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3daysblcourseockchainbigdata

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WELCOME

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BASIC
BLOCKCHAIN
TECHNOLOGY

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ABOUT THE TRAINER
Mr Kovalan Balamany who has been involved in Public speaking in various
organizations and trainer for ma...

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3daysblcourseockchainbigdata

  1. 1. WELCOME
  2. 2. BASIC BLOCKCHAIN TECHNOLOGY
  3. 3. ABOUT THE TRAINER Mr Kovalan Balamany who has been involved in Public speaking in various organizations and trainer for many multi level marketing and sales companies since 2009. He has 12 years of experience in public speaking ,training and development. Many years of experience and knowledge has allowed him to deliver a vast of creative learning programs. He is experienced and dynamic trainer with excellent communication, management, and team-building skills. He has the charismatic persona and ability to inspire and motivates any level of people. He is able to design and implement a variety of training programs for multiple purposes. He is adaptable and comfortable working in any industry and groups of all sizes. He has worked as a Business development Manager and Trainer with a Chinese based company on blockchain technology and cryptocurrency ,He has also has been a trainer and coach for Forex in 2018,he has facilitated trainings for more than 5000 traders from Malaysia, Singapore, Indonesia, Philippines, Oman and Dubai. Apart from that, he is appointed as an official trainer and motivator for AKS champions resources which deals with multi national corporation company, Coway health planners to ensure they meet their sales target and to achieve their goals in personal and professional development. In person , he is gifted in teaching and motivating people in areas such as sales, product knowledge, technology, and many more. Proven track record at improving job performance. He is Certified HRDF trainer for digital stem , and certified Digital Marketing Professional.
  4. 4. COURSE MODULES
  5. 5. 01 Blockchain Technology Fundamentals  Blockchain Basics (What is Blockchain?)  Benefits of Blockchain  How Blockchain works?  Hashing function  P2P distribution ledger  Validation & Mining  Proof of Work & Proof of Stack  Public and Private Blockchains  Smart Contracts
  6. 6. Applications of Blockchain 02  What is Cryptocurrency?  What is Bitcoin and how it works?  Ethereum Fundamentals  Wallets for Cryptocurrency  What is Ethereum and Dapp  Setup Ethereum wallet in Metamask
  7. 7. Challenges on Blockchain Technology • Challenges and Risk of Blockchain • Obstacles on Blockchain Adoption • Popular Blockchain Platforms 03
  8. 8. Blockchain Implementation & Innovations 05 Implementation in Big data
  9. 9. BLOCKCHAIN BASICS (WHAT IS BLOCKCHAIN?)
  10. 10. What is Blockchain? Blockchain is a type of database It differs from a typical database - stores information Blockchains store data in blocks that are then chained together Different information can be stored on a blockchain - most common as a ledger for transactions
  11. 11. Decentralized - so that no single person or group has control—rather, all users collectively retain control. Decentralized – immutable (data entered is irreversible) What is Blockchain?
  12. 12. Benefits Of Blockchain
  13. 13. How Blockchain Works? Nodes receive a reward for the proof of work Nodes validate the transaction A block that represents the transaction is created The block is sent to every node in the network. (A node is a computer connected to other computers which follows rules and shares information) A transaction is requested The block is added to the existing blockchain The transaction is completed
  14. 14. Hashing Function A hash function is a mathematical function that converts a numerical input value into another compressed numerical value. The input to the hash function is of arbitrary length but output is always of fixed length. Values returned by a hash function are called message digest or simply hash values.
  15. 15. P2P Distribution Ledger Participants in the network govern and agree by consensus on the updates to the records in the ledger A peer-to-peer (P2P) service is a decentralized platform Two individuals interact directly with each other, without intermediation by a third party The buyer and the seller transact directly with each other via the P2P service. A distributed ledger is a type of database that is shared, replicated, and synchronized among the members of a decentralized network
  16. 16. VALIDATION & MINING
  17. 17. A blockchain validator is someone who is responsible for verifying transactions on a blockchain. Once transactions are verified, they are added to the distributed ledger. Verifying that transactions are legal (not malicious, double spends etc) Mining is A peer-to-peer computer process Blockchain mining is used to secure and verify bitcoin transactions VALIDATION & MINING
  18. 18. CONSENSUS Two or more parties agree on the correct state of data on the system and synchronize the data on the blockchain. Means each copy of the shared ledger will have the exact same data. Consensus protocol makes sure that every new block that is added to the Blockchain is the one and only version of the truth that is agreed upon by all the nodes in the Blockchain Without consensus, deals and transactions fall apart and are not saved to the blockchain because they are never agreed upon. Layman’s term - consensus serves to help two or more parties that don’t trust each other to trust each other.
