SmallBlockchain

This project simulates the fundamental concepts of a blockchain, including transactions, Proof of Work, block mining, and wallet management. Below are the main components and functionalities:

Main Components

1. Create Wallets

   • Description: You can create wallets (digital wallets) that contain public and private keys. Each wallet has an initial balance that can be used to perform transactions.
   • Functionality: Generate wallets to manage and transfer digital coins.

2. Create Transactions

   • Description: You can generate transactions between wallets by specifying the amount of coins you want to transfer. The system will validate whether the sender has sufficient funds before processing the transaction.
   • Functionality: Perform transfers between wallets and validate balances.

3. Mine Blocks

   • Description: Once you have generated enough transactions (or periodically), you can mine a new block. This process includes the Proof of Work, where the system adjusts the nonce until it finds a hash that meets the difficulty criteria.
   • Functionality: Mine blocks with Proof of Work and nonce adjustments.

4. Verify Transactions

   • Description: Every time a block is mined, the transactions within that block are verified and processed. This includes updating the balances of the involved wallets.
   • Functionality: Verify and process transactions in the blocks.

5. Blockchain Validation

   • Description: The code allows you to verify the integrity of the blockchain, ensuring that the blocks are correctly connected and haven't been tampered with by checking the hashes of previous blocks.
   • Functionality: Validate the blockchain's integrity and structure.

6. Mining Rewards

   • Description: As in a real blockchain, the miner who validates a block receives a reward (in this case, 50 coins). This is implemented through a special transaction called coinbase.
   • Functionality: Implement mining rewards via coinbase transactions.

Documentation

The documentation used for this implementation is available at the following link and will be attached to this repository.

Code

The code was developed in Google Colab to be used on other devices. The link to the notebook is attached in this document.