The code in this gist isn't as succinct as I'd like it to be. Please bare with me and ask plenty of questions that you may have about it.

snakecoin-server-full-code.py

from flask import Flask
from flask import request
import json
import requests
import hashlib as hasher
import datetime as date
node = Flask(__name__)

# Define what a Snakecoin block is
class Block:
  def __init__(self, index, timestamp, data, previous_hash):
    self.index = index
    self.timestamp = timestamp
    self.data = data
    self.previous_hash = previous_hash
    self.hash = self.hash_block()
  
  def hash_block(self):
    sha = hasher.sha256()
    sha.update(str(self.index) + str(self.timestamp) + str(self.data) + str(self.previous_hash))
    return sha.hexdigest()

# Generate genesis block
def create_genesis_block():
  # Manually construct a block with
  # index zero and arbitrary previous hash
  return Block(0, date.datetime.now(), {
    "proof-of-work": 9,
    "transactions": None
  }, "0")

# A completely random address of the owner of this node
miner_address = "q3nf394hjg-random-miner-address-34nf3i4nflkn3oi"
# This node's blockchain copy
blockchain = []
blockchain.append(create_genesis_block())
# Store the transactions that
# this node has in a list
this_nodes_transactions = []
# Store the url data of every
# other node in the network
# so that we can communicate
# with them
peer_nodes = []
# A variable to deciding if we're mining or not
mining = True

@node.route('/txion', methods=['POST'])
def transaction():
  # On each new POST request,
  # we extract the transaction data
  new_txion = request.get_json()
  # Then we add the transaction to our list
  this_nodes_transactions.append(new_txion)
  # Because the transaction was successfully
  # submitted, we log it to our console
  print "New transaction"
  print "FROM: {}".format(new_txion['from'].encode('ascii','replace'))
  print "TO: {}".format(new_txion['to'].encode('ascii','replace'))
  print "AMOUNT: {}\n".format(new_txion['amount'])
  # Then we let the client know it worked out
  return "Transaction submission successful\n"

@node.route('/blocks', methods=['GET'])
def get_blocks():
  chain_to_send = blockchain
  # Convert our blocks into dictionaries
  # so we can send them as json objects later
  for i in range(len(chain_to_send)):
    block = chain_to_send[i]
    block_index = str(block.index)
    block_timestamp = str(block.timestamp)
    block_data = str(block.data)
    block_hash = block.hash
    chain_to_send[i] = {
      "index": block_index,
      "timestamp": block_timestamp,
      "data": block_data,
      "hash": block_hash
    }
  chain_to_send = json.dumps(chain_to_send)
  return chain_to_send

def find_new_chains():
  # Get the blockchains of every
  # other node
  other_chains = []
  for node_url in peer_nodes:
    # Get their chains using a GET request
    block = requests.get(node_url + "/blocks").content
    # Convert the JSON object to a Python dictionary
    block = json.loads(block)
    # Add it to our list
    other_chains.append(block)
  return other_chains

def consensus():
  # Get the blocks from other nodes
  other_chains = find_new_chains()
  # If our chain isn't longest,
  # then we store the longest chain
  longest_chain = blockchain
  for chain in other_chains:
    if len(longest_chain) < len(chain):
      longest_chain = chain
  # If the longest chain isn't ours,
  # then we stop mining and set
  # our chain to the longest one
  blockchain = longest_chain

def proof_of_work(last_proof):
  # Create a variable that we will use to find
  # our next proof of work
  incrementor = last_proof + 1
  # Keep incrementing the incrementor until
  # it's equal to a number divisible by 9
  # and the proof of work of the previous
  # block in the chain
  while not (incrementor % 9 == 0 and incrementor % last_proof == 0):
    incrementor += 1
  # Once that number is found,
  # we can return it as a proof
  # of our work
  return incrementor

@node.route('/mine', methods = ['GET'])
def mine():
  # Get the last proof of work
  last_block = blockchain[len(blockchain) - 1]
  last_proof = last_block.data['proof-of-work']
  # Find the proof of work for
  # the current block being mined
  # Note: The program will hang here until a new
  #       proof of work is found
  proof = proof_of_work(last_proof)
  # Once we find a valid proof of work,
  # we know we can mine a block so 
  # we reward the miner by adding a transaction
  this_nodes_transactions.append(
    { "from": "network", "to": miner_address, "amount": 1 }
  )
  # Now we can gather the data needed
  # to create the new block
  new_block_data = {
    "proof-of-work": proof,
    "transactions": list(this_nodes_transactions)
  }
  new_block_index = last_block.index + 1
  new_block_timestamp = this_timestamp = date.datetime.now()
  last_block_hash = last_block.hash
  # Empty transaction list
  this_nodes_transactions[:] = []
  # Now create the
  # new block!
  mined_block = Block(
    new_block_index,
    new_block_timestamp,
    new_block_data,
    last_block_hash
  )
  blockchain.append(mined_block)
  # Let the client know we mined a block
  return json.dumps({
      "index": new_block_index,
      "timestamp": str(new_block_timestamp),
      "data": new_block_data,
      "hash": last_block_hash
  }) + "\n"

node.run()

This code doesn't broadcast transactions to all nodes as mentioned in the bitcoin whitepaper, so each block would only contain the transactions for the user and miner of that node, instead of combining transactions from multiple nodes. /transaction should have a GET method which would supply other nodes will all the transactions this node has, which would then be added to this_node_transactions.

To fix Internal Server Error aka "dict" object has no attribute "index", simply change chain_to_send = blockchain to chain_to_send = blockchain[:]. This will copy the blockchain array. So you wouldn't change the actual blockchain to JSON.

I keep getting this error when I'm using /txion

Ms-MacBook-Pro:mvb m$ curl localhost:5000/transaction

<title>405 Method Not Allowed</title>

Method Not Allowed

The method is not allowed for the requested URL.

What am I doing wrong ?

I have tried doing what DarkNTNT84 mentions, but it still won't work