  19. 19. There are different consensus algorithms. Examples of enterprise blockchain consensus algorithms include: Proof of Work (aka mining) which requires network users to resolve a complex mathematical puzzle with the goal to validate a transaction and create a new block Proof of Stake (PoS) which selects the creator of the next block based on several stake related factors such wealth and age Proof of Elapsed Time which is a hybrid of a random lottery and first-come-first- serve basis Proof of Authority which requires sign-off by a majority of designated nodes for a block to be created CONSENSUS
  20. 20. Proof of Work & Proof of Stack Proof of Work requires ALL of its miners to attempt to solve a complex sum, with the winner determined by the person who has the most powerful/quantity of hardware devices. Proof of Stake model randomly chooses the winner based on the amount they have staked.
  21. 21. Data on a public blockchain are secure as it is not possible to modify or alter data once they have been validated on the blockchain A public blockchain is decentralized and does not have a single entity which controls the network Anyone can join the network and read, write, or participate within the blockchain A public blockchain is permissionless Public Blockchains Bitcoin and Ethereum are well-known examples of a public blockchain.
  22. 22. Private Blockchains In a private blockchain, only the entities participating in a transaction will have knowledge about it, whereas the others will not be able to access it There are one or more entities which control the network and this leads to reliance on third-parties to transact Private blockchains work based on access controls which restrict the people who can participate in the network A private blockchain is a permissioned blockchain Hyperledger Fabric of Linux Foundation is a perfect example of a private blockchain.
  23. 23. Public and Private Blockchains
  24. 24. SMART CONTRACTS
  25. 25. SMART CONTRACT
  26. 26. SMART CONTRACT Contracts, whether they are leases, mortgages, loans, or for services, have been around a long time But when something goes wrong and one party fails to perform their part of the contract, what happens? Then you have to go back and forth with them until they come around. And if they don’t? Then you have to call an attorney or a mediator to help persuade them At that point, you are looking at spending hours and thousands of dollars to get the other party to simply execute their half of the contract
  27. 27. SMART CONTRACT Smart contracts are kept on the blockchain and are executed automatically when a transaction is processed. Because data on the blockchain is immutable – cannot be changed or manipulated by anyone
  28. 28. SMART CONTRACT For example, if you are a landlord your tenants have leases The smart contract contains key data of both parties such as the name, contact information, bank account details as well as information about the lease itself including lease amount and payment date When a smart contract self-executes on the pre- defined lease payment date, it automatically withdraws funds from the tenant’s bank account and deposits the funds into your account This saves you the monthly rental statements in advance, of reminding the tenant to pay, and from hounding the tenant once the late date has passed, never mind eviction notices, court dates, and attorney’s fees.
  29. 29. ACTIVITY 1. What is Blockchain? 2. What are the most common information stored in Blockchain? 3. what is Decentralized Blockchain? 4. What are advantages of blockchain? 5. What is hash function? 6. How the P2P distribution ledger works? 7. What is mining? 8. How consensus helps in the Blockchain? 9. What are public and private Blockchains? 10.Discuss on how smart contracts helps an organization?
  30. 30. APPLICATIONS OF BLOCKCHAIN
  31. 31. WHAT IS CRYPTOCURRENCY? Cryptocurrency is decentralized digital money or virtual currency Based on blockchain technology and secured by cryptography which makes it nearly impossible to counterfeit or double-spend Example of Cryptocurrency…. 5,392 cryptocurrencies Total market capitalization of $2.23 Trillion
  32. 32. How safe is Cryptocurrency? As with buying and trading commodities and fiat currencies, purchasing a cryptocurrency—isn't free of risk Volatile price may make it riskier than stocks and other types of investments, but that volatility can potentially make it more profitable too WHAT IS CRYPTOCURRENCY?
