SEC S17W1|| The blockchain sequencers

There are some building blocks of blockchain I'm explaining below;

1. Blocks

Blocks is one of the most significant building block which contains multiple set of transactions and other sensitive data.

2. Transactions

Transactions are basically record of actions made at blockchain for exchange of data that has been occurred in between participants.

3. Hashes

Hashes some of the unique identifiers that are created for each and every block and that are important for integrity.

4. Cryptography

Cryptography are one of the encryption techniques that keeps the data secure and private by implementing encryption algorithms.

5. Consensus Mechanism

Consensus mechanism are basically protocols that are responsible for agreement regarding validity of transactions.

6. Decentralization

Blockchain building block is also decentralization because there are network of computers that are responsible for making blockchain free from manipulation of any Central authority and to censorship.

7. Merkle Trees

Merkle trees are also one of the most significant building blocks of a blockchain that are responsible for verifying the integrity of transaction within a block in one of the most efficient way.

8. Smart Contracts

Smart contracts are basically one of the most important fundamentals and building blocks of a blockchain which are self executive contracts in which there are predefined rules and conditions.

9. Public/Private Keys

Public or private keys are basically cryptography keys that are used when you have to make any kind of transaction and when you have to secure your personal data from any unauthorized access.

10. Network

There are basically some of the interconnected nodes in blockchain that are responsible for maintenance of blockchain integrity and huge for updating any blockchain protocol.

Now I am explaining the process of transactions sequencing in the following points;

• Transactions are first collected from those who are participating in network or blockchain.

• Transactions after that proceeds further to group together in form of blocks.

• Miners are also present in blockchain for solution of complex mathematical equations and for transactions verification.

• The miner who is solving first the problem means is adding new block to the blockchain.

• The new block which is created recently would contains a reference of previous block and in this way it would form a chain.

• The transactions that are within the new block are considered that these are now confirmed and no one can alter them.

• The network use consensus mechanism for verification and validation of transaction.

• Right after confirmed now transactions cannot be altered at any cost.

• The process repeat itself until many new blocks adds in chain form and form a blockchain.with new blocks continuously added to the blockchain.

• In this way transactions are created in sequential and transparent way in a blockchain.

Regarding STEEM blockchain sequencers working I am highlighting some of its necessary characteristics.

• STEEM Blockchain is using delegated proof of stake as its consensus mechanism.

• Delegated proof of stake has its reliance on set of elected block producers which we often called witnesses at this blockchain.

• When I talk about witnesses then they have responsibility in the creation of blocks and before this in the validation of transactions.

• When I talk about top 20 witnesses then they help out in production of blocks.

• In each 3 seconds witnesses take their turn for creation of blocks.

• If I talk about order of production of block then it is determined by voting power which we often called stake.

• Witness which is with high stake would have more better chances in the creation and production of block.

• In this way it allows for fast transaction time and increase in scalability.

• Witnesses also receive benefits in the form of block rewards as a result of work that they do in block creation and block verification and validation.

• STEEM blockchain has one of the most interesting feature which is content Discovery and at this blockchain everyone is free to upvote and curate content and in this way they earn STEEM tokens by Content creation and curation.

• Due to STEEM blockchain sequencers it maintains balance in distribution of rewards in fair way.

• Sequencer at STEEM Blockchain would also consider that how much a user's reputation and voting power is.

This is I have shared my explanation of STEEM blockchain sequencers working by the help of this graphical is illustration and by the help of this flowchart in which you can see series of steps which are total 6 in their numbers.

Someone is making a transaction
Implementation of sequence algorithm
Role of witness in verifying and validating transaction
Creation of block
Validation of block
Block addition to blockchain

How STEEM blockchain sequencer is showing their contribution for consensus I am explaining in the following points.

• STEEM blockchain sequencer is playing its crucial role for achieving consensus in between participants.

• It gives surety that transactions would be validated and would be added into the blockchain in a fair way and in a proper sequence.

• STEEM Blockchain sequencers are allowing the elected witnesses for producing blocks and for maintaining consensus by showing their reliance at delegated proof of stake mechanism.

• Witnesses voting power is a key to determine that what should be the order of production for blocks.

• In STEEM blockchain there is an decentralisation approach which gives no authority to a single entity to take over the control on consensus process.

• STEEM blockchain sequencer is helpful in preventing double spending and fraudulent activities by maintenance of transparent record of transactions.

• Integrity and immutability of STEEM Blockchain maintains through this continue and smooth operation of sequencer which gives block creation and transactions validation surety.

• STEEM Blockchain sequencer roles are crucial for maintenance of stability and decentralization of STEEM blockchain.

There are different types of consensus mechanism that are used in different blockchains.

Proof of Work (PoW)

Proof of work is a consensus mechanism in which there are group of peoples which are called miners that complete with each other for the solution of complex mathematical equations and then they get different blocks of transactions and they add into the blockchain.

Proof of Stake (PoS)

Proof of stake is consensus mechanism in which there are validator which are choose depending up the number of tokens they hold and the more they have staked tokens the more they have chance to very get the transactions.

