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The Conundrum of Fast Blockchain Updates on a Local Area Network

In the world of cryptocurrency, blockchain technology allows for the secure and transparent storage of data on a decentralized network. However, when it comes to blockchain updates on a local area network (LAN), a common problem arises: why doesn’t the update process seem to be happening quickly? More specifically, what happens when two clients on the same LAN have a private IP address (“192.168.X.X”) and both access the entire Bitcoin blockchain?

Scenario:

Imagine two computers “A” (with a private IP address “192.168.X.X”) and “B” connected to the same local area network with private IPs. The router only forwards port 8333 to computer “A” and directs all other incoming traffic to computer “B”. Since both clients have the entire Bitcoin blockchain, they operate on top of a decentralized network that allows them to communicate with each other.

Challenge:

This is where things get interesting. When both computers try to update their local copies of the blockchain, there seems to be no obvious reason why this process shouldn’t happen quickly. After all, both clients have the entire Bitcoin blockchain, and the router forwards port 8333 to “A,” which presumably has a faster internet connection.

Solution:

To understand why this doesn’t happen, let’s dive into the details of how the Ethereum network updates its blockchain. Specifically:

Here’s where “B” comes into play:

Why is there no fast update process?

The reason why there is no fast update process on the LAN is due to the combined effects of:

In this scenario, although both computers have the entire Bitcoin blockchain, they do not have to wait for the others before updating their local copies due to the slow propagation of requests and responses across the Ethereum network.

Conclusion:

This phenomenon highlights an interesting aspect of decentralized systems: while individual nodes may appear to be operating independently, the collective efforts of multiple nodes on the network create complex interactions that can lead to unexpected consequences. In this case, the combination of network latency and the consensus algorithm creates a bottleneck that slows down updates beyond the LAN.

As the world of cryptocurrency continues to evolve, understanding these complexities is essential to creating more efficient and scalable systems.

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