  33. 33. You can use crypto to buy regular goods and services, although many people invest in cryptocurrencies as they would in other assets, like stocks or precious metals. Is Cryptocurrency a good investment? If you believe in blockchain technology, cryptocurrency is a great long-term investment. Bitcoin is seen as a store of value, and some people think Bitcoin can replace gold in the future WHAT IS CRYPTOCURRENCY?
  34. 34. WHAT IS CRYPTOCURRENCY? Ethereum, the 2nd largest cryptocurrency by market cap, also has huge growth potential as a long-term investment Every cryptocurrency has its own function and usability BITCOIN – P2P monetary exchange ETH – more to smart contract
  35. 35. WHERE TO INVEST? What crypto will explode in 2020? With all that in mind, I suggest readers keep a close eye on these seven (might be) explosive cryptocurrencies in the coming year: DxChain Token (DX) Bitcoin (BTC) Zcash (ZEC) Ripple (XEC) Basic Attention Token (BAT) Chainlink (LINK) Synthetix Network Token (SNX)
  36. 36. Released as open-source software Bitcoin is a decentralized digital currency Can buy, sell and exchange directly, without an intermediary like a bank Began use in 2009 Unknown person or group of people using the name Satoshi Nakamoto “An electronic payment system based on cryptographic proof instead of trust.” Bitcoin is a cryptocurrency invented in 2008 WHAT IS BITCOIN (BTC) AND HOW IT WORKS?
  37. 37. WHAT IS BITCOIN (BTC) AND HOW IT WORKS? Will Bitcoin die? However, it's possible the bitcoin network protocol will be changed between now and then. Bitcoin is not regulated as it is not considered to be electronic money according to the law. Bitcoins are still accepted by small businesses and merchants In actuality, the final bitcoin is unlikely to be mined until around the year 2140. While it warned the public of risks of bitcoins, and that they are not legal tender
  38. 38. ETHEREUM (ETH) FUNDAMENTALS Can buy, sell and exchange directly, without an intermediary like a bank Open-source, blockchain-based, decentralized software platform used for its own cryptocurrency, ether Enables SmartContracts and Distributed Applications (ĐApps) to be built and run without any downtime, fraud, control, or interference from a third party Vitalik Buterin is the founder of ETH Traded as a digital currency exchange like other cryptocurrencies Ethereum is a cryptocurrency invented in 2015
  39. 39. ETHEREUM (ETH) FUNDAMENTALS Latest long-term forecast, Ethereum price will hit $5,000 by the end of 2021 ** $10,000 by the middle of 2023. $20,000 within the year of 2025 $50,000 in 2032. What will Ethereum be worth in 2030? Ethereum enables the deployment of smart contracts and decentralized applications 1 Ethereum = $2630 (RM10,026) Ethereum to run applications and even to monetize work
  40. 40. WALLETS FOR CRYPTOCURRENCY A cryptocurrency wallet is an app that allows cryptocurrency users to store and retrieve their digital assets Wallets can hold multiple cryptocurrencies. Direct the sender to a unique cryptographic address issued by the wallet.
  41. 41. WALLETS FOR CRYPTOCURRENCY Automatically you will have a wallet when you open a cryptocurrency exchange account (exchange- hosted wallet) You do not have control of the private and public keys. In addition, participating in ICOs require you to have your own private wallets, from which to invest from.
