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Blockchain and Smart Contracts

This document provides an introduction to blockchain and smart contracts for software developers and architects. It discusses why blockchain is significant, defining blockchain as a decentralized ledger replicated across many computers running a consensus algorithm. It explains how blockchain differs from traditional databases by allowing multiple untrusted writers to interact through transactions while resolving conflicts. The document introduces smart contracts and provides examples. It also gives a hands-on introduction to developing smart contracts using Ethereum and Solidity.

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BLOCKCHAIN AND SMART
CONTRACTS
Introduction for Software
Developers and Architects
WHY BLOCKCHAIN IS A BIG DEAL
“Bitcoin is a technological tour de force.” – Bill Gates
”I think the fact that within the bitcoin universe an algorithm replaces
the function of the government …[that] is actually pretty cool.” - Al
Gore
“[Bitcoin] is a remarkable cryptographic achievement… The ability to
create something which is not duplicable in the digital world has
enormous value…Lot’s of people will build businesses on top of that.”
- Eric Schmidt
BLOCKCHAIN IS
Ledger of facts
Ledger of facts replicated across large number of
computers
Ledger of facts replicated across large number of
computers connected as peer-to-peer network
Ledger of facts replicated across large number of
computers connected as peer-to-peer network that
implements consensus algorithm that can securely
identify sender and receiver of facts
FACTS
Monetary
transaction
Content
hash
Signature
Asset
information
Ownership
Agreement
Contract
IS IT JUST ANOTHER SHARED
DATABASE?
NOT JUST ANOTHER DATABASE
Multiple Writers
Non-trusting
writers
Disintermediation
Interaction
between
transactions
Conflict
resolution
HOW?
Blocks
Decentralized consensus
Byzantine fault tolerance.

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Blockchain and Smart Contracts

  • 1. BLOCKCHAIN AND SMART CONTRACTS Introduction for Software Developers and Architects
  • 2. WHY BLOCKCHAIN IS A BIG DEAL “Bitcoin is a technological tour de force.” – Bill Gates ”I think the fact that within the bitcoin universe an algorithm replaces the function of the government …[that] is actually pretty cool.” - Al Gore “[Bitcoin] is a remarkable cryptographic achievement… The ability to create something which is not duplicable in the digital world has enormous value…Lot’s of people will build businesses on top of that.” - Eric Schmidt
  • 3. BLOCKCHAIN IS Ledger of facts Ledger of facts replicated across large number of computers Ledger of facts replicated across large number of computers connected as peer-to-peer network Ledger of facts replicated across large number of computers connected as peer-to-peer network that implements consensus algorithm that can securely identify sender and receiver of facts FACTS Monetary transaction Content hash Signature Asset information Ownership Agreement Contract
  • 4. IS IT JUST ANOTHER SHARED DATABASE?
  • 5. NOT JUST ANOTHER DATABASE Multiple Writers Non-trusting writers Disintermediation Interaction between transactions Conflict resolution
  • 11. EXAMPLE OF A CONTRACT
  • 12. EXAMPLE OF SMART CONTRACT
  • 13. SMART CONTRACT USE CASES ICO Digital Identity Public records Securities International trade Derivatives Mortgages Land title Supply chain
  • 15. DEVELOPING SMART CONTRACT WITH TRUFFLE Write Code Create deployment script Migrate/Deploy
  • 16. PREREQUISITES •$ sudo npm install -g truffle •$ mkdir solidity-experiments •$ cd solidity-experiments/ •$ truffle init Truffle Framework •$ sudo npm install -g ethereumjs-testrpc •$ testrpc & Etherium test network •module.exports = { • networks: { • development: { • host: "localhost", • port: 8545, • network_id: "*" // Match any network id • } • } •} Configure truffle.js
  • 17. HELLO WORLD CONTRACT (SOLIDITY CODE) pragma solidity ^0.4.4; contract Hello { function Hello() public { // constructor } function sayHello() public pure returns (string) { //console.log("sayHello() function called..."); return 'Hello World!'; } }
  • 18. DEPLOYMENT SCRIPT var Hello1 = artifacts.require("./Hello.sol"); module.exports = function(deployer) { deployer.deploy(Hello1); };
  • 19. CONTRACT DEPLOYMENT $ truffle console truffle(development)> truffle migrate --reset Using network 'development'. Running migration: 1_initial_migration.js Deploying Migrations... ... 0xb6bbeaaf3649ecb38d548cba96f681682dad9e0225726924fbee3ce3 6eff94e3 Migrations: 0xc08c46796ba0edc0bebbbd0d90868c010055cb0e Saving successful migration to network... ... 0x16fe364b9f2c3e8f07fa1ebd6b84b8ad9b4e750d8698a7e920d824eb d019dd80 Saving artifacts... Running migration: 2_deploy_contracts.js Deploying Hello... ... 0xfe120836b2d7395bd988104feff018fe352f93555f71003bbf1a6467 1cca9ba1 Hello: 0x2b649a87d20ce1ac3b6a0218e911165fa0f095f0 Saving successful migration to network... ... 0x1a09073a3b3f7996f3d63a81a99d8cd09198ad7b467f35f7ddc500a 4291332b9 Saving artifacts... truffle(development)>
  • 20. CONTRACT TEST truffle(development)> var he = Hello.at(Hello.address) Undefined truffle(development)> he.sayHello() 'Hello World!'
  • 21. STAY IN TOUCH Gene Leybzon https://www.linkedin.com/in/leybzon/ https://www.meetup.com/members/90744 20/ https://www.Leybzon.com
  • 22. ANNOUNCEM ENTS Blockchain and Crypto "Unconference" this Sunday 1/28 from 3-5PM in room Z301 at the GSB Stanford

Editor's Notes

  1. Image from http://techatlast.com/wp-content/uploads/2017/08/How-blockchain-technology-works.png
  2. Image from https://commons.wikimedia.org/wiki/File:Smart_contracts_in_insurance_policies.png
  3. http://leybzon.blogspot.com/2018/01/hello-world-from-solidity.html
  4. http://leybzon.blogspot.com/2018/01/hello-world-from-solidity.html
  5. http://leybzon.blogspot.com/2018/01/hello-world-from-solidity.html
  6. http://leybzon.blogspot.com/2018/01/hello-world-from-solidity.html