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concepts.md

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Concept index.

This is an index of the concepts you will encounter throughout a Nakamoto blockchain.

  • Hash.
  • Signature.
  • Hashcash puzzle.
  • Work.
  • Difficulty.
    • Target.
    • Retargeting based on average solution rate.
  • Epoch.
    • Canonical epoch ID's.
  • Transaction.
    • Canonical transaction ID's.
  • Accounts.
  • Block.
  • Canonical encoding for hashing (envelope). Excluding the signature.
  • Network encoding (raw) vs. client storage (raw + metadata).
  • DAG's, trees.
    • Tip.
    • Height / Depth.
    • Heaviest chain / accumulated work.
  • Sync.
    • Greedy search. Window sizing.
    • Bit sets.
    • Parallel downloads / chunking.
  • State machine.
    • State transitions. Coinbase and regular transactions.
    • State leaf.
    • Fee payment.
    • Integer overflows.
    • State construction is map-reduce. Map transactions to state leaves through state machine transition function. Apply the effects (state leaves) to current state. Map each block, reduce to new state, feed into next block.
  • Mempool.
    • Bundles.
    • Builders.
    • Fee optimization.
    • Blockspace auctions.
    • Fee rate.
  • Mining.
    • Block template - header and bundle.
    • Nonce.
  • Peers and networking.
    • Messages.
    • RPC.
    • Gossip.
    • Heartbeat.
  • Node.
    • The kernel of the blockchain, the main loop, event handler, the wiring of the DAG, the miner and the peer.
  • Light clients ("SPV").
    • Merkle trees. Merklization.
    • Block headers. Block bodies.
  • Proof-of-work consensus.
    • Longest chain rule, game theory why this is relevant during sync.