  42. 42.  The Best Bitcoin Wallets of 2021  Best for Beginners: Exodus.  Best For More Advanced Users Interested in just Bitcoin: Electrum.  Best for Mobile Users: Mycelium.  Best Hardware Wallet: Ledger Nano X.  Best For a Large Number of Cryptocurrencies: Trezor Model T. WALLETS FOR CRYPTOCURRENCY
  43. 43. WALLETS FOR CRYPTOCURRENCY Web Wallets (Least secure, but usable) 5 Different Types Of Crypto Wallets Mobile Wallets (Easy access to your crypto assets) Desktop Wallets (Ease of use, but not very secure) Paper Wallets (Not very relevant anymore, but good to know info) Hardware Wallets (Recommended crypto wallet type)
  44. 44. Cold storage (or offline wallets) is one of the safest methods for holding bitcoin, as these wallets are not accessible via the Internet. Users can lose bitcoin and other cryptocurrency tokens as a result of theft, computer failure, loss of access keys, and more. WALLETS FOR CRYPTOCURRENCY
  45. 45. WALLETS FOR CRYPTOCURRENCY 10 Best bitcoin wallets with low transaction fees Armory - windows/macOS/linux/raspberry pi. Myceliumwallet - android/IOS. Wirex - android/IOS. Xapo - android/IOS. Blockchain - windows/macOS/android/IOS. Bitgo - windows/macOS/android/IOS. Greenaddress - android/IOS. Coinbase - windows/macOS/android/IOS. Currently, the Malaysian Security Commission has licensed three firms to run exchange platforms : Luno Malaysia Sdn Bhd, Sinegy Technologies (M) Sdn Bhd Tokenize Technology (M) Sdn Bhd.
  46. 46. WHAT IS ETHEREUM AND DAPP Decentralized Application (Dapp) A Dapp has its backend code running on a decentralized peer-to-peer network. Isolated, which means they are executed in a virtual environment known as Ethereum Virtual Machine. If the smart contract happens to have a bug, it won't hamper the normal functioning of the blockchain network Dapps have their backend code (smart contracts) running on a decentralized network and not a centralized server.
  47. 47. WHAT IS ETHEREUM AND DAPP Dapp Token (DAPPT) is a cryptocurrency token and operates on the Ethereum platform. Unlike a regular web app with built-in ads that are monitored by the company, a DApp runs on its own. Using the Ethereum blockchain for data storage and smart contracts for their app logic. That means users need to put some money into the system to keep it going. This money helps support the nodes that work to validate app transactions.
  48. 48. SETUP ETHEREUM WALLET IN METAMASK MetaMask is a cryptocurrency wallet but also a web browser extension (available in Chrome, Firefox and Brave) used to store, send and receive Ethereum and ERC20. In other words, it allows users to make Ethereum transactions through regular websites. MetaMask can be used to store keys for Ethereum cryptocurrencies only. It works like a bridge between normal browsers and the Ethereum blockchain MetaMask generates passwords and keys on your device, so only you have access to your accounts and data
  49. 49. ACTIVITY 1. What is cryptocurrency? 2. What makes cryptocurrency to nearly impossible to counterfeit and double spend? 3. Is cryptocurrency a good investment? 4. Which is the 2nd largest cryptocurrency by market cap? 5. What is bitcoin and its usage? 6. When Bitcoin introduced by Satoshi? 7. What is ETH stand for? 8. Who is the founder of ETH? 9. What is a cryptocurrency wallet? 10.What is public & private key in blockchain?
  50. 50. CHALLENGES ON BLOCKCHAIN TECHNOLOGY
  51. 51. CHALLENGES AND RISK OF BLOCKCHAIN Low Scalability - throughput, latency, bootstrap time, or cost per transactions High Energy Consumption – Mining consuming high energy Lack of Talent – Lack of expertise / developer in blockchain Lack of standardization – No proper standard outline / law
  52. 52. Future Scope – what's the scope for future Immaturity (still slow and cumbersome) - complexity and their encrypted & distributed nature Stand-alone projects – depends on 1 platform & solutions Difficult integration with legacy systems The Criminal Connection - $21.4 billion worth of transfers (2019) CHALLENGES AND RISK OF BLOCKCHAIN
  53. 53. Lack of Privacy - Once attributed to an individual lifetime of transactions will be permanently exposed as linked to that person. No Regulation – Risky environment Security Problems - Hackers Lack of awareness and understanding CHALLENGES AND RISK OF BLOCKCHAIN
  54. 54. OBSTACLES ON BLOCKCHAIN ADOPTION Blockchain will face different blockchain adoption challenges before it is integrated into society. Scalability, the time needed to verify transactions, the cost of transactions, and security. Hacking incidents in Bitcoin- based companies and startups
