In this Blockchain In-depth Tutorial, you will learn everything related to blockchain and its related concepts like, bitcoin, mining, smart contracts, proof-of-Work, hashing, encryption, areas where blockchain is used with proper demonstrations. How to become a blockchain developer, what are the requirements for it, also what salary is offered to them and what companies want to hire them. At the end of this video I assure you that all your concepts related to Blockchain will be cleared. What is Blockchain? What is Bitcoin’s story? Features of Blockchain Use-Case: Blockchain and Banks Byzantine Fault Tolerance Adding 2 blocks at the same time Areas where blockchain is used The future of Blockchain Blockchain Jobs Use-case: Movie Ratings Smart Contract Why do we need Blockchain? Challenges in Blockchain Healthcare Use-Cases Government Use-Cases Blockchain In KYC Blockchain in Trade Finance Who is a Blockchain Developer? Types of Blockchain Developer Steps to Become a Blockchain Developer Obstacles in learning Blockchain Salary of Blockchain Developers How are companies using Blockchain? 🔥Free Blockchain Developer Course with Completion Certificate: https://www.simplilearn.com/learn-blo... ✅Subscribe to our Channel to learn more about the top Technologies: https://bit.ly/2VT4WtH ⏩ Check out the Blockchain training videos: https://www.youtube.com/watch?v=yubzJ... #BlockchainIn-DepthTutorialforBeginners #Blockchain #BlockchainTutorialForBeginners #BlockchainDeveloper #CryptocurrencyTrends2022 #BlockchainAndCryptocurrencyTrends2022 #BlockchainTrends #CryptocurrencyTrends #Cryptocurrency #BlockchainTechnology #Crypto #Simplilearn To know about cryptocurrency and Blockchain, visit: https://www.simplilearn.com/blockchai... About Simplilearn Blockchain Certification Training: Simplilearn’s Blockchain Certification Training has been designed for developers who want to decipher the global craze surrounding Blockchain, Bitcoin, and cryptocurrencies. You’ll learn the core structure and technical mechanisms of Bitcoin, Ethereum, Hyperledger, and Multichain Blockchain platforms, use the latest tools to build Blockchain applications, set up your own private Blockchain, deploy smart contracts on Ethereum and gain practical experience with real-world projects. Why learn Blockchain? Blockchain technology is the brainchild of Satoshi Nakamoto, which enables digital information to be distributed. A network of computing nodes makes up the Blockchain. Durability, robustness, success rate, transparency, and incorruptibility are some of the enticing characteristics of Blockchain. By design, Blockchain is a decentralized technology that is used by a global network of computers to manage Bitcoin transactions easily. Many new business applications will result in the usage of Blockchain, such as Crowdfunding, smart contracts, supply chain auditing, Internet of Things(IoT), etc. After completing this course, you will be able to: 1. Apply Bitcoin and Bloc

3. There’s a lot you need to learn before you can understand Blockchain completely.
Here’s what we’ll be going through today:
What is Blockchain?
The Bitcoin story
Public distributed ledger
Hash encryption
Proof of work
Mining
Use Case: Applying Blockchain to a banking
system to incorporate identification cards
The Feature of Blockchain:
Types of Blockchain

5. In a city not so far away…

6. Somebody was up to something bad…

7. Somebody was up to something bad…
I hate ABC Bank! I’m going
to steal all their money and
give it to the people who
deserve it!

8. High international
transfer costs
ABC Bank is making people’s lives so difficult!

9. High international
transfer costs
A lot of documentation setting
up an account
ABC Bank is making people’s lives so difficult!

10. High international
transfer costs
A lot of documentation setting
up an account
Not always accessible
(bank holidays)
ABC Bank is making people’s lives so difficult!

