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authorChristian Cleberg <hello@cleberg.net>2025-08-19 22:39:50 -0500
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-#+date: <2025-07-07 Mon 00:00:00>
-#+title: Blockchain Series #1: How Blockchain Works Under the Hood: Hashes, Keys, and Signatures Explained
-#+description: Dive into blockchain's cryptographic foundations. Explore how hash functions, Merkle trees, and digital signatures secure distributed, tamper-resistant ledgers.
-#+slug: how-blockchain-works
-#+filetags: :blockchain:encryption:
-#+draft: t
-
-/This is Part 1 of a series I'm writing on blockchain. Stay tuned for further
-editions./
-
-Blockchain is one of those technologies that seems to generate more marketing
-buzz than real understanding. Everywhere you look, people talk about
-decentralization, trustless systems, and the next big disruption. But beneath
-the hype, blockchain systems rely on well-understood cryptographic building
-blocks to do something very specific: maintain a secure, tamper-resistant ledger
-without needing a central authority.
-
-If you're serious about understanding blockchain, it's critical to understand
-the cryptographic primitives that make it work. Hash functions, digital
-signatures, and public-key cryptography aren't just jargon—they're the core
-mechanisms that let a distributed network agree on a shared history no one can
-easily rewrite.
-
-This post is Part 1 of a multi-part series on blockchain. Here, we'll focus on
-these fundamental building blocks—how they work, why they're used, and how they
-fit together to provide the security and trust that blockchain promises.
-
-* What is Blockchain?
-
-At its core, a blockchain is a distributed, append-only ledger shared among
-participants in a network.
-
-What does this mean? Essentially, we can think of a standard, non-technical
-ledger (book of accounts where transactions are recorded against accounts). When
-introductin the idea of a blockchain, let's extend the idea of a standard ledger
-and make a few connections:
-
-- Each block of transactions is connected cryptographically to the block before
- it, via a [[https://en.wikipedia.org/wiki/Cryptographic_hash_function][cryptographic hash]]. This is what forms a =chain= of blocks, or
- records.
-- Each block consists of:
- - A list of validated transactions
- - A timestamp
- - A cryptographic hash of the previous block (ensuring immutability)
-- Each transaction within a block is initiated between addresses, signed with
- cryptographic keys, and sent to the blockchain for validation (e.g.,
- proof-of-work, proof-of-staking, etc.).
-- The blockchain is shared amongst nodes in the network, who agree on the state
- of the blockchain through consensus mechanisms.
-
-As we can see, the decentralized nature and cryptographic linking of
-transactions and blocks ensures that modifying the history is infeasible.
-
-If you're more of a visual person, here's a very basic diagram of a standard
-blockchain structure.
-
-#+begin_example
-+------------+ +------------+ +------------+
-| Block 1 | -> | Block 2 | -> | Block 3 |
-|------------| |------------| |------------|
-| Data | | Data | | Data |
-| Prev Hash: | | Prev Hash: | | Prev Hash: |
-| 00000000 | | <hash1> | | <hash2> |
-| Hash: | | Hash: | | Hash: |
-| <hash1> | | <hash2> | | <hash3> |
-+------------+ +------------+ +------------+
-#+end_example
-
-* What Problems is Blockchain Trying to Solve?
-
-I will be diving into the technical details of blockchains later in this post,
-but what exactly is the reason blockchain exists?
-
-You may know of cryptocurrencies, such as Bitcoin, but that is only one of many
-use cases for blockchains.
-
-As we learned in the section above, a blockchain can be equated to a ledger.
-With this in mind, let's dive into a few interesting use cases:
-
-** Immutable record-keeping
-
-If you simply need a ledger that cannot be modified easily and can establish a
-decentralized network to support that, blockchain is a great technology.
-
-** Trust without central authority
-
-The use of a decentralized system means that we do not need to rely on a
-centralized authority (e.g., Social Security, a bank, etc.) to store and provide
-access to information you need to record.
-
-Think of the US Social Security Number (SSN) system. Each time you want to
-perform actions that require verifying your identify (e.g., opening bank
-accounts, investment accounts, child birth, etc.), you are currently required to
-provide your SSN.
-
-However, this is a singular number - which means that if someone learns it, they
-can (essentially) now act as you.
-
-Now imagine a scenario where the SSN system is a blockchain where you have both
-your private key for providing evidence to people that you are you. For example,
-you open a bank account and sign your form with your private key. Now, the bank
-can take that and use your public key to decrypt the message and verify that you
-are you, without needing to know your private key.
-
-Another scenario is that, during a background check, a company could use your
-public key and consult the related blockchain to validate specific pieces of
-information. For example, if your identity alone is in one block, you could
-provide that information to your employer without providing your full SSN and
-all related personal information for as long as they keep your SSN on file.
-
-** Double-spending problem
-
-With the introduction of digital assets, such as cryptocurrencies and
-non-fungible tokens, a new risk is introduced: without control, these assets
-could be copied and reused at-will.
-
-To solve this problem, digital assets are transacted on a blockchain to ensure
-that the decentralized system of nodes provide consensus on validating
-transactions, transactions are recorded in a transparent and tamper-resistant
-manner, and cryptographic functions are performed to order the transactions
-logically on chain.
-
-* The Role of Cryptography in Blockchain
-- Why cryptography matters
-- Confidentiality vs. integrity/authenticity
-- Core goals:
- - Tamper-evidence
- - Secure identification
- - Non-repudiation
-
-* Hash Functions
-- What is a cryptographic hash?
-- Properties:
- - Collision resistance
- - Pre-image resistance
-- How blockchain uses hashes:
- - Chaining blocks together
- - Block headers
- - Transactions
-- Example command:
- #+begin_src bash
- echo -n "Hello, Blockchain" | sha256sum
- #+end_src
-- Optional diagram: chain of blocks with hashes
-
-* Merkle Trees
-- Summarizing many transactions in a single root hash
-- Use case: efficient inclusion proofs
-- Example diagram (ASCII art if desired)
-- Why Merkle roots are in block headers
-
-* Public Key Cryptography
-- Quick refresher
-- Public/private keypairs
-- Addresses derived from public keys
-- Importance of keeping private keys secret
-
-* Digital Signatures
-- Purpose: proving authorship without revealing private key
-- Mention ECDSA / EdDSA
-- How transactions are signed
-- Example snippet:
- #+begin_example
- Alice signs transaction with her private key
- → Anyone can verify with her public key
- #+end_example
-- Why signatures prevent forgery
-
-* Bringing it All Together: Blockchain Data Structures
-- Block structure:
- - Block header with previous block's hash
- - Merkle root
- - Timestamp, nonce
-- How the chain ensures immutability
-- Example flow:
- 1. User creates a transaction
- 2. Signs it
- 3. Transaction included in block
- 4. Block hash links to previous block
-
-* Proof of Work (Optional)
-- Hash puzzles to add blocks
-- Why it's hard to modify history
-- Keep this section simple
-
-* Conclusion
-- Summarize how these primitives work together
-- Tease next post: "Next, we'll explore security threats and how blockchain
- networks mitigate them."
-- Optional links to further reading:
- - Bitcoin whitepaper
- - Ethereum docs
- - Cryptography references
-
-* Optional Extras
-- Glossary box with terms (hash, signature, Merkle tree)
-- External references (e.g., NIST docs on hashes)