  55. 55. Inefficient Technological Design Lacks in many technological ways. A coding flaw or loophole is one of the significant points in this. Criminal Connection Nature of the network is decentralized so that no one can know your true identity. Black market and the dark web. Low Scalability Work fine with small number of users, when mass integration happens- having hard time –longer time to process Lack of Adequate Skill Sets Less qualified personnel to manage blockchain technology. Public Perception Lack of knowledgebase, still not aware of the existence and potential use of this technology, lack of proper marketing for this niche is making it unpopular OBSTACLES ON BLOCKCHAIN ADOPTION
  56. 56. POPULAR BLOCKCHAIN PLATFORMS Blockchain platforms allow the development of blockchain-based applications. They can either be permissioned or permissionless. Ethereum, Hyperledger, R3, Ripple, and EOS are a few names that have built blockchain frameworks, allowing people to develop and host applications on the blockchain. Top Blockchain Platforms to Explore in 2020 •IBM Blockchain. Visionary companies across the globe are using IBM's popular and exciting blockchain platform, which offers more transparent environments for company operations. •Ethereum - SmartContracts and Distributed Applications (ĐApps) •Ripple – financial- faster, low cost global payments •Corda – business - transact directly and in strict privacy with one another •OpenLedger – business - blockchain services and custom blockchain development that power real business transformations •EOS - The smart contract platform claims to eliminate transaction fees and also conduct millions of transactions per second. •Hyperledger Sawtooth -as-a-service platform that can run customized smart contracts without needing to know the underlying design of the core system •OpenChain- suited for organizations wishing to issue and manage digital assets in a robust, secure and scalable way
  57. 57. ACTIVITY 1. What are the main challenges of blockchain? 2. How to overcome these challenges as per your perspective? 3. Why mining consuming high energy? 4. What are the steps can we do for lack of expertise in blockchain technology? 5. What shall a government do for awareness or understandings of blockchain? 6. Name 3 obstacles on blockchain adoption. 7. Name 5 popular blockchain platforms 8. Discuss on future scope that Blockchain technology can contribute to an organization / country. 9. How to prevent Blockchain technology from criminal connections? 10. Name 3 popular Blockchain platforms in 2020.
  58. 58. BLOCKCHAIN IMPLEMENTATIONS & INNOVATIONS
  59. 59. OVERVIEW OF BLOCKCHAIN INNOVATIONS Property Public (BTC/ETH) Private (HYPERLEDGER ) Federated (RIPPLE) Consensus • Costly PoW • Light PoW • Light PoW Mechanism • All miners • Centralised organisation • Leader node set Identity • (Pseudo) Anonymous • Identified users • Identified users Anonymity • Malicious? • Trusted • Trusted Protocol Efficiency & • Low efficiency • High efficiency • High efficiency Consumption • High energy • Low energy • Low energy Immutability • Almost impossible • Collusion attacks • Collusion attacks Ownership & • Public • Centralised • Semi-Centralised Management • Permissionless • Permissioned whitelist • Permissioned nodes Transaction Approval • Order of minutes • Order of milliseconds • Order of milliseconds The blockchain technology solves the double-spend problem with the help of public-key cryptography, whereby each user is assigned a private key and a public key is shared with all other users. Existing research on blockchain has been mainly focused on system efficiency, security and innovative applications Classification and main characteristics of blockchain networks.
  60. 60. BLOCKCHAIN IMPLEMENTATION STRATEGY Understand What Blockchain Is  Understand the blockchain ecosystem  How to implement the system in your business? Develop A Business Case Organisations can use to see if the problem they are trying to address could be solved by blockchain:  Do multiple parties share data?  Do multiple parties update data?  Is there a requirement for verification?  Do intermediaries add complexity?  Are interactions time sensitive?  Do transactions interact? If you answer yes to four out of six of these criteria, then it shows blockchain could be a good idea,” Choose Your Blockchain Carefully  Understanding the core benefits  Don’t fall victim to the hype  Permissioned network? Decentralised or centralised?  Different chains perform different functions.”
