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Blockchain Technology And Cryptocurrency

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A brief presenation about blockchain and understand cryptocurrency. Find out what it is and why you need to know about it. How you can get involved and how it may change the world as we know it.

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Blockchain Technology And Cryptocurrency

  1. 1. Eno Bassey Presentation By: Understanding Blockchain Technology And CryptoCurrency Ebuka Umeh
  2. 2. @ennytwit - Senior Consultant @ Andela - Php, C#, Python, Ruby & Solidity - Drama Director - Anime Lover - BasketBaller - Football Analyst
  3. 3. @obitojs - Senior Developer @ Andela - Javascript, Solidity - Loves Coding - Watching Sitcom
  4. 4. Contents Background: Internet & Financing What is BlockChain Technology What is a Node, Block, Hashing & Transaction Demo of Hashing What is Mining How Transactions are Validated History of the BlockChain Types of BlockChain What is CryptoCurrency? Coins, Tokens & Altcoins: What is the difference Top CryptoCurrencies BlockChain Applications Globally Ethereum - What is Ethereum Origin of Ethereum Components within Ethereum Smart Contracts What makes it better Concerns & Issues of BlockChain Why should I Care? Can I start a blockchain or own a cryptocurrency ? Questions?
  5. 5. Background: 
 Internet & Financing
  6. 6. What is the internet? The Internet is the global system of interconnected computer networks that use the Internet protocol suite (TCP/IP) to link devices worldwide. It is a network of networks that consists of private, public, academic, business, and government networks of local to global scope, linked by a broad array of electronic, wireless, and optical networking technologies What is its use? Basically Limitless. Almost all innovative technology right now depends on it - definition by wikipedia
  7. 7. Banking and Financing Banking is an industry that handles cash, credit, and other financial transactions. These transactions are usually stored in ledgers.
 
 A bank ledger is a running list of transactions to and from a bank account. 
 
 It contains columns for the date, description, amount and leftover balance. Your bank provides a ledger for you to read online or on your monthly printed statement. Finally, A Bank Is A Single Source Of Truth For Your Financial Transactions
  8. 8. What is Blockchain Technology ?
  9. 9. Blockchain is the digital and de-centralized ledger technology that records all transactions without the need for a financial intermediary like a bank. The concept is a system that is decentralised and networked via nodes Decentralized Nodes
  10. 10. Blockchains are eliminating the requirement of trust among individuals for simple transactions involving accounts, balances or ownership of propertiesTransactions
  11. 11. How does the BlockChain work? 1.Transaction Initiated 2.Transaction is broadcasted over the P2P Network encrypted. 3.Miners rush to validate transactions. 4.Once transaction is verified, a new block is created and appended to the existing blocks.
  12. 12. What is a Node By keeping a shallow-copy of the blockchain aka a Light Client. By keeping a full-copy of the blockchain aka a Full Node. By verifying the transactions aka Mining Kenya A node is simply a computer that participates in the BlockChain network This participation can be in three ways:
  13. 13. What is a ‘Block’ Just like BRICKS are the building blocks of a HOUSE, BLOCKS themselves are the building blocks of a BLOCKCHAIN. A block contains transaction data and other important details related to the creation of that block, such as the time when it was created and other unique information. 
 
 In order to create a block, we must have a record which we wish to store
  14. 14. What is Hashing A hash is a function that converts an input of letters and numbers into an encrypted output of a fixed length. In the context of cryptocurrencies like Bitcoin, the transactions are taken as an input and run through a hashing algorithm which gives an output of a fixed length Blockchain uses a cryptographic hash function, meaning that the output is random but deterministic. This means the same input will always produce the same hash. That process is one-way, so the output (hash) cannot be used to produce the original input.
  15. 15. What is a Transaction? A Blockchain transaction can be defined as a small unit of task that is stored in public records. 
 
