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Blockchains 101 - Muneeb Ali, Blockstack Labs

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Get introduced to blockchains, how Bitcoin (the most secure blockchain) works, and discover what new types of applications and services are enabled by blockchains. Explore what is a Bitcoin miner, what is a 51% attack, how to sign transactions, what are unspent outputs. Further, learn about limitations of blockchains (limited storage, slow write times) and solutions to these limitations.

Muneeb Ali, Blockstack Labs

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Blockchains 101 - Muneeb Ali, Blockstack Labs

  1. 1. Blockchains 101 Muneeb Ali
  2. 2. Outline — Overview of blockchains — How blockchains work — What are the challenges with blockchains — How to build apps with blockchains
  3. 3. Background
  4. 4. The Early Days of Bitcoin
  5. 5. How Blockchains Work Let’s design a new currency…
  6. 6. How Blockchains Work Let’s design a new currency… Muneeb Ali 10 coins Brian Kernighan 10 coins
  7. 7. How Blockchains Work Let’s design a new currency… Muneeb Ali 10 coins Brian Kernighan 10 coins Paul Krugman 0 coins
  8. 8. How Blockchains Work Let’s design a new currency… Muneeb Ali 10 coins Brian Kernighan 10 coins Paul Krugman 0 coins Muneeb —> Krugman 2 coins (unconfirmed)
  9. 9. How Blockchains Work Let’s design a new currency… Muneeb Ali 8 coins Brian Kernighan 10 coins Paul Krugman 2 coins Muneeb —> Krugman 2 coins (confirmed)
  10. 10. How Blockchains Work Congratulations! You just learned how blockchains work.
  11. 11. How Blockchains Work Muneeb Ali 8 coins Brian Kernighan 10 coins Paul Krugman 2 coins Muneeb —> Krugman 2 coins (confirmed) Bill Gates 0 coins
  12. 12. How Blockchains Work Muneeb Ali 8 coins Brian Kernighan 10 coins Paul Krugman 2 coins Muneeb —> Krugman 2 coins (confirmed) Bill Gates 0 coins Muneeb —> Bill 2 coins (unconfirmed)
  13. 13. How Blockchains Work We need a distributed ledger (blockchain)
  14. 14. — It’s a file! — Append-only global log — Every node on the network has a consistent copy Blockchain How Blockchains Work
  15. 15. General Challenges with Blockchains: — Storage limitations (blockchain bloat) — Introducing new features (hard fork)— Introducing new features (hard fork) — Slow writes — Endless ledger problem
  16. 16. •  Private-public key pairs How Blockchains Work:
  17. 17. •  Private-public key pairs •  Bitcoin address = deterministic from pubkey How Blockchains Work:
  18. 18. •  No such thing as a “bitcoin”. Only inputs and outputs •  21 million total bitcoins (fixed) •  50 BTC minted each block, halved to 25 BTC How Blockchains Work:
  19. 19. How Blockchains Work:
  20. 20. How Blockchains Work:
  21. 21. 000009ff7ff1fc53b92dc18148a1d65dfc2d4b1fa3d677284addd200126d9069 How Blockchains Work:
  22. 22. 1 2 3 ….. 3000 Register hash(name) Update name How Blockchains Work:
  23. 23. Building Apps with Blockchains
  24. 24. Blockchain Application Stack
  25. 25. Blockchain Naming Identity Authentication Storage App AppApp
  26. 26. Blockstack Network bitcoin node (bitcoind) blockstack server bitcoind peer connection rpc connection to bitcoind
  27. 27. Bitcoin Global Naming (TLDs) Ethereum Hyperledger Blockchain Driver Blockchain Driver Blockchain Driver Multiple Blockchains:
  28. 28. Production Use
  29. 29. 300,000 200,000 100,000 Blockstack byteswritten — Largest non-financial production system on Bitcoin
  30. 30. Lessons from Production Use: — Storage limitations (blockchain bloat) —> Unlimited data — Introducing new features (hard fork)— Introducing new features (hard fork) —> Virtualchain — Slow writes —> Get operations off blockchain path — Security issues —> Need to use most secure blockchain Details: Blockstack Paper, Proc. 2016 USENIX Annual Technical Conference
  31. 31. Blockstack CLI Blockstack gives you fast, secure, and easy-to-use DNS, PKI, identity management, and custom namespaces on the blockchain
  32. 32. Namespaces:
  33. 33. Thank You! Comments? Tweet them @muneeb Web: http://blockstack.org Code: github.com/blockstack

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