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• Proof of authorization: The signature proves that the owner of the private key is the one who has authorized the transaction. • Non-repudiation: The proof of authorization is undeniable. • Immutability of transaction data: The data of the transaction is im- mutable. The structure of a transaction on the Ethereum network is the following. • Nonce: The number of transactions sent from a given address. • Gas Price: The price that initiator of the transaction is willing to pay for its execution. • Gas Limit: The maximum amount of Gas. • Recipient: The destination address that the transaction is calling. This can be a different payable address or a smart contract. • Value: The value in Ether associated with the transaction. • Data: Binary data payload. • v, r, s: Value of the signature of the transaction. 2.1.7 Forks A "fork" of a blockchain can happen naturally when a parent block has multiple children blocks. It can be observed when blocks are mined by different miners at almost the same time. This is usually easily resolved when one child becomes part of the blockchain. However, sometimes in order to change the specification of a blockchain, a fork with the new specifications has to be introduced. This can be done using a soft-fork or a hard-fork. A soft-fork introduces specifications which are backwards-compatible with the network, so nodes that have not updated their software can still process transactions as long as they follow the new rules. On the other hand, hard-forks bring changes by loosening the rules of the blockchain, so the newly mined blocks may not be verifiable by old nodes. If this creates a debate, the operating nodes may choose to follow a preferred implementation and two separate blockchains are created. 2.1.8 Proof-of-Stake An alternative approach to Proof-of-Work is Proof-of-Stake, which calculates the "stake" of a node in the network by the amount of cryptocurrency that they hold, instead of their computing power. Ethereum is planning a hard-fork to switch to Proof-of-Stake with the launch of Ethereum 2.0 because of its benefits in securing the network, while making it more efficient. 9PDF Image | NFT finance Leveraging Non-Fungible Tokens
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