11. Banks are a central
point of failure!

21. All of this with a
click of a button!

22. CLICK!

23. And although the hacker was caught…

24. And although the hacker was caught…

25. THE incident caught the bank manager’s attention
I want to make sure this
doesn’t happen again!

26. That’s what I’m here to
make sure!

27. So, have you thought about
a set-up using Blockchain?

28. Blockchain? What’s
that?

29. What Is DLT?

30. What is DLT?
The technology framework and protocols known as Distributed Ledger Technology
(DLT) enable simultaneous
access

31. What is DLT?
The technology framework and protocols known as Distributed Ledger Technology
(DLT) enable simultaneous
access validation

32. What is DLT?
The technology framework and protocols known as Distributed Ledger Technology
(DLT) enable simultaneous
access validation
Record
updates

33. What is DLT?
The technology framework and protocols known as Distributed Ledger Technology
(DLT) enable simultaneous
access validation
Record
updates
Using encryption, DLT enables the safe and accurate storage of
any data

34. The technology framework and protocols known as Distributed Ledger Technology
(DLT) enable simultaneous
access validation
Record
updates
Using encryption, DLT enables the safe and accurate storage of
any data
What is DLT?
A "decentralized" network as an
alternative to the traditional
"centralized" method is the core
concept of DLT

35. What Is Blockchain?

36. What is a Blockchain?
A Blockchain is a list of records(blocks) which stores data publicly and in chronological
order
Secured using
cryptography

37. A Blockchain is a list of records(blocks) which stores data publicly and in chronological
order
Secured using
cryptography
It ensures that the privacy of the
user is maintained and data cannot
be altered
What is a Blockchain?

38. What is a Blockchain?
A Blockchain is a list of records(blocks) which stores data publicly and in chronological
order
Secured using
cryptography
Not controlled by a
central authority

39. A Blockchain is a list of records(blocks) which stores data publicly and in chronological
order
Secured using
cryptography
Not controlled by a
central authority
Unlike modern financial
institutions, nobody controls the
data within a Blockchain
What is a Blockchain?

40. What is a Blockchain?
A Blockchain is a list of records(blocks) which stores data publicly and in chronological
order
Secured using
cryptography
Not controlled by a
central authority
Access to anyone on
the network

41. A Blockchain is a list of records(blocks) which stores data publicly and in chronological
order
Secured using
cryptography
Not controlled by a
central authority
Access to anyone on
the network
As long as you have access to the
network, you have access to the
data within the Blockchain
What is a Blockchain?

42. What is a Blockchain?
A Blockchain is a list of records(blocks) which stores data publicly and in chronological
order
Secured using
cryptography
Not controlled by a
central authority
Access to anyone on
the network
Everyone has copies
of the data

43. A Blockchain is a list of records(blocks) which stores data publicly and in chronological
order
Secured using
cryptography
Not controlled by a
central authority
Access to anyone on
the network
Everyone has copies
of the data
Everyone in the network has a
copy of the Blockchain, which is
used for ensuring that the data
remains untampered
What is a Blockchain?

44. Oh! Is this the same
technology that Bitcoin
works on?

45. Yes! Bitcoin couldn’t
have been possible
without Blockchain

46. The Bitcoin Story

47. The Bitcoin Story
Bitcoin was introduced in 2009,
by someone or a group of people
known as Satoshi Nakamoto

48. The Bitcoin Story
Bitcoin was introduced in 2009,
by someone or a group of people
known as Satoshi Nakamoto
It aimed to solve the problems
faced by fiat currencies, with the
help of Blockchain technology

49. The Bitcoin Story
Bitcoin was introduced in 2009,
by someone or a group of people
known as Satoshi Nakamoto
It aimed to solve the problems
faced by fiat currencies, with the
help of Blockchain technology
Now, in 2018, there’s more than
1600 cryptocurrencies that follow
the concepts of Bitcoin and
Blockchain

50. The Bitcoin Story
Now, let me explain how a Bitcoin
transaction works

51. The Bitcoin Story
Sender Receiver
The sender transmits the
transaction details worldwide

52. The Bitcoin Story
Sender Receiver
The sender transmits the
transaction details worldwide
Verification to authenticate users, by
miners around the world

53. The Bitcoin Story
Sender Receiver
The sender transmits the
transaction details worldwide
Once authenticated, the
transaction is added to a block
and made part of the Blockchain
Verification to authenticate users, by
miners around the world

54. The Bitcoin Story
Sender Receiver
The sender transmits the
transaction details worldwide
Once authenticated, the
transaction is added to a block
and made part of the Blockchain
Money is deducted from
sender’s wallet
Money is added to the
receiver’s wallet
Verification to authenticate users, by
miners around the world

