Blockchain Workflow

Blockchain as Workflow: Nodes, Forks, and Transaction Types

Hi! In this video, I’m going to talk about blockchain as a workflow. We’ll break this down into the following key concepts:

• Blockchain nodes
• Blockchain forks
• Types of blockchain transactions

1. What Are Blockchain Nodes?

Nodes are computers or devices in a blockchain network that help maintain the distributed ledger and ensure network security and integrity. They validate and record transactions, helping to decentralize the network and prevent tampering or censorship.

Types of Nodes:

• Full Nodes:

Store a complete copy of the blockchain and validate all transactions and blocks.

• Lightweight Nodes (Simplified Payment Verification Nodes):

Do not store the full blockchain. Instead, they rely on full nodes for data validation.

• Mining Nodes:

Solve complex mathematical puzzles (in Proof-of-Work blockchains like Bitcoin) to create new blocks and earn rewards.

• Validator Nodes:

Found in Proof-of-Stake systems like the BNB Smart Chain. Users can stake tokens to participate as validators, responsible for creating new blocks.

We’ll cover node types in more detail in an upcoming video.

2. How Blockchain Transactions Work

• A wallet stores your cryptographic keys and enables you to send/receive digital assets.
• When you initiate a transaction, your wallet connects to a node and broadcasts the transaction.
• Once verified, the transaction is added to a block and recorded on the blockchain.

Each node ensures that the blockchain remains secure and up-to-date.

3. Transaction Pool (Mempool)

Transactions are first placed in the transaction pool (mempool), a temporary space for unconfirmed transactions.

• Miners pick transactions from this pool.
• Once a transaction is included in a mined block and added to the blockchain, it is confirmed.
• All nodes are informed of this update.

This process helps maintain transparency and consensus across the network.

4. Mining & Adding Blocks

Here’s how mining works:

• Transactions sit in the mempool.
• Miners pick them and solve for a valid nonce.
• Once solved, the new block is added to the blockchain and broadcast to all nodes.
• This confirms the transaction and updates the ledger.

5. Blockchain Forks

Temporary Forks

Occur when two miners solve the puzzle simultaneously, creating two competing blocks.

The network eventually adopts the longest chain, assuming it represents the most work and is therefore most trustworthy.

Hard Forks

These are major changes to the blockchain protocol that create a new, incompatible chain.

This occurs when a portion of the community decides to split off and operate under new rules.

Soft Forks

A backwards-compatible upgrade that doesn’t create a new blockchain. Nodes that haven’t updated can still participate in the network.

6. Types of Blockchain Transactions

Public Transactions

• Stored in the transaction pool.
• Miners later pick and validate them.
• Ideal for most decentralized and transparent blockchain use cases.

Private Transactions

• Sent directly to miners or validators, skipping the transaction pool.
• Used when privacy or speed is a priority.

Final Thoughts

That wraps up our exploration of nodes, transaction flow, forks, and transaction types in blockchain systems. These foundational concepts help us understand how blockchain maintains its integrity, security, and resilience.

Thanks for watching! I’ll see you in the next video.