Blockchain Functional Overview

A schematic analysis of the functional flows in a public permissionless Blockchain based on Proof of Work (PoW). Bitcoin was the first Blockchain application based on a public permissionless PoW-based Blockchain 

Blockchain functional overview

Blockchain intro in 1 slide


09:11 let's focus now on the user's software or the wallet, with a first functionality that allows users to create and hold public private key pairs. 

09:29 now what are public private key pairs? These are actually our identity on the blockchain the public key is kind of the equivalent of our bank account number, and the private key is kind of the equivalent of our password

09:50 that allows us to access our data and that allows us also to authorize transactions on our ownership

10:00 okay now the public key is kind of -as i said- the equivalent of a bank account number and thus needs also to be communicated to interested parties in the real economy in order for others to be able to write transactions towards us

10:20 okay? so the public key, we can publishing it on our website or insert it in a direct message to someone who needs to make a transfer to you

10:46 okay, a second functionality of the wallet allows the user to create and sign transactions. Important to note here is that it will be the private key that allows us to sign transactions. Now the transactions are of course transactions that happen between public addresses that are available from actors in our society and economy 

11:13 okay, now when the transaction has been signed by the owner of the asset, well then that transaction is broadcasted, published towards the network of participants, that global network of participants that is connected to each other over the internet

Blockchain intro in 1 slide