55. The Bitcoin Story
Sender Receiver
The sender transmits the
transaction details worldwide
Once authenticated, the
transaction is added to a block
and made part of the Blockchain
Money is deducted from
sender’s wallet
Money is added to the
receiver’s wallet
Everyone in the network updates their copy of the
Blockchain
Verification to authenticate users, by
miners around the world

56. So, what makes
Blockchain special?

57. The Features Of Blockchain

58. Blockchain has 4 major features
The Features of Blockchain
Public
distributed
ledger

59. Blockchain has 4 major features
The Features of Blockchain
Public
distributed
ledger
Hash
encryption

60. Blockchain has 4 major features
The Features of Blockchain
Public
distributed
ledger
Hash
encryption
Consensus
Mechanism

61. Blockchain has 4 major features
The Features of Blockchain
Public
distributed
ledger
Hash
encryption
Consensus
Mechanism Mining

62. Blockchain has 4 major features
The Features of Blockchain
Public
distributed
ledger
Hash
encryption
Consensus
Mechanism Mining

63. Public Distributed Ledger

64. Public Distributed Ledger
Imagine 4 friends sharing
a particular document
amongst each other

65. Public Distributed Ledger
If there was only a single
copy of that document, and
one of them altered the
data, it may go unnoticed

66. Public Distributed Ledger
However, the outcome
would be different, if each
one of them had a copy of
the data

67. Public Distributed Ledger
However, the outcome
would be different, if each
one of them had a copy of
the data

68. Public Distributed Ledger
Even if one of them
changed the data, the
others would find that the
data doesn’t match with
their own

69. Public Distributed Ledger
Blockchain works in a
similar manner!

70. Public Distributed Ledger
The data within a
Blockchain is accessible to
everyone

71. The data within a
Blockchain is accessible to
everyone
With this, as long as you are part of the
network, you could access the entire history of
transactions that have taken place since the
Blockchain was created
Public Distributed Ledger

72. Public Distributed Ledger
The data within a
Blockchain is accessible to
everyone
Any additions to
Blockchain have to be
approved by the users

73. The data within a
Blockchain is accessible to
everyone
Any additions to
Blockchain have to be
approved by the users
A majority of the members within the network have to
approve any additions to the Blockchain. This is the
‘public’ part of the ledger. This is important because…
Public Distributed Ledger

74. Public Distributed Ledger
The data within a
Blockchain is accessible to
everyone
Any additions to
Blockchain have to be
approved by the users
Any additions made to the
Blockchain are permanent

75. The data within a
Blockchain is accessible to
everyone
Any additions to
Blockchain have to be
approved by the users
Any additions made to the
Blockchain are permanent
This means that each and every detail is recorded and
any alterations can be detected by verifying it against
everyone’s personal version of the Blockchain
Public Distributed Ledger

76. Public Distributed Ledger
The data within a
Blockchain is accessible to
everyone
Any additions to
Blockchain have to be
approved by the users
Any additions made to the
Blockchain are permanent
No central authority to
control how it works

77. The data within a
Blockchain is accessible to
everyone
Any additions to
Blockchain have to be
approved by the users
Any additions made to the
Blockchain are permanent
No central authority to
control how it works
This is where being decentralized helps. Everyone has a copy
of the Blockchain. Which means there’s no central point of
failure. This means that even if things go wrong, the data can
be recovered
Public Distributed Ledger

78. But what about security?
How is privacy maintained
if everything is so public?

79. Hash Encryption

80. Hash encryption takes
care of that!
Hash Encryption

81. But to understand hash
encryption, you need to
know the contents of a
block
Hash Encryption

82. A block is a container that
holds transaction details
Hash Encryption

83. A block has two parts:
Hash Encryption
Header
Transaction Details

84. Header
The header contains the
metadata about the block.
Hash Encryption
Block ver. No
Hash(Prev. Block)
Timestamp
Nonce
Target

85. Transaction Details
Hash Encryption
The transaction details contain:
Sender and receiver
information
Amount to be
transferred
It is represented in the form of a 256 bit
hash value in the header called merkle
root

