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DLT Concepts

This README introduces the main technical concepts to understand Distributed Ledger Technologies, the umbrella term for emerging Blockchain and Direct Acyclic Graph (DAG) technologies.

Core "unique" concepts

Proof of Work

Why: For security and enabling "correct" consensus
What: The resulting hash that "proofs" that a certain amount of computational power has been invested

pow

More detailed explanations: Wikipedia bitcoin-wiki

One of the best ways to really understand it - implement one yourself:

Recommendation: First try to implement it from scratch, then look at an example in a different language from your implementation and redo it.

Consensus

Why: Required for decentralization
What: A dynamic way of reaching agreement in a group

Why is achieving consensus so difficult?
-> Starting point: Two generals problem

Amazing E-Mail from Satoshi in 2008 explaining how consensus & proof of work play together:
Email: Proof of Work to solve consensus in the Byzantine Generals Problem

Short explanation with visuals

Consensus in Blockchain Systems in short (Medium Article)

Great links to deepen the understanding of Consensus Systems:

Consensus in Blockchain Systems (David Terry, Video)

Consensus Systems with Ethan Buchman (Podcast)

Basic underlying concepts

Public-key / private-key (asymmetric cryptography)

Hashing function

Merkle Tree

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Main concepts to understand Distributed Ledger Technology

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