Blockchain Technology

Agenda What is Blockchain & Bitcoin? Blockchain Technologies Peer To Peer Networks & Cryptography Blockchain Applications & Use Cases Proof Of Work & Blockchain Program Ethereum & Smart Contracts Copyright © 2017, edureka and/or its affiliates. All rights reserved.

What is Blockchain & Bitcoin? 01 Blockchain Technology is the latest buzz in the industry today 02 Blockchain is the implementation of the digital cryptocurrency Bitcoin ’0 ’08 8 03 Blockchain came into existence with the introduction of Bitcoin's whitepaper in October 2008 31 04 Blockchain is a continuously growing list of records called blocks linked and secured using cryptography Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

Bitcoin’s Blockchain Currently, about 1200 transactions are added to every block For every block that is added, the miner gets 12.5 BTC as reward A new block is added every 10 minutes Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

Peer to Peer Network Every single person on the network has a copy of the ledger There is no single centralized original copy Account Number Balance 19K4ejhJW94U0212… 37 1ZOL9470uier2UMb… 42.67 178errbZ81FePNr30… 1342 1Mr3UNPH8H4U24v… 12.005 1Pos4r9Eesbv8754b… 563 1JoH83jfos03n2490i… 974.65 … … Ledger Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

Hash Encryption Hello World A591a6d40bf420404a011733cf… Hello World! 7f83b1657ff1fc53b92dc18148a… Hash Function hello world! 7509e5bda0c762d2bac7f90d75… All data stored in Blockchain is encrypted using Hash Functions Bitcoin uses SHA256(SHA256(Block_Header)) Unlike encryption algorithms, Hash functions cannot be decrypted Highly secure as minute input changes give completely different output Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

Proof Of Work Hash (n-1) Hash (n) Hash (n+1) Block Data Block Data Block Data Proof Of Work involves solving a computationally expensive puzzle to add blocks to the Blockchain Nonce Nonce Nonce Block n Block n+1 Block n+2 Miners search for a specific nonce which gives the desired hash which is predetermined Bitcoin has miners who validate have to solve a complex mathematical puzzle to add a block to the blockchain Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

Blockchain Program Blockchains can be used to perform multiple programs Blockchain Program is used to create and implement rules in the Blockchain An example of a program is to store ID cards of all citizens for authentication during elections Different blockchains can have different programs in them Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

Blockchain Program We can create conditions as to when a transfer has to happen E.g. Transfer money to school on 1stof every month Blockchain Program is used to create and implement rules in the Blockchain Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

Ethereum Currency Issuance Ethereum is an open-source & public blockchain based distributed computing platform Decentralized Autonomous Organizations (DAO) Smart Contracts Smart Property Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

Ethereum Ethereum also provides a cryptocurrency token called "ether" Smart Contracts are the basic building blocks of Ethereum Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

Smart Contracts Used to create rules in the Blockchain program Written in Solidity language for most Blockchains pragma solidity ^0.4.0; contract Simple { function taker(uint _a, uint _b){ // Do something with a and b } } A sample smart contract Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

Where is Blockchain being used? BitcoinStore Online marketplace that sells a variety of electronic gadgets Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

Where is Blockchain being used? Coingig Online marketplace that conducts its transactions solely in Bitcoins where you can find everything from books to T-shirts Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

Where is Blockchain being used? The Swiss Pharmacy Provides high-quality medicine and accepts Bitcoins and ships worldwide Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

Where is Blockchain being used? All Things Luxury Carries a large selection of jewellery, including rings, necklaces, bracelets, earrings and cuff links Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

Where is Blockchain being used? Virgin Galactic Richard Branson’s Virgin Galactic venture began accepting Bitcoins as payment for their suborbital space flights Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

Where is Blockchain being used? Cheap Air CheapAir intends to eventually allow you to book hotels and flights using Bitcoin via their app Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

5 Industries Blockchain Will Disrupt Financial Services NASDAQ will soon run Blockchain trading In September 2016, Barclays carried out the world’s first trade transaction using blockchain Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

5 Industries Blockchain Will Disrupt Followmyvote is world’s first open- source online voting solution based on blockchain Voting Estonia, a small Baltic nation is the first to implement Blockchain based E- Voting System Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

5 Industries Blockchain Will Disrupt Real Estate Using Ubitquity, anyone can manage, track, and transfer land titles and property deeds Solves issues of huge paperwork and high agent fees Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

5 Industries Blockchain Will Disrupt Music Streaming Mycelia is a Blockchain based platform for artists to sell their work directly to customers Artists lose up to 86% of the proceeds from their music because of illegal downloading Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

5 Industries Blockchain Will Disrupt Supply Chain Management Provenance facilitates “transparent and traceable” trade on the Blockchain Middlemen in supply chains take time, add costs, and make mistakes often Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

Session In A Minute What is Blockchain & Bitcoin? Blockchain Technologies Networks & Cryptography Proof Of Work & Programs Blockchain Applications Ethereum & Smart Contracts Blockchain Technology Copyright © 2017, edureka and/or its affiliates. All rights reserved.

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