86. The transaction details of a block are contained in the header in a hex value known as merkle
root
Hash Encryption
The merkle root can be calculated in this way:
# f98534ab…
aca987c2… a4b5213c...
#
List of transactions Each transaction is
passed through a
hashing algorithm
Hashed outputs
are paired
Passed through
hashing algorithm
Until there’s only one
value remaining

87. Let me tell you how a hash
function works
Hash Encryption

88. Hash Encryption
Blockchain utilizes a hash function to perform cryptography
#
Data from a
dataset of
random size
Hashing function Encrypted output of
fixed size

89. Hash Encryption
Blockchain utilizes a hash function to perform cryptography
#
Data from a
dataset of
random size
Hashing function Encrypted output of
fixed size
Some unique properties of
hashing functions are:
1) These are deterministic
2) Small changes in the data
can drastically change the
output
3) Can be computed easily
4) Are one way functions

90. Blockchain utilizes a hash function to perform cryptography
#
Data from a
dataset of
random size
Hashing function Encrypted output of
fixed size
Some unique properties of
hashing functions are:
2) Small changes in the data
can drastically change the
output
3) Can be computed easily
4) Are one way functions
1) These are deterministic
Hash Encryption

91. Blockchain utilizes a hash function to perform cryptography
#
Data from a
dataset of
random size
Hashing function Encrypted output of
fixed size
Some unique properties of
hashing functions are:
2) Small changes in the data
can drastically change the
output
3) Can be computed easily
4) Are one way functions
1) These are deterministic
The same input produces
the same output
Hash Encryption

92. Blockchain utilizes a hash function to perform cryptography
#
Data from a
dataset of
random size
Hashing function Encrypted output of
fixed size
Some unique properties of
hashing functions are:
3) Can be computed easily
4) Are one way functions
1) These are deterministic
2) Small changes in the data
can drastically change the
output
Hash Encryption

93. Blockchain utilizes a hash function to perform cryptography
#
Data from a
dataset of
random size
Hashing function Encrypted output of
fixed size
Some unique properties of
hashing functions are:
2) Small changes in the data
can drastically change the
output
3) Can be computed easily
4) Are one way functions
1) These are deterministic
Any change to the input
produces an output that’s
drastically different from
previously obtained
outputs
Hash Encryption

94. Blockchain utilizes a hash function to perform cryptography
#
Data from a
dataset of
random size
Hashing function Encrypted output of
fixed size
Some unique properties of
hashing functions are:
2) Small changes in the data
can drastically change the
output
4) Are one way functions
1) These are deterministic
3) Can be computed easily
Hash Encryption

95. Blockchain utilizes a hash function to perform cryptography
#
Data from a
dataset of
random size
Hashing function Encrypted output of
fixed size
Some unique properties of
hashing functions are:
2) Small changes in the data
can drastically change the
output
3) Can be computed easily
4) Are one way functions
1) These are deterministic
The output values can be
obtained without whole lot
of calculation
Hash Encryption

96. Blockchain utilizes a hash function to perform cryptography
#
Data from a
dataset of
random size
Hashing function Encrypted output of
fixed size
Some unique properties of
hashing functions are:
2) Small changes in the data
can drastically change the
output
3) Can be computed easily
1) These are deterministic
4) Are one way functions
Hash Encryption

97. Blockchain utilizes a hash function to perform cryptography
#
Data from a
dataset of
random size
Hashing function Encrypted output of
fixed size
Some unique properties of
hashing functions are:
2) Small changes in the data
can drastically change the
output
3) Can be computed easily
4) Are one way functions
1) These are deterministic
You won’t be able to
determine the input based
on the output values
Hash Encryption

98. Let’s go back to the block
we were talking about
earlier…
Hash Encryption

99. Transaction
Details
Nonce
Hash value
The previous hash is the resultant hash
value of the previous block in the
Blockchain
Previous Hash
Hash Encryption

100. Nonce
Hash value
Previous Hash
These are used to provide details about the
sender, receiver and how much money was
sent between them
Transaction
Details
Hash Encryption

101. Previous Hash
Transaction
Details
Hash value
Nonce
The nonce is a value that is varied
to create a unique hash address for
the block
Hash Encryption

