Distributed peer-to-peer (P2P) network
last time we discussed the immutable ledger. I know articles without photographic reference can be hard to follow but I’m trying to keep things simple and well explained.
Now its time to discuss the distributed peer-to-peer (P2P) network. P2P is a type of network structure in which each node peer in the network acts as a client and as a server. the importance of this is it allows for decentralized communication and data sharing, there is no central point of control or failure. So in the context of bitcoin and other crypto, a distributed P2P network is used to maintain and validate transactions on the blockchain, easy peasy.
One of the main features of the distributed P2P network is its built in tampering protection. By tampering i mean any unauthorized modification of data on the network. In a centralized network where we have a single point of control it becomes easier for an attacker to modify data undetected. Because there is no central point of control the distributed P2P network makes it more difficult for an attacker to tamper with the data.
one main way that the distributed P2P network protects against tampering is through the consensus algorithms. These are used to ensure that all nodes in the network agree on the state of the blockchain. When were talking about bitcoin, the consensus algorithm used is called proof of work or Pow. Pow requires that the miners or nodes in the network perform a certain amount of computational work in order to add a new block to the blockchain. This makes it extremely difficult for an attacker to tamper with the blockchain, as they would need to have more computational power than all other miners combined in order to outcompete them, this is known as a 51 percent attack.
Another way that the P2P network protects against tampering is using cryptographic techniques. We use cryptography to ensure that data on the network cannot be read or modified without the proper keys. When we put this in the context of bitcoin, the transactions are signed using the sender’s private key. This ensures that only the owner of the private key can authorize a transaction.
In conclusion, we are starting to build a picture of how bitcoin works and how it coincides with blockchain P2P and the sha256 algo. I hope the picture is getting clearer now and the next article will encompass how mining works!