  61. 61. Build An Ecosystem  The rules for participation.  How to ensure that costs and benefits are fairly shared.  What risks and control framework can be used to address the shared architecture.  What governance mechanisms are in place, including continuous auditing and validation, to ensure that the blockchain functions as designed. Design Deliberately  Blockchain has to be designed carefully, not just to solve the organizational issues, but to ensure it fits with existing processes.  Working with not just the tech team but also operations and management, and pick apart the problems and pain points and build a solution around that  Privacy implications, cybersecurity, compliance, and how they work alongside a blockchain Navigate Uncertainty  Blockchain still new, regulations very limited; monitor the changing regulatory framework  blockchain differ from country to country BLOCKCHAIN IMPLEMENTATION STRATEGY
  62. 62. BLOCKCHAIN IMPLEMENTATION ON BIG DATA
  63. 63. Using blockchain adds another data layer to the Big Data analytics process Blockchain-generated Big Data is secure, as it cannot be forged due to the network architecture Blockchain-based Big Data is valuable, meaning it is structured, abundant and complete, making it a perfect source for further analysis Other technologies and computational/mathematical techniques that are used in blockchains include digital signatures, distributed (peer-to-peer) networks, and encryption/cryptography methods, among others linking the records (blocks) of the ledger BLOCKCHAIN IMPLEMENTATION ON BIG DATA
  64. 64. What is the difference between Blockchain and Big Data? Blockchain ensures data storage and privacy to increase the data integrity, whereas the big data deals with data ensuring the data quantity, velocity, and variety to deliver better predictions. “Data Science for prediction ; Blockchain for data integrity” Big data is quantity ; Blockchain is quality The combination of these technologies is unbeatable. BLOCKCHAIN IMPLEMENTATION ON BIG DATA
  65. 65. BLOCKCHAIN IMPLEMENTATION ON BIG DATA 2017 Survey with 16,000 data professionals  Biggest challenge of data science - Dirty data (duplicate or incorrect data)  Blockchain solution gives almost impossible to manipulate the data - (huge amount of computing power required through decentralized consensus algorithm & cryptography makes data security and privacy.)  Cyber attackers – data stored in centralized servers – real threat  Blockchain focus on validating data - Big data focus on making predictions from large amount of data.  Blockchain integrates with other advanced solution like cloud solutions, Artificial Intelligence (AI) & Internet of things (IOT)
  66. 66. BLOCKCHAIN IMPLEMENTATION ON BIG DATA ENSURING TRUST (DATA INTEGRITY)  Last year LENOVO conduct a case study to detect fraudulent documents and forms.  Blockchain technology used to validate physical documents which encoded with digital signatures.  Digital signatures processed by computers  Authenticity of the documents recorded in blockchain. PREVENTING MALICIOUS ACTIVITIES  Single person can’t pose a threat to the data network as blockchain uses consensus algorithm to verify transactions.  A node (a unit) that works abnormally can easily identified and wipeout from the network.
  67. 67. BLOCKCHAIN IMPLEMENTATION ON BIG DATA MAKING PREDICTIONS (PREDICTIVE ANALYSIS)  Blockchain data same like other data, can be analyzed to predict the outcomes as its behaviors & trends.  Furthermore, Blockchain provides structured data from individuals and individual devices.  Data scientists easily can extract data on a blockchain network as its cloud based service and connected to several thousand computers. Otherwise collecting data is a tough job. REAL TIME DATA ANALYSIS  Blockchain exhibited real time transactions across the borders in financial and payment system.  In the same manner, some organizations requires real time data analysis which can be done through blockchain technology.  Real time data make an organization to act fast on decisions, whether it’s to block a suspicious transaction or to track abnormal activities.
  68. 68. BLOCKCHAIN IMPLEMENTATION ON BIG DATA MANAGE DATA SHARING  Whatever data gotten from studies, can be stored in blockchain.  Project teams no need to repeat the same data analysis carried out by other teams or wrongfully reuse data that already been used.  Can be monetize their work, probably by trading analysis outcomes stored on a blockchain by an organization.
  69. 69. Example of Blockchain in Big Data
  70. 70. ACTIVITY 1. Choose an industry to implement the innovation of blockchain technology 3. Identify which blockchain platform to use 2. Develop a business case base on your studies 4. Identify what are the pro and cons by using blockchain technology in that industry
  71. 71. THANK YOU

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