Blockchain Explained in 7 Python Functions

I believe for many individuals on the market, Blockchain is that this phenomenon, which is difficult to get your head round. I began watching movies and studying articles, however for me personally, it wasn’t till I wrote my very own easy Blockchain, that I actually understood what it’s and the potential purposes for it.

The best way I take into consideration blockchain is it’s an encrypted database that’s public. In the event you had been Amazon and also you wished to make use of the expertise to trace your inventory ranges, would utilizing Blockchain make sense? Most likely not, since your clients received’t wish to expend their sources verifying your blockchain, since they state on their web site, ‘Only one left!’, anyway.

I’ll depart you to consider future purposes. So with out additional ado, lets arrange our 7 features!

def hash_function(ok):
 """Hashes our transaction."""
 if sort(ok) just isn't str:
 ok = json.dumps(ok, sort_keys=True)

 return hashlib.sha256(ok).hexdigest()

On the coronary heart of the blockchain is the hashing operate. With out encryption, the blockchain can be simply manipulable and transactions will be capable of be fraudulently inserted.

def update_state(transaction, state):
 state = state.copy()

 for key in transaction:
 if key in state.keys():
 state[key] += transaction[key]
 state[key] = transaction[key]

 return state

The ‘state’ is the document of who owns need. For instance, I’ve 10 cash and I give 1 to Medium, then the state would be the worth of the dictionary beneath.

{‘transaction’: {‘Tom’: 9, ‘Medium’: 1}}

The necessary factor to notice is that overdrafts can’t exist. If there are solely 10 cash in existence, then I can’t give 11 cash to somebody. The beneath operate verifies that the transaction we try and make is certainly legitimate. Additionally, a transaction should steadiness. I can’t give 5 cash and have the recipient obtain four cash, since that may permit the destruction and creation of cash.

def valid_transaction(transaction, state):
 """A legitimate transaction should sum to 0."""
 if sum(transaction.values()) just isn't 0:
 return False

 for key in transaction.keys():
 if key in state.keys():
 account_balance = state[key]
 account_balance = 0

 if account_balance + transaction[key] < 0:
 return False

 return True

Now, we will make our block. The data from the earlier block is learn, and used to hyperlink it to the brand new block. This, too, is central to the concept of blockchain. Seemingly legitimate transactions might be tried to fraudulently be inserted into the blockchain, however decrypting all of the earlier blocks is computationally (almost) unattainable, which preserves the integrity of the blockchain.

def make_block(transactions, chain):
 """Make a block to enter the chain."""
 parent_hash = chain[-1]['hash']
 block_number = chain[-1]['contents']['block_number'] + 1

 block_contents = {
 'block_number': block_number,
 'parent_hash': parent_hash,
 'transaction_count': block_number + 1,
 'transaction': transactions

 return {'hash': hash_function(block_contents), 'contents': block_contents}

Under is a small helper operate to test the hash of the earlier block:

def check_block_hash(block):
 expected_hash = hash_function(block['contents'])

 if block['hash'] just isn't expected_hash:


As soon as we now have assembled every part collectively, its time to create our block. We’ll now replace the blockchain.

def check_block_validity(block, mother or father, state):
 parent_number = mother or father['contents']['block_number']
 parent_hash = mother or father['hash']
 block_number = block['contents']['block_number']

 for transaction in block['contents']['transaction']:
 if valid_transaction(transaction, state):
 state = update_state(transaction, state)

 check_block_hash(block) # Verify hash integrity

 if block_number just isn't parent_number + 1:

 if block['contents']['parent_hash'] just isn't parent_hash:

 return state

Earlier than we’re completed, the chain should be verified:

def check_chain(chain):
 """Verify the chain is legitimate."""
 if sort(chain) is str:
 chain = json.masses(chain)
 assert (sort(chain) == checklist)
 besides ValueError:
 # String handed in was not legitimate JSON
 return False
 elif sort(chain) just isn't checklist:
 return False

 state = {}

 for transaction in chain[0]['contents']['transaction']:
 state = update_state(transaction, state)

 mother or father = chain[0]

 for block in chain[1:]:
 state = check_block_validity(block, mother or father, state)
 mother or father = block

 return state

Lastly, want a transaction operate, which hangs the entire above collectively:

def add_transaction_to_chain(transaction, state, chain):
 if valid_transaction(transaction, state):
 state = update_state(transaction, state)
 increase Exception('Invalid transaction.')

 my_block = make_block(state, chain)

 for transaction in chain:

 return state, chain

So, now we now have our 7 features. How will we work together with it? Properly, first we have to begin our chain with a Genesis Block. That is the inception of our new coin (or inventory stock, and many others). For the needs of this text, I’ll say that I, Tom, will begin off with 10 cash.

genesis_block = {
 'hash': hash_function({
 'block_number': 0,
 'parent_hash': None,
 'transaction_count': 1,
 'transaction': [{'Tom': 10}]
 'contents': {
 'block_number': 0,
 'parent_hash': None,
 'transaction_count': 1,
 'transaction': [{'Tom': 10}]

block_chain = [genesis_block]
chain_state = {'Tom': 10}

Now, look what occurs once I give some coin to Medium:

chain_state, block_chain = add_transaction_to_chain(transaction={'Tom': -1, 'Medium': 1}, state=chain_state, chain=block_chain)

The state will get up to date to point out who has what:

{'Medium': 1, 'Tom': 9}

And the blockchain seems like this:

[{'contents': {'block_number': 0,
 'parent_hash': None,
 'transaction': [{'Tom': 10}],
 'transaction_count': 1},
 'hash': '064d0b480b3b92761f31831d30ae9f01954efaa62371b4b44f11465ec22abe93'},
 {'contents': {'block_number': 1,
 'parent_hash': '064d0b480b3b92761f31831d30ae9f01954efaa62371b4b44f11465ec22abe93',
 'transaction': {'Medium': 1, 'Tom': 9},
 'transaction_count': 2},
 'hash': 'b4ae25f0cc0ee0b0caa66b9a3473e9a108652d53b1dc22a40962fef5c8c0f08c'}]

Our first new transaction has been created and inserted to the highest of the stack. Now, I hope I’ve piqued your curiosity, and are taken with copying the code down and enjoying with it. In my view, that is one of the best ways to study a brand new expertise — Get inside it.

Play with the code and make your individual coin. What occurs in case you try to give extra cash than exist? What occurs to the state in case you hold creating new payees?

Are you able to consider future purposes for blockchain? Be at liberty to ask me something within the feedback, and I’ll try to assist.

Blockchain Explained in 7 Python Functions was initially revealed in Towards Data Science on Medium, the place persons are persevering with the dialog by highlighting and responding to this story.

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Written by Ravi Gupat

Ravi grew up in India and graduated in Economics. He is a serial entrepreneur who has founded and exited several companies in tech and media over the past 15 years. He is also an early stage investor and advisor in various blockchain-based companies.


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