Ranjithkumar December 12, 2023 2

State Transition Function: The Engine of Bitcoin and Ethereum

Both Bitcoin and Ethereum are built on the concept of blockchain, which is essentially a public ledger of all transactions that have ever occurred on the network. This ledger is maintained by a distributed network of nodes, each of which has a copy of the entire history of the blockchain. In the context of blockchain, a state transition function is the engine that drives the entire system. It acts as the central mechanism responsible for transforming the current state of the blockchain (the global state) into a new state after a valid transaction is processed. This function essentially defines the…