Transaction

Introduction

...l institutions cannot avoid mediating disputes. The cost of mediation increases transaction costs, limiting the minimum practical transaction size and cutting off the poss...

Transactions

...wner transfers the coin to the next by digitally signing a hash of the previous transaction and the public key of the next owner and adding these to the end of the coin. A...

Proof-of-Work

...────┐ ┌──────────┐ │ │ ┌──────────┐ ┌──────────┐ ┌──────────┐ │ │ │ Tx │ │ Tx │ │ ... │ │ │ │ Tx │ │ Tx │ │ ... ...

Network

... that were working on the other branch will then switch to the longer one. New transaction broadcasts do not necessarily need to reach all nodes. As long as they reach ma...

Incentive

By convention, the first transaction in a block is a special transaction that starts a new coin owned by the creator...

Reclaiming Disk Space

Once the latest transaction in a coin is buried under enough blocks, the spent transactions before it can b...

Simplified Payment Verification

...'s convinced he has the longest chain, and obtain the Merkle branch linking the transaction to the block it's timestamped in. He can't check the transaction for himself, b...

Combining and Splitting Value

... possible to handle coins individually, it would be unwieldy to make a separate transaction for every cent in a transfer. To allow value to be split and combined, transact...

Privacy

...meone is sending an amount to someone else, but without information linking the transaction to anyone. This is similar to the level of information released by stock exchan...

Calculations

...y that never belonged to the attacker. Nodes are not going to accept an invalid transaction as payment, and honest nodes will never accept a block containing them. An atta...

Introduction and Existing Concepts

...various metacoin protocols aimed to build additional layers on top of Bitcoin's transaction format. While these approaches showed promise, they were ultimately constrained...

Bitcoin As A State Transition System

...ll existing bitcoins and a "state transition function" that takes a state and a transaction and outputs a new state which is the result. In a standard banking system, for ...

Mining

... to build a decentralized currency system, so we will need to combine the state transaction system with a consensus system in order to ensure that everyone agrees on the o...

Merkle Trees

...structure used in Bitcoin blocks to enable efficient and secure verification of transaction inclusion. A Merkle tree is a binary tree of hashes where the leaf nodes contai...

Alternative Blockchain Applications

...to represent alternative assets on the Bitcoin blockchain by "tagging" specific transaction outputs to represent ownership of real-world assets, company shares, or other c...

Scripting

...ographic conditions, and ultimately return true or false to determine whether a transaction is valid. While this simplicity provides security benefits and makes formal ana...

Ethereum

...zed applications where they can create their own arbitrary rules for ownership, transaction formats, and state transition functions. Rather than designing a protocol for s...

Ethereum Accounts

...trolled by their contract code and are activated when they receive a message or transaction. Both types share a common structure: every account has a nonce (a counter used...

Messages and Transactions

...a packages created by externally owned accounts and broadcast to the network. A transaction contains the recipient address, a cryptographic signature proving the sender's ...

Ethereum State Transition Function

The Ethereum state transition function APPLY(S,TX) -> S' defines how a transaction transforms the blockchain state, and it follow...

Code Execution

...ple and deterministic: every node running the EVM with the same input state and transaction must arrive at the same output state, ensuring consensus across the network. T...

Blockchain and Mining

...n is fundamentally similar to Bitcoin's, serving as a database containing every transaction ever executed. However, while Bitcoin stores only a transaction list, Ethereum ...

Token Systems

...X units to account B, with the condition that A had at least X units before the transaction and the transaction is authorized by A. The implementation requires maintaining...

Identity and Reputation Systems

...es, public keys, or other information). Anyone can register a name by sending a transaction to the contract along with a small registration fee, provided that name is not ...

Further Applications

...multi-sig wallet might require any two of three designated parties to approve a transaction before funds can be spent, useful for escrow arrangements, corporate treasuries...

Miscellanea And Concerns

..., a multiplication operation costs 5 gas, a SHA256 hash costs 20 gas, and every transaction has a base cost of 21,000 gas. Users specify both a gas limit (maximum gas they...