 These records are actually a group of blocks. A transaction is a transfer of Bitcoin value that is broadcast to the network and collected into blocks. A transaction typically references previous transaction outputs as new transaction inputs and dedicates all input Bitcoin values to new outputs. 
  16. 16. DEMO by Anders Brownworth https://anders.com/blockchain/blockchain.html
  17. 17. What is Mining Creates new ‘coins’ or ‘tokens’ to each block Confirms transactions in a ‘trustful’ manner and adds to existing block.Kenya It is a de-centralized computational process that serves two purposes Its expensive as it requires high computational power and electricity. However, you can use your system as a mining device with installed softwares.
  18. 18. Mining Machine Kenya Antminer S9 Bitcoin Miner
  19. 19. Mining Facility Kenya
  20. 20. How Transactions are Validated Proof of Work (PoW): Validating transactions utilizing a resource intensive hashing process confirming transactions between network participants (public miners) and writes the confirmed transactions into the blockchain ledger Proof of Stake (PoS): Validating blocks created by miners and requires users to prove ownership of their ‘stake’. Makes monopoly difficult and enhances security
  21. 21. History of the BlockChain
  22. 22. History of the BlockChain - First conceptualised by a person (group of people) known as 
 Satoshi Nakamoto in 2008. -Took root with the initial coin (BitCoin) the following year. - Satosi presented a white paper titled “Bitcoin: A peer-to-peer Electronic Cash System”.
  23. 23. Why was it Invented? Perceived shortcomings of the traditional banking and contracts systems Global Validation of Transactions Seperation of Powers from Elite Systems and organisations
  24. 24. Versions of the BlockChain - Blockchain 1.0 - ‘Grandpa BitCoin’. - Blockchain 2.0 - ‘Child Prodigy Ethereum’. - Blockchain 3.0 - ‘The Killers’. Bitcoin by Satoshi Nakamoto Ethereum by Vitalik Buterin Newer technologies like - The One, NEO - Business Focused, QTUM - Blockless chain, IOTA - Radix - Fundraiser, EOS - Nano
  25. 25. Types of BlockChain Fully Decentralized and uncontrolled networks with no access permission required
 
 Anyone can participate in the consensus process to determine with transaction blocks are added Public Blockchain
  26. 26. Types of BlockChain The consensus process for new transaction blocks is controlled by a fixed set of nodes, such as group of financial institutions where pre- existing trust is high
 
 Consortium Blockchain
  27. 27. Types of BlockChain Access permissions are tightly controlled, with rights to read or modify the blockchain restricted to certain users. Permission to read this blockchain is restricted. Private Blockchain
  28. 28. What is CryptoCurrency
  29. 29. What is CryptoCurrency Electronic peer-to-peer currencies. Do not physically exist. Measured against the real currencies Cryptocurrencies are ‘currencies’ that work and can be transacted on within the block chain technology Nigeria Kenya
  30. 30. Coins, Tokens & AltCoin: Coins: Operates on its own Blockchain. Has its own independent transaction ledgers.Used to transfer wealth. Tokens: Operates on an existing blockchain infrastructure like Ethereum. Can represent a “contract” for almost anything. AltCoins: Coins derived from or alternative to Bitcoin. Majority of coins are a variant(fork) of Bitcoin Nigeria Kenya What’s the difference?
  31. 31. How many cryptocurrencies are out there ? Officially there more than 1,300 cryptocurrencies (but BitCoin is King)
 Nearest challenger to the bitcoin’s technology and coin is Ethereum Nigeria Kenya
  32. 32. Top CryptoCurrencies as at June 19, 2018 Nigeria Kenya Name Market Cap $ Price $ Circulating Supply BitCoin 115,347,760,477 6,744.29 17,103,025 BTC Ethereum 53,324,131,720 532.30 100,176,651 ETH Ripple 21,273,231,363 0.542058 39,245,304,677 XRP Bitcoin Cash 15,345,147,768 892.55 17,192,538 BCH EOS 9,484,129,305 10.58 896,149,492 EOS LiteCoin 5,625,300,432 98.60 57,049,646 LTC Stellar 4,379,126,608 0.235326 18,608,766,596 XLM Cardano 4,272,547,881 0.164791 25, 927,070,538 ADA IOTA 3,274,648,012 1.18 2,779,530,283 MIOTA TRON 3,146,224,662 0.047853 65,748,111,645 TRX
  33. 33. BlockChain Applications Globally Health Care Nigeria Kenya MedRec – An MIT project involving blockchain electronic medical records designed to manage authentication, confidentiality and data sharing.
 - https://medrec.media.mit.edu/ Financial Services Barclays – Barclays has launched a number of blockchain initiatives involving tracking financial transactions, compliance and combating fraud. It states that “Our belief ...is that blockchain is a fundamental part of the new operating system for the planet.”
 - https://www.barclayscorporate.com/insight-and-research/technology-and-digital-innovation/what-does- blockchain-do.html Retail Loyyal – Powered by blockchain and smart contract technology, this loyalty and rewards platform creates more customized programs that even allow for multi-branded rewards.
 - https://www.loyyal.com/
  34. 34. BlockChain Applications Globally - contd Real Estate Nigeria Kenya BitProperty – Using blockchain and smart contracts, BitProperty wants to democratize opportunity and create a decentralized society by allowing anyone anywhere in the world (except the U.S. and Japan due to regulatory concerns) to invest in real estate.
 - https://btptoken.io/en/ Transport and Tourism Guts – A transparent ticketing ecosystem that uses blockchain technology to eliminate ticket fraud and the secondary ticket market. 
 - https://guts.tickets/ Media KODAKOne – Kodak recently sent its stock soaring after announcing that it is developing a blockchain system for tracking intellectual property rights and payments to photographers.
 
