Notes

Blockchain architecture
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The various elements of the bitcoin blockchain are stored in a peer-to-peer network of bitcoin clients (users with bitcoin software installed on their computers) that can directly communicate with other bitcoin clients on the network.: 220  This architecture is decentralized, as there is no central server in charge of storing or indexing the blockchain. As a distributed database, the blockchain grows naturally as transactions occur, without requiring human intervention. As a result, the blockchain grows much more quickly than the early Bitcoin white paper anticipated and it has become difficult to keep up with it.: 219  This functionality is provided by the bitcoin protocol reference client.

Blockchain by record
Litecoin, Dash and most other cryptocurrencies use a similar blockchain structure. In such a structure, blocks are chained by cryptographic hash to the previous block and represent a group of transaction data. The structure does not require a centralized authority. Instead, miners are employed to maintain the Blockchain; in the process, they are rewarded with new coins by adding these blocks to the chain of blocks using their private key. Anyone can request and receive updated information about the chain of blocks by downloading a copy of the whole chain of blocks from a peer or simply by generating the hash of the prior block using their private key.: 223 

A transaction record is published to the blockchain as a new block added to the chain. Data values for the transaction are encoded into the data structure of the block. It is important to note that the position of data (and thus, the transaction) within the block is determined by cryptographic hashing, rather than by a specific index.

By convention, if the transaction is “to-a-self” (broadcast to and acknowledged by the owner) it is added after the associated coin transfer, although this is not enforced by the protocol. Additionally, if the transaction is a payment (typically of another cryptocurrency) it is added after the coin transfer.

In case of double spending, i.e., a transaction that tries to spend a coin that has already been spent, the blockchain software comes to consensus that the earlier transaction must be reversed. This is achieved by exploiting the fact that bitcoin uses cryptographic hashing, rather than sequential numbering, as a way of indexing transactions within the blockchain. Every time a bitcoin client receives a new block, it computes the hash of the block's header (which identifies the transactions), and searches the block for a transaction that matches the
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