Bitcoin by Satoshi Nakomato

Summary

1. Transactions form chains such as

<prev,Private_key_payer+(hash(public key payee, prev))> which can be verified by payee using public key of payer.

1. Introduces problem of double sending.

2. Solution transaction chain is global in all peers. Group transaction into blocks and this block chain is global

3. Group transaction into blocks . Hash<prev transaction, block,nuance> change the nuance till some constraint is solved. Reason is if any previous block is changed computationally expensive to change all follow up blocks. Its easier to append than to create a new chain.longest chain is considered the truth.

4. First block in a transaction generates a bitcoin. Bitcoin miners also get transaction fees.

5. transactions in a block are reduced by merke tree hashing. Given a transaction we can verify which block it fits in.

6. Verify a transaction by checking which block it fits into.

Doubts ??

1. How do nodes verify valid transactions ?? Does it examine every block to find conflicting trasactions

Cons

Paper is not in extreme detail and does not explain key data structures or quorum concepts ?