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This step focuses on what happens once a node receives transaction data and how to ensure that only valid transaction data and blocks are added to the blockchain-data-structure.
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Nakamoto, Satoshi. Bitcoin: A peer-to-peer electronic cash system. 2008. https://bitcoin.org/bitcoin.pdf .
Blocks that are identified as invalid later on are actually not physically removed from the blockchain-data-structure. Instead, they are marked as invalid and treated as if they had been removed. As a result, all changes are retained as documented.
- Verifying and Adding Transactions
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- Step 18