Abstract

... designed to leverage the properties of the Bitcoin blockchain -- decentralized transaction processing, cryptographic security, and transparent public record-keeping -- wh...

Technology Stack

...rate that makes 51% attacks economically impractical for any known actor. Every transaction recorded on the Bitcoin blockchain benefits from this security model. By buildi...

Process of Tethering

... Once the fiat deposit is confirmed, Tether Limited broadcasts a "Grant Tokens" transaction on the Omni Layer, creating the exact number of tethers corresponding to the de...

Use Cases

...r can move USDT from one exchange to another in the time it takes for a Bitcoin transaction to confirm (typically under an hour), compared to days for a fiat wire transfer...

Advantages

...cy advantages that traditional financial instruments cannot match. Every tether transaction is recorded on a public, immutable ledger maintained by the most computationall...

Challenges and Risks

...traints on Tether's scalability and cost structure. Bitcoin's block size limits transaction throughput to approximately seven transactions per second, a capacity shared wi...

Conclusion

...parent architecture. The three-layer system -- Bitcoin blockchain for immutable transaction recording, Omni Layer Protocol for token issuance and management, and Tether Li...

Introduction

... emerged as alternatives to traditional banking infrastructure, promising lower transaction costs, faster settlement times, and broader financial inclusion. However, these...

Definition of Consensus

...irmation that the consensus round completed successfully across the network. **Transaction Set.** A transaction set is a collection of transactions proposed for inclusion...

Existing Consensus Algorithms

... to exceed $150 million, a cost ultimately borne by users of the system through transaction fees and inflation. - **Throughput.** Bitcoin's block size limit and 10-minute...

Ripple Protocol Consensus Algorithm

...ver computes the overlap between the received proposals and its own proposal. A transaction is retained in the server's updated proposal if it appears in at least a thresh...

Formal Analysis of Convergence

...t servers `s_i` and `s_j` close different ledgers. This means there exists some transaction `T` that is in the final transaction set of `s_i` but not in the final transact...

Simulation Code

...t servers, withholding proposals, sending proposals with deliberately different transaction sets, and attempting to fork the network by supporting different transactions i...

Discussion

...further increased by optimizing the consensus round duration and increasing the transaction capacity per round, though this must be balanced against latency and network ba...

Abstract

...ensus mechanism, a data plane optimized for streaming (Turbine), a mempool-less transaction forwarding protocol (Gulf Stream), a parallel smart contract runtime (Sealevel)...

Introduction

...roducing hashes as fast as the hardware allows. When an event occurs (such as a transaction arriving), its data is mixed into the hash chain by including it as part of the...

Outline

...e leader rotation mechanism, the data plane used for block propagation, and the transaction forwarding protocol that eliminates the need for a traditional mempool. We expl...

Network Design

... random packet loss and targeted adversarial behavior. Gulf Stream is Solana's transaction forwarding protocol, which eliminates the traditional mempool used by most bloc...

Proof of History

...rted into the PoH sequence to create timestamps. When external data — such as a transaction hash, a photograph of a newspaper front page, or any arbitrary bytes — needs to...

Proof of History Sequence

... 201 SHA256(hash_200) -- 202 SHA256(hash_201 || SHA256(Tx_A)) Tx_A inserted 203 SHA256(hash_202) -- 204 SHA256(...

Timestamp

...solution. This timestamp mechanism is important for several protocol features. Transaction expiration relies on timestamps to determine when a transaction's referenced bl...

Proof of Stake Consensus

...hich validator will lead each slot. This predictability enables the Gulf Stream transaction forwarding protocol and allows validators to prepare for their leadership slots...

System Architecture

... by the slowest pipeline stage rather than the sum of all stage latencies. The Transaction Processing Unit (TPU) is the core component of the pipeline. It consists of fou...

Performance

...hree potential bottlenecks: network bandwidth, signature verification rate, and transaction execution rate. The system is designed so that improvements in any of these dim...

