block explorer block number, transaction ID, or including the block height, transaction charts for transaction volume, gas
website. Popular options include wallet address. This will allow you to count, miner information, and fees, and the ability to track wallet
timestamp. This data provides insights
Etherscan for Ethereum and pull up relevant information quickly. addresses over time for
into the blockchain's activity.
Blockchain.com for Bitcoin. comprehensive analysis.

Website URL Search results page Block detail information Analytics and historical data
Block Browsers

Benefits of Blockchain Block Browsers

Transparency User-Friendly Interface Real-Time Data Access

Blockchain block browsers provide a Most block browsers offer intuitive Users can access real-time information
transparent view of all transactions on interfaces that simplify the process of regarding transaction statuses, block
the blockchain, allowing users to verify exploring blockchain data, making it confirmations, and other critical
and audit information independently. accessible for both technical and non- metrics, facilitating timely decision-
technical users. making.
References
• Antonopoulos, A. M. (2017). Mastering • Buterin, V. (2020). Ethereum blockchain
Bitcoin: Unlocking digital requirements. Ethereum.org. Retrieved
cryptocurrencies (2nd ed.). O'Reilly from https://ethereum.org
Media. • Ethereum Foundation. (2023). Ethereum
• Buterin, V. (2013). Ethereum white paper. client: Geth documentation. Retrieved
Retrieved from from https://geth.ethereum.org/docs
https://ethereum.org/en/whitepaper/ • https://www.blockchain.com/explorer/bl
• Narayanan, A., Bonneau, J., Felten, E., ocks/btc/
Miller, A., & Goldfeder, S. (2016). Bitcoin • https://www.blockexplorer.com/transacti
and cryptocurrency technologies: A ons
comprehensive introduction. Princeton • https://www.blockexplorer.com/blocks
University Press.
• Nakamoto, S. (2008). Bitcoin: A peer-to-
peer electronic cash system. Retrieved
from https://bitcoin.org/bitcoin.pdf
Thank you.