Lecture 2 — How Bitcoin Achieves Decentralization

Second lecture of the Bitcoin and cryptocurrency applied sciences on-line course.

For the accompanying textbook, together with the free draft model, see:

On this lecture (click on the time to leap to the part):
* Centralization vs. decentralization 1:12
* Distributed consensus 4:45
* Consensus with out identification: the block chain 17:46
* Incentives and proof of labor 35:43
* Placing all of it collectively 55:39

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44 COMMENTS

  1. Amazing…I doubled it you must check it out

    I started with few btcs and doubled it 4 times and now I have btcs 0.33.
    I know its not much but what if you are getting it for free all transactions are open..
    Check it

  2. I’m currently studying cryptography and distributed systems algorithms in detail. What else should I study to get to eventually master the concepts and algorithms used for cryptocurrencies and bitcoin inspired systems?

  3. This video appears to be possibly deinterlaced with the wrong field order. For whatever reason there is some weird jutter going on.

  4. You can’t decentralize BTC software development which is a flaw.  We have to trust core developers.  Only a few people in the world have the technical competencies/time/motivation to verify/validate their work.

  5. That was absolutely fantastic. Aravind is a really great lecturer and clearly practiced this well in advance for our enjoyment. The subject matter is perfectly explained. This series so far is pure awesome. I’m so glad I waited until they were all released, I can’t stop watching!

  6. donate me a little of your eth to time joining criptomordas already managed to gather $ 14 pretento join the 100- dollar minimum to buy a better computer and start amineirar Thank address  eth        0x806915cd7eed000991d5fca1e0fb9feb536c3024

  7. Awesome lecture. But I have a question: If you wait for n Blocks to be passed, that contain your transaction, and the probability of double spending decreases exponentially, there is a probability of double spending (independent of n). From a purely mathematical point of view, considering the huge number of transactions made, that would imply that there were a finite number of double spending attempts that actually succeeded, and this number is growing. Doesn’t than the probabilistic argument imply that the Bitcoin- system is inherently faulty?

  8. 22:53: Does every node lists (almost) every outstanding tranactions or is there sort of a distribution of the outstanding transactions among the nodes?

  9. why higher computing power node not aways win? if searching algorithm brute force searches space in given order, faster computer will always discover search space faster and therefore always win.

  10. can some nodes broadcast , that there are 2 transactions which are specious (after all there is a big chance that all nodes see 2 transactions from the same address while block is mined, do quick check and reject it – or broadcast that these 2 trans are malicious ?)

  11. To friends I urgently need 500 dollars in crypto currency. I ask you to help someone who can. If I do not find this amount, I will be convicted. Who wants to know more by mail [email protected] than 10 000 satosh from each that I do not need.Thank you for understanding. here is the requisition

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  12. So what Silicon Valley TV series picturised about 51% attack is all wrong. Rules of network cannot be changed??

  13. I’m from the future, 2019. Ummm…. bitcoin is now just store of value… you will experience a crash in 2018…. next bull run will start in 2019. …that is all…

  14. The Sad thing is ALL those people who knows in advance these technology including advanced nations had ganged up on 1person who onLy wants Peace for all Nation even linking HIM as a VIRUS#
    #DIZONTRALISATION…#BITCOIN
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    and you think i am happy with what all yoi done?#FUCKEYOURTHEORIESGODLESS!!

  15. Minor correction at 52:56 : the first word of Poisson process should be pronounced pwa-sawn , not poy-zone.

  16. If this doesn’t work for you … hit g13tech_ on IG … he’s so good at this..trust me …. he’s An overall expert!..

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  17. -I kind of “not convinced”, or have questions, about some issues:
    1-Why do u accept a Nonce that leads to just “less than”(<) target instead of exactly equal (=) target? Doesn't this make it easier; ie. loosing the constraint and hence the no. of trials needed somehow??? 2-Like cryptography, isn't there a possibility that miners make hash tables for possible repetitions with time??? (There are an eneromus no. of available plain block-hash pairs that increase with time, I think this maybe was one of the reasons for halving the block reward with time) . 3-Could mining itself be done in a distributed manner?For example by hacking a bunch of devices as botnets? This came into my mind because I see mining from Cryptographic view as a brute force attack on the hash fn., and I recall when they performed trials to decrypt cipher pairs through volunteers over the wide globe of the internet. . 4-This is from life experience in internet application (some how use similar techniques) Can a double spending attack happens the reverse way..the seller charges the buyer twice?how can the system defferentiate bet. a normal repeated buying/usage of some service, and an attempt of double charging, or even worse someone is hacking ur device and wants to get a free ride by simultaneously repeating ur transactions????

  18. First lecture was a little bit more “technical”. This one is easier to understand but I had to watch some parts again and again. Hope this lecture series will help me to understand my investments on cryptocurrencies. Thanks for your precious effort!..

  19. Lot of information. but towards the end you start understanding it as it all gets put together.

Comments are closed.