Conclusion

...e architecture where block production, propagation, signature verification, and transaction execution all happen concurrently, maximizing hardware utilization. The integr...

Abstract

... multi-chain strategy that provides developers and users with choices regarding transaction speed, cost, and ecosystem characteristics while maintaining fungibility across...

Design Principles

...s heterogeneous and that different applications have different requirements for transaction speed, cost, finality, and programmability. Rather than committing exclusively ...

Technology

...networks. The Solana implementation leverages the SPL Token standard, providing transaction throughput of thousands of transactions per second at costs of fractions of a c...

Compliance Framework

...als (SDN) list and other restricted parties databases, and implementing ongoing transaction monitoring to detect suspicious activity. Importantly, these KYC requirements ...

Token Lifecycle

...inst the customer's account, confirming the amount and ensuring compliance with transaction monitoring requirements. Upon deposit confirmation, the issuer initiates the mi...

Conclusion

...tream financial services. As blockchain networks improve in scalability, reduce transaction costs, and enhance privacy capabilities, USDC will benefit from these improveme...

Abstract

... on the Scrypt proof-of-work algorithm, Dogecoin features fast block times, low transaction fees, and an inflationary monetary policy designed to encourage spending and ti...

Background

...his decision inherited Litecoin's Scrypt-based proof-of-work, its UTXO (Unspent Transaction Output) transaction model, and its general network architecture. Markus then ma...

Technical Specifications

...en as miners enter and leave the network. Dogecoin uses the same UTXO (Unspent Transaction Output) model as Bitcoin for tracking ownership of coins. Each transaction cons...

Monetary Policy

...y, maintaining network security without requiring the network to rely solely on transaction fees as Bitcoin will eventually need to do. And it replaces coins that are inev...

Network Architecture

...minating transactions and blocks across the network. When a node receives a new transaction or block, it validates it against the protocol rules and, if valid, relays it t...

Use Cases and Community

...nical properties make it well-suited for microtransactions and casual payments. Transaction fees on the Dogecoin network are typically fractions of a cent, making it econo...

Abstract

...ling limitations, Bitcoin Cash increased the block size limit to enable greater transaction throughput and lower fees, restoring the original vision of Bitcoin as a practi...

Introduction

...ly adoption and community growth. Early Bitcoin proponents frequently cited low transaction fees and fast payments as key advantages over traditional financial systems. H...

Background: The Scaling Debate

...red on a seemingly simple question: how should the Bitcoin network increase its transaction processing capacity? The answer to this question, however, touched on fundament...

The Fork

...he Bitcoin chain and 1 BCH on the Bitcoin Cash chain after the fork. The entire transaction history prior to block 478,558 was shared between both chains. One of the crit...

Technical Specifications

...e of Bitcoin, including the SHA-256 proof-of-work consensus mechanism, the UTXO transaction model, the secp256k1 elliptic curve for digital signatures, and the ten-minute ...

Transaction Throughput and Scalability

Transaction throughput and scalability are central to Bitcoin Cash's value proposition. The...

OP_RETURN and Data Applications

...N opcode, which allows users to embed arbitrary data in the blockchain within a transaction output that is provably unspendable. This feature enables a range of data-centr...

Network Architecture

...quickly. Compact Blocks (BIP 152), which allow nodes to reconstruct blocks from transaction IDs rather than full transaction data, dramatically reduce the bandwidth requir...

Smart Contract Capabilities

...n November 2018 was a particularly important advancement. These opcodes allow a transaction script to verify an ECDSA signature against arbitrary data, not just the transa...

Monetary Policy

...ned around the year 2140. At that point, miner revenue will consist entirely of transaction fees. The 21 million supply cap and halving schedule give Bitcoin Cash the sam...

Conclusion

...ity and the cost of operating full nodes. Bitcoin Cash has chosen to prioritize transaction capacity and user experience, arguing that the economic benefits of widespread ...