Blockchain and DeFi Overview (2021) Blockchain Technologies, Smart Contracts, Decentralized Finance (DeFi) Blockchain: Decentralized Network, No Owner, Append Only Ledger, Secured by Cryptography, Chain of Blocks Consensus Algorithms: PoW, PoS, DPoS, PoA, PoH, Avalanche, … Proof of Work: Miners Compete with Hardware Proof of Stake: Stakers Compete with Assets Bitcoin: The First Blockchain, The First Cryptocurrency Cryptocurrencies: Digital Money, with No Central Bank Cryptocurrencies: Bitcoin, Ethereum, Cardano, Polkadot Market Capitalization: 2.3T USD (Sep 2021) Crypto Wallets: Keep Assets, Sign Transactions, Hardware Wallets Crypto Exchanges: Buy / Sell Crypto and Fiat Money Ethereum: Smart Contracts, Unstoppable Apps in the Blockchain Solidity: Smart Contract Language ERC20 Tokens: Blockchain Crypto Assets, Transferrable, Tradeable NFTs: Non-Fungible Crypto Tokens DAO: Decentralized Autonomous Organizations DeFi: Decentralized Finance, Financial Products on the Blockchain DeFi Examples: DEX, Lending, Stable Coins, Derivatives DEX: Uniswap, Bancor, PancakeSwap, SushiSwap, 1inch Stable Coins: USDT, USDC, DAI, BUSD, FRAX, … Lend & Borrow: AAVE, Maker, Compound, … Derivatives: Synthetix, Nexus Mutual, dYdX Liquidity Pools: Funds Locked in a Smart Contract, Earn Share of the Collected Fees Total Value Locked: 100B USD (Sept 2021) Yield Farming: Investing in Liquidity Pools The Future: Finance --> DeFi

1. Blockchain Technologies, Smart
Contracts, Decentralized Finance (DeFi)
Blockchain and DeFi
Svetlin Nakov, PhD
Co-founder, Innovation and
Inspiration Manager @ SoftUni
https://nakov.com
Software University (SoftUni) – http://softuni.bg

2. Blockchain
Decentralized
Network

3. Blockchain
No Owner

4. Blockchain
Append
Only Ledger

5. Blockchain
Secured by
Cryptography

6. Chain of Blocks
timestamp block_hash
all_transactions_hash
transaction #1 hash
transaction #2 hash
transaction #3 hash
…
Block #0 (genesis block)
prev_hash nonce
timestamp block_hash
all_transactions_hash
transaction #1 hash
transaction #2 hash
transaction #3 hash
…
Block #1
nonce
prev_hash
timestamp block_hash
all_transactions_hash
transaction #1 hash
transaction #2 hash
transaction #3 hash
…
Block #2
prev_hash nonce

8. Consensus Algorithms
PoW, PoS, DPoS, PoA,
PoH, Avalanche, …

9. Proof of Work
Miners Compete
with Hardware

10. Proof of Stake
Stakers Compete
with Assets

11. Bitcoin
The First
Blockchain

12. Bitcoin
The First
Cryptocurrency

13. Cryptocurrencies
Digital Money
No Central Bank

14. Cryptocurrencies
Bitcoin, Ethereum,
Cardano, Polkadot

15. Market Capitalization
2.3T USD
(Sep 2021)

16. 16

17. 17

18. Crypto Wallets
Keep Assets, Sign
Transactions

19. 19

20. Hardware Wallets

21. Crypto Exchanges
Buy / Sell Crypto
and Fiat Money

22. Crypto Exchanges

23. Ethereum
Smart
Contracts

24. 24

25. Smart Contract
Unstoppable App
in the Blockchain

26. Solidity
Smart Contract
Language

27. 27

28. ERC20 Tokens
Blockchain
Crypto Assets

29. ERC20 Tokens
Transferrable,
Tradeable

30. DAO
Decentralized
Autonomous
Organizations

31. DeFi
Decentralized
Finance

32. DeFi
Financial Products
on the Blockchain

33. DeFi Examples
DEX, Lending,
Stable Coins,
Derivatives

34. DEX
Uniswap, Bancor,
PancakeSwap,
SushiSwap, 1inch

35. 35

36. Stable Coins
USDT, USDC, DAI,
BUSD, FRAX, …

37. Lend & Borrow
AAVE, Maker,
Compound, …

38. 38

39. Derivatives
Synthetix, Nexus
Mutual, dYdX

40. Liquidity Pools
Funds Locked in
a Smart Contract

41. Liquidity Pools
Earn Share of the
Collected Fees

42. Total Value Locked
100B USD
(Sept 2021)

43. 43

44. Yield Farming
Investing in
Liquidity Pools

45. The Future
Finance  DeFi

46. Starting Your First IT Job