Return to Teddy Token simulation at ReactorLab.net
5 STEPS to building the blockchain:
On opening the simulation, only the "Genesis Block" is present in the blockchain field on the far right or far bottom of the page, depending on your screen size and orientation. The Genesis Block is block number 0, in which Catoshi created tokens and distributed them to 5 friends.
Create a transaction: Select To, From and enter an amount. Transactions show the addresses, not the names of the people to whom the address belongs. This makes transactions anonymous.
Verify the transaction: This step checks to make sure two different addresses have been entered and a nonzero amount that is less than or equal to the current balance of the From address has been entered. After verification, the transaction is added to a pool of pending transactions on the peer network.
Build block: This step checks to make sure you have entered at least two verified transactions, then creates a provisional block. Real blockchains have blocks with thousands of transactions in order to reduce the cost per transaction. Miners on the peer network collect pending transactions and form provisional blocks.
Mine block: This step performs computations in order to achieve consensus on which provisional block created by miners should be added to the blockchain next. Since a real peer network will have many miners, each of whom can build a provisional block, they must reach consensus on which block to add next. The block of the first successful miner is added to the blockchain and they receive a reward of new tokens created by the blockchain algorithm.
Add block to chain: This step adds the new block to the top of the blockchain and also updates the balances of all users in the blockchain header.