What is Addressing in Blockchain networks

cryptocurrency

25 Nov What is Addressing in Blockchain networks

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It has been reported that users of some Blockchain networks are assigned a cryptocurrency address which is an alphanumeric number derived from the user’s public key, plus some additional data (e.g. version number, special algorithms, etc.) using hashing algorithms.

Addresses are data that is public. At more Blockchain implementations that exist today, on file as well as data of the transaction block, its sender and recipient are recorded and stored of each transaction.

The way the addressing is done differs, depending on the way they have chosen creators of the platform to do the process. In networks that operate without the need for permission and are free, users can create infinite profiles and infinite keys with the result that each user can create as many addresses as desired.

On the other hand, in the networks that need permission to participate, each user has one or at most a small number of addresses.

An example address (of a Bitcoin(BTC) wallet) is in Figure 4 where and we see the alphanumeric address. The latter is often accompanied by a QR code corresponding to the address which can be used quickly for the easy retrieval of the address from a smartphone or a web app.

The use of addresses beyond cryptocurrency and transaction implementations (Bitcoin, Ethereum, etc.) also concerns Blockchain implementations with the use of smart contracts for the exchange of assets between contracting parties.

Block and technological features

As mentioned, when a type of transaction is made on Blockchain networks, a user sends its request to the nodes, which in turn check the transaction and act accordingly.

Transactions are added to the network when a node publishes a to the network a block. Blockchain consists of many blocks which are in a row and create a chain.

Each block can be divided into 2 parts, the header which keeps the metadata of the transaction, and the main part (body) which keeps additional information about the transactions that have been carried out.

The block features can be differentiated according to the capabilities that each network needs to have.

The head consists of 6 features:

  1. Block version (block version), which indicates the set of rules that should follow and be defined during network creation.
  2. Hashed value of Merkle tree root (Merkle tree root hash), which is the hash value of all transactions present in a block.
  3. Timestamp, which is the time a block was created expressed in seconds. In blocks, the method of its calculation is used time of UNIX systems where each second is an integer and unique number (Unix Epoch Time). The zero point is set to 01/01/1970 00:00:00 where the previous value is 0 and for each second that passes, this value is increased by 1.
  4. nBits, encoded value referring to the hash target, present at the head of the block. The target is a 256-bit value and is inversely proportional to difficulty.
  5. Nonce, a random integer which when added to one hashed block should match the difficulty level. Commonly found in Blockchains based on the Proof-of-Work consensus protocol and takes values ​​from 0 to 232.
  6. Parent block hash, 256-bit hash value was related to its value of the previous block of the series, from there the direct connection of the blocks follow between them.

The main part contains all confirmed transactions related to the block. In addition, depending on each Blockchain implementation, it may contain additional information that is deemed necessary.

The maximum number of transactions that one block can store depends on the size of the same, the transactions as well as the limit set during the construction of the Blockchain by the creators.

Learn more about blockchain and cryptocurrencies:

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