Quote from: spaceshaker on July 13, 2010, 03:42:07 AM

My confusion revolves around the relationship between a block, a transaction and coins. Here are a statement of facts as I understand them:

Blocks form a chain.
Blocks form the backbone of the Proof-of-Work: a block must be "solved".
Blocks contain a header and a tree structure containing transactions.
The first transaction in a block is special. The person who solves the Proof-of-Work for the first transaction gets rewarded with the coin value of the block (currently 50 coins but decreases over time).
There is a finite number of blocks: 21,000,000
I assume there is only a single chain, starting at block B₀ and eventually ending at block B_{21,000,000 - 1}.

5. is incorrect.

There is a finite number of coins but an unlimited number of blocks.

6. is half right.

There is only a single chain, starting at block B₀