2. Agenda
โข What Is Blockchain
โข Back to Basics
โข Blockchain as Technology
โข How Blockchain Works
โข Blockchain Use cases
โข Application of Blockchain
โข Q&A
3. What Is Blockchain
โข A unique, public and
transparent distributed ledger
โข That stores all transactions
immutably and
โข Permits predefined actions on
those transactions
โข In a cryptographically secured
environment.
5. Back to Basics -
Decentralized money (analogy)
โข Yapis a nation in the South
Pacific, living on a set of
Islands
โข Rai stonesโUsed for
exchange
โข circular stone disks that can
be up to 3.5 m in diameter
and weigh up to 4000 Kg!
โข Trading stones of this size is
difficult
6. Back to Basics -
Centralized Ledger
โข Write down every transaction in a
book called a ledger
โข Bookkeeper appointed
โข Alice pays Bob 10 lbs of Rai,
โข Alice goes to bookkeeperโs
house and announces the
transaction.
โข Everything worked well for a while,
but gradually, problems appeared:
โข Feeโs, Availability of Bookkeeper,
โข Corruption
โข Centralization of Power
7. Decentralization and More Trust
โtrustlessโ
โข Decided to find a new way
โข Every family would maintain its own
ledger!
โข Alice pays Bob 10 lbs of Rai,
โข Alice announces the new transaction to all
other families.
โข Each family would then check their own
ledger
โข No a single family had more power than
any other!
16. Types of Blockchain
โข Public blockchain: Anyone can use it,
send transactions, participate, explore
the blockchain, validate it.
Example: Bitcoin, Ethereum
โข Consortium blockchain: Controlled by a
pre-selected set of nodes; for example
consortium of 15 financial institutions,
each operates a node. The right to read
the blockchainmay be public, or
restricted to the participants.
Example:R3
โข Private blockchain: Permission
management is kept centralized to one
organization. Read permissions may be
public or restricted to an arbitrary
extent.
Examples:Eris Industries,Multichain