 - https://www.reuters.com/article/us-crypto-currencies-eastman-kodak/kodak-blockchain-project-seeks-to- raise-50-million-in-token-offering-idUSKBN1IB1J7/
  35. 35. Ethereum
  36. 36. “[Blockchain] is to Bitcoin, what the internet is to email. A big electronic system, on top of which you can build applications. Currency is just one.” Sally Davies, FT Technology Reporter
  37. 37. What is Ethereum? Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third- party interference. While bitcoin aims to disrupt PayPal and online banking, ethereum has the goal of using a blockchain to replace internet third parties — those that store data, transfer mortgages and keep track of complex financial instruments.
  38. 38. Origin of Ethereum Created By Vitalik Buterin Presented a paper to support building of decentralised applications. Announced Jan 2014 Aim was to make the new blockchain support different applications that can run on blockchain technology Current count is 100 million Ether in circulation as at May 2018 Nigeria Kenya
  39. 39. Components within Ethereum Nigeria Kenya Ether: is a crypto-currency whose blockchain is generated by Ethereum Ethereum Virtual Machine (EVM) : is a de-centralized Turing-complete virtual machine, which can execute complex scripts using an international network of nodes. It enables anyone to run any program, regardless of the programming language given enough time and memory. Smart Contracts: A program running specifically on the Ethereum Blockchain to execute different third party agreements.
  40. 40. Smart Contracts
  41. 41. What are Smart Contracts? It is a computer program code that facilitates and enforces the rules for a transaction to occur. These contracts work when triggered, so, “if this happens, then do that”. It is completely automated, verified by many computers, and can be used to complement or even replace a legal contracts A smart contract is similar to a contract in the physical world, but it’s digital and is represented by a tiny computer program stored inside a blockchain.
  42. 42. Nigeria Kenya How Smart Contract Works
  43. 43. Nigeria Kenya How Smart Contract Works
  44. 44. What makes it better? Trust - You won’t have anyone coming back to you because they misplaced your contract
 Safety - Your documents are kept safe via cryptography (a high level of encryption)
 Accuracy - Since your contracts run on code and are not filled out manually, which also allows maximum efficiency, you can avoid traditional issues that can cost time and money Nigeria Kenya
  45. 45. Concerns and Issues of BlockChain
  46. 46. Blockchain Concerns Ban - Some countries have outrightly banned the use of blockchain technology Expensive - To run a blockchain or be part of it requires tremendous amount of resources. Network, Power and Miners are required at a constant rate. Bubble Burst - The technology being overhyped and eventually ‘burst’. Volatility - The currencies are highly volatile. Its not for the faint of heart.Its risky. Nigeria Kenya
  47. 47. Blockchain Concerns - contd Complex - A lot of users may find it confusing to understand. 
 Slow and cumbersome - To validate a transaction can take hours in some cases due to their complexity , encrypted and distributed nature
 Vested Interest - The more establish financial institutions may not buy into it. Nigeria Kenya
  48. 48. Why should I care
  49. 49. Top 20 fastest growing skills, Q1 , 2018 1.Blockchain 2.Tensorflow 3.Amazon DynamoDB 4.Voice over 5.Subtitling 6.Art direction 7.Content strategy 8.Computer vision 9.Microsoft Power BI 10.Augmented reality 11. Chatbot development 12. React native 13. Media buying 14. Go development 15. Information security 16. Scala development 17. Instagram API 18. Adobe Premiere 19. Machine learning 20. AngularJS development From a Developers’ Point of View
  50. 50. From a Business Point of View More Solutions are being built around it
 
 Gradual Acceptance World wide
  51. 51. Can I start a blockchain Technology or own a currency?
  52. 52. YES!!!
  53. 53. Blockchain/Currency To Dos Learn CryptoCurrency/BlockChain Programming Use Community to Nurture Currency Code for the Long Run Get Miners OnBoard Know your Merchants Global Acceptance is Key Use AltCoin Nigeria Kenya
  54. 54. “PayPal had these goals of creating a new currency. We failed at that, and we just created a new payment system. I think Bitcoin has succeeded on the level of a new currency, but the payment system is somewhat lacking. It’s very hard to use, and that’s the big challenge on the Bitcoin side.” - Peter Thiel, Co-Founder, Paypal Copyright 2018 Andela “Had you asked me five years ago, I would just say it was impossible. Bitcoin and cryptocurrencies solved this problem of coming to a consensus globally where you don’t trust anybody else.” - Richard Brown, Executive Architect, IBM “Bitcoin may be the TCP/IP of money..” - Paul Buchheim, Creator of GMail, Google
  55. 55. Thank You
  56. 56. Questions

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