Presents basics and essentials points in Blockchain

1. Introduction To Blockchain
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2. • Centralized vs Decentralized?
• What is Blockchain?
• Types of blockchain?
• Bitcoin?
• Different Blockchains?
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Topics

3. Why Blockchain needed ?
Disadvantages of Centralized
system
• Node Failure
• Remote control
• Central management
Advantages of distributed system
• No single point failure
• Hard to hack
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4. Blockchain : Solution to problems
A blockchain, originally block chain, is a growing list of
records, called blocks, which are linked using cryptography.
Each block contains a cryptographic hash of the previous
block, a timestamp, and transaction data. By design, a
blockchain is resistant to modification of the data
In a simple words – it is a Distributed ledger
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5. How Blockchain works?
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6. Properties of blockchain
Fault tolerance
Durability and
attack resistance
Immutability
Transparency
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7. Types of Blockchain Architecture: Public vs
Permissioned(Private) Blockchain
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• The public blockchain network is
completely open and anyone can join
and participate in the network. The
network typically has an incentivizing
mechanism to encourage more
participants to join the network. Bitcoin
is one of the largest public blockchain
networks in production today.
• e.g – bitcoin, ethereum, litecoin
• Public blockchains are not suitable
for the business (as of now) as every
transaction is visible to every other node
in the network wherein private we can
control it so most of
the businesses need the private
blockchains.
• e.g Multichain, Hyperledger fabric, Corda

8. Bitcoin
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• Bitcoin is a digital currency which
can be transferred without any
intermediary to an acceptor regardless
of the geographical location.
• Bitcoin is the first borderless transnational
open system of access for financial payments
• In simple words – It is a digital money

9. Why bitcoin is different?
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Decentralization: It is the most important property of bitcoin. Bitcoin is not controlled by a
single authority. It is run by an open network of dedicated computers around the world.
Limited Supply: Bitcoin has a limited supply of 21million.
Pseudonymity: In normal fiat currencies who is making a transaction can be tracked but in
bitcoin transaction identity is pseudo-anonymous as it can be tracked by an address of your
wallet.
Divisibility: The smallest unit of a bitcoin is called a satoshi. It is one hundred millionth of a
bitcoin (0.00000001) – at today’s prices, about one-hundredth of a cent. This could enable
microtransactions that traditional electronic money cannot. Bitcoin uses the tonal number
system. The following figure shows you the different units of the bitcoin.

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11. How bitcoin works?
• Miners
• Consensus
• Hashing algorithm
SHA-256
Input : Ajinkya
Output: 4D8F7FBC3C15FF5EA62D4371A4AC31BA194D53CC5795FFDC731D00ACC5826483
Input : ajinkya
Output: 3E3AA2502D33C8108D75662D7C79A7BC6307149E899515D3D71E6DC82EF5AEBB
• Digital Signature
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12. Blockchain structure
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https://www.blockchain.com/btc/block/000000000000000000163fb70bc00f5bcd1111f56
e4e6b573bcaeb43063c0e65

13. How bitcoin works?
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Bitcoin works on the consensus algorithm name as Proof of work where miners validate
the transactions by finding the solution of a cryptographic puzzle. The solution is then
broadcasted to every other node in the network by the node who found it and then
it gets verified by the peer nodes and the block (block contains no of
transactions) gets added in the blockchain. Once the block gets added in the blockchain
then it becomes immutable means the transactions recorded in the block once cannot be
changed by anyone and thus prevents the double spending.

14. How bitcoin works?
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15. Ethereum Blockchain
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• Turing complete
• Smart contracts - Smart contracts are self-executing contracts with the terms of the
agreement between buyer and seller being directly written into lines of code. The code
and the agreements contained therein exist across a distributed,
decentralized blockchain network. Smart contracts permit trusted transactions and
agreements to be carried out among disparate, anonymous parties without the need
for a central authority, legal system, or external enforcement mechanism. They render
transactions traceable, transparent, and irreversible.
• In simple words : It is a contract written in code

16. Resources
Smart Contract Language
• Solidity
• Bamboo
IDEs & Editor Plugins
• Remix IDE
• Eth Fiddle
Test Blockchains
• Ganache
• Local Ethereum Network
JavaScript APIs For Communicating With Ethereum
• Web3.js
• Eth.js
Storage
• IPFS
• Swarm AJINKYA PANDE

17. Resources
• CoinTelegraph
• CoinDesk
• Bitcoin Magazine
• Bitcoin Wiki
• Khan Academy
• Let's Talk Bitcoin
News
Learning
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18. Hyperledger Technologies
Hyperledger is an
umbrella project of
open source
blockchains and related
tools, started in
December 2015 by the
Linux Foundation, to
support the
collaborative
development of
blockchain-based
distributed ledgers

19. Use cases of blockchain
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• EHR
• Land Registry
• Supply chain
• Blood Bank (My Idea)

20. Limitations of blockchain
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• Complexity
• Network size
• Forks
• Contracts cannot be modified
• TPS
• Transaction fees
• POW – wastage of energy

21. Any Questions???
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22. Thank You for Listening 
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