Delegated Proof of Stake (DPoS)

Delegated proof of stake is a consensus mechanism which is used by STEEM blockchain in which there are elected delegates take their turn to create blocks and to verify transactions which gives surety of fast transactions confirmation times.

Practical Byzantine Fault Tolerance

In this type of consensus mechanism,there is a voting process used by validators for showing their agreement on order of transactions for achievement of consensus quickly.

Proof of Authority (PoA)

Validators are selected depending upon their reputation and authority they are responsible for validation of transactions and for creation of blocks accordingly.

Proof of Elapsed Time (PoET)

This is a consensus mechanism in which validators are selected in random way and validator who have shortest waiting time gets the opportunity to validate next block.

Proof of Burn (PoB)

This is again on census mechanism in which validator show a prove that particular amount of cryptocurrency has been burnt by them so they have right to validate transaction in this way.

So these all are some of the consensus mechanism that are playing their role in maintenance of security,scalability and efficiency in blockchain by the determination of the way of transaction validation and their addition in blockchain

The different consensus algorithms used in blockchains influence the transaction sequencing process in the following ways:

• Proof of work gives surety that miner who tends to solve computational equations would get the opportunity to add block of transaction first to blockchain so this is its influence.

• Proof of stake is allowing validators that have high holdings of tokens in network to have more chance in validating and sequencing of transaction so this is its influence.

• When I talk about delegated proof of stake then they use elected delegates for taking turn to produce blocks and to decide that what should be the order of transactions so this is its influence.

• If I talk about practical Byzantine fault tolerance then it has reliance on working process in between validators for showing their agreement at order of transactions in quick wave so this is its influence.

• Proof of authority is selecting validators depending upon their reputation and authority they have so it gives them power to sequence transactions.

• Proof of elapsed time in selecting validators in random way depending upon waiting time they have because waiting time determines who is next to validate and sequence the transactions and this is its influence.

• If I talk about roof of burn then it is permitting validators to have right first to validate the transactions and to sequence them who have burnt many tokens of cryptocurrency so this is its influence.

I am explaining role of light nodes,full nodes and miners node.

Full Nodes

• Full nodes are useful in storing copy of entire block chain which includes all kind of transactions or kind of blocks and small contracts.

• Full nodes are responsible for validation and verification of transactions in independence day so in this way it gives more security and accuracy as well as integrity to block chain.

• Full nodes shows their participation in consensus process by the means of broadcasting and propagation of new transactions and blocks to other nodes.

• Full nodes show their contribution for decentralization and security of network by maintenance of copy of entire blockchain and by the process of verification of transactions.

Light Nodes

• Light nodes versions of full nodes but they are in lightweight and just like full notes they don't store entire blockchain.

• When I talk about their verification and validation of transactions then it all realise upon full nodes in this case for the reduction of storage and computational requirements.

• Light nodes in quick way synchronize with the blockchain and in this way they permit users to approach and interact with the network in a more efficient way.

• Light nodes our ideal for those connections which are of low man with because they consume less space of storage and network resources.

Miners nodes

• Miners nodes are responsible for validation and verification of transactions by solving complex mathematical equations and puzzles.

• Miners complete with each other for adding new blocks to blockchain because they wants to earn block rewards in this way.

• Miner nodes I responsible for maintenance of integrity and security of blockchain by ensuring consensus.

• Miners play most significant role in maintenance of decentralization of network by showing their participation in consensus mechanism.

• Miner nodes all responsible for contributing their computational power to the network so in this way network become more robust.

Decentralization and governance are playing their vital role in the Steem blockchain.

Decentralization in blockchain means distributing power and decision-making across a network instead of having a central authority in control.In terms of Steem blockchain decentralization ensures that there is no single entity is having control over the platform.In this case it would be helpful for maintaining transparency, preventing censorship, and fostering a more democratic environment and ecosystem.

Governance is defined as a system in place for making decisions and for management the blockchain. Steem's governance structure permit stakeholders to get involved in important matters by process of voting. This ensures that decisions are made in a collective way and are reflecting the wish of the community.

When I talk about Steem blockchain governance structure then it affects transaction sequencing. In Steem blockchain stakeholders have authority in determination of the order in which transactions are going to processed and proceed so it's acts as a prevention of any single entity which wants to manipulate the transaction sequence for personal profits. It adds an additional layer of fairness and security for Blockchain.

When I talk about blockchain or network security then STEEM decentralized governance structure is playing its significant role in it.Its true that decisions are still made collectively by stakeholders but it becomes harder and tough really for malicious actors if they want to compromise network.Now you can understand that there is distributed nature of governance ensures that no single entity can make unilateral decisions or decisions of their choice that can be detrimental for the overall security of the blockchain.

Practical example

Suppose that there is a proposal for implementation of a new feature at Steem blockchain, like suppose there is a suggestion of a voting system upgrade. The stakeholders who have hold Steem tokens, can vote openly for disapproval or approval of this proposal. If the majority of stakeholders vote in favor, the proposal would be considered approved and the new feature would in this way be implemented. This democratic process gives surety that decisions are made with the best interests of the community whatever they have in their minds.