Blockchain_1

Blockchain and DLT Research Group at UZH: Understanding the Principles and Functioning of Blockchains

• Law of proportionate growth: In socioeconomic systems, the growth of an agent is proportional to its size.
• Blockchains are a paradigm of complex socio-techno-economic systems, created to address the increasing centralization accelerated by digitalization.
• Trust in few entities introduces single-point of failure and access to identities, leading to centralization in the creation of money.
• Blockchains aim to create a decentralized, transparent yet anonymous, open monetary system where pre-existing trust among participants is not necessary.
• The functioning of these systems is based on algorithmic protocols and a set of economic incentives.
• Key principles behind blockchains include a distributed peer-to-peer network and a distributed append-only database for data storage.
• Transactions are verified in a decentralized manner through a public registry replicated in all nodes of the peer-to-peer network.
• Transactions are packed into blocks before verification to allow for simpler agreement («consensus») and introduce a natural order.
• Each block is created by someone and contains a set of verified transactions at the same time.
• The relationship between design principles and outcome received opposing views from anarcho-capitalist communities in the aftermath of the 2008 crisis.
• Blockchains were created to enable exchange of value of digital assets without trusted central entities and open participation in the process of money supply.
• The ideal behind blockchains is to eliminate the need for pre-existing trust among participants and allow trust to emerge because of the system's operation.

Blockchain and DLT Research Group at UZH: Understanding the Principles and Functioning of Blockchains

• Law of proportionate growth: In socioeconomic systems, the growth of an agent is proportional to its size.
• Blockchains are a paradigm of complex socio-techno-economic systems, created to address the increasing centralization accelerated by digitalization.
• Trust in few entities introduces single-point of failure and access to identities, leading to centralization in the creation of money.
• Blockchains aim to create a decentralized, transparent yet anonymous, open monetary system where pre-existing trust among participants is not necessary.
• The functioning of these systems is based on algorithmic protocols and a set of economic incentives.
• Key principles behind blockchains include a distributed peer-to-peer network and a distributed append-only database for data storage.
• Transactions are verified in a decentralized manner through a public registry replicated in all nodes of the peer-to-peer network.
• Transactions are packed into blocks before verification to allow for simpler agreement («consensus») and introduce a natural order.
• Each block is created by someone and contains a set of verified transactions at the same time.
• The relationship between design principles and outcome received opposing views from anarcho-capitalist communities in the aftermath of the 2008 crisis.
• Blockchains were created to enable exchange of value of digital assets without trusted central entities and open participation in the process of money supply.
• The ideal behind blockchains is to eliminate the need for pre-existing trust among participants and allow trust to emerge because of the system's operation.

Blockchain and DLT Research Group at UZH: Understanding the Principles and Functioning of Blockchains

• Law of proportionate growth: In socioeconomic systems, the growth of an agent is proportional to its size.
• Blockchains are a paradigm of complex socio-techno-economic systems, created to address the increasing centralization accelerated by digitalization.
• Trust in few entities introduces single-point of failure and access to identities, leading to centralization in the creation of money.
• Blockchains aim to create a decentralized, transparent yet anonymous, open monetary system where pre-existing trust among participants is not necessary.
• The functioning of these systems is based on algorithmic protocols and a set of economic incentives.
• Key principles behind blockchains include a distributed peer-to-peer network and a distributed append-only database for data storage.
• Transactions are verified in a decentralized manner through a public registry replicated in all nodes of the peer-to-peer network.
• Transactions are packed into blocks before verification to allow for simpler agreement («consensus») and introduce a natural order.
• Each block is created by someone and contains a set of verified transactions at the same time.
• The relationship between design principles and outcome received opposing views from anarcho-capitalist communities in the aftermath of the 2008 crisis.
• Blockchains were created to enable exchange of value of digital assets without trusted central entities and open participation in the process of money supply.
• The ideal behind blockchains is to eliminate the need for pre-existing trust among participants and allow trust to emerge because of the system's operation.

Test your knowledge of blockchain principles and functioning with this quiz. Explore key concepts such as distributed peer-to-peer networks, decentralized verification of transactions, and the elimination of the need for pre-existing trust among participants.