102. Transaction
Details
Nonce
Previous Hash
Block ver. No
Hash(Prev. Block)
Timestamp
Nonce
Target
#
Hash value
Hashing
Algorithm
(SHA256)
Hash value
Hash Encryption

103. Transaction
Details
Nonce
Previous Hash
Hash value
This value is a 256 bit value
that is used to uniquely
identify that particular block
Hash Encryption

104. Hash Encryption
SHA256 ensures that alterations to data can be easily detected
Transaction
Details
Nonce
Hash value
Previous Hash
Transaction
Details
Nonce
Hash value
Previous Hash
For example, consider these two block in the Blockchain…

105. Hash Encryption
If someone alters the transaction details in the first block…
Transaction
Details
Nonce
Hash value
Previous Hash
Transaction
Details
Nonce
Hash value
Previous Hash

106. Hash Encryption
The corresponding hash value of the value would change too
Transaction
Details
Nonce
Hash value
Previous Hash
Transaction
Details
Nonce
Hash value
Previous Hash

107. Hash Encryption
The values of Hash value of the first block and Previous Hash of the other block will not match
Transaction
Details
Nonce
Hash value
Previous Hash
Transaction
Details
Nonce
Hash value
Previous Hash

108. Hash Encryption
So, the alteration can be easily
identified and rectified immediately

109. Hash Encryption
To ensure security, Blockchains also include digital signatures
These ensure:
That the message came
from the right person

110. Hash Encryption
To ensure security, Blockchains also include digital signatures
These ensure:
That the message came
from the right person
That the message wasn’t
tampered with

111. Hash Encryption
To ensure security, Blockchains also include digital signatures
Users are provided their own private and public keys
Private key
Used by user to control his/ her
account. This is kept as a secret
by the user

112. Hash Encryption
To ensure security, Blockchains also include digital signatures
Users are provided their own private and public keys
Private key
Used by user to control his/ her
account. This is kept as a secret
by the user
Used to identify the user in the
network. This is shared by the
user

113. Hash Encryption
The steps involved in creating and authenticating a digital signature are:
The sender’s side:
# a4b5213c...
The message to be transmitted is passed
through a hashing algorithm (SHA256)

114. Hash Encryption
The steps involved in creating and authenticating a digital signature are:
# a4b5213c...
The output is passed through a signature
algorithm along with the user’s private key to
create a digital signature
The sender’s side:

115. Hash Encryption
The steps involved in creating and authenticating a digital signature are:
During transmission:
The user’s message, their digital fingerprint and public key are
transmitted across the network

116. Hash Encryption
The steps involved in creating and authenticating a digital signature are:
At the receiver’s end:
# a4b5213c...
a4b5213c... }
First, the message is passed through a hashing algorithm. At the same time, the sender’s public key and
his/her digital signature are passed through a verification algorithm. The output hashes are then
compared to authenticate the user

117. What about the people
who verify these
transactions? And how do
they actually do it?

118. Remember that one field in
the block header called the
nonce? That becomes very
important here

119. Consensus Mechanism

120. Consensus Mechanism
Proof of work involves people around the world (called miners) compete to be the first
one to add a block to the Blockchain

121. Consensus Mechanism
Proof of work involves people around the world (called miners) compete to be the first
one to add a block to the Blockchain
They can achieve this by being
the first ones to solve a
mathematical puzzle

122. Consensus Mechanism
Proof of work involves people around the world (called miners) compete to be the first
one to add a block to the Blockchain
They can achieve this by being
the first ones to solve a
mathematical puzzle
Previous Hash
Transaction
Details
Nonce
Hash value
They need to find a hash
value that satisfies certain
predefined conditions

123. Consensus Mechanism
This target hash value is
decided months in advance

124. Consensus Mechanism
The miners variate the nonce value to find an output that falls within the target requirement
Hash value obtained
Target value
Target value
The hash value is accepted
The hash value is rejected
If greater than
If lesser than

125. Consensus Mechanism
A miner transmits across the
world, that he has found a nonce
that satisfies the target
requirement

126. Consensus Mechanism
And thanks to the hashing
algorithms used, this claim can
be easily verified by others

127. That’s a whole lot of work!
What’s a miner’s payoff here?

128. For all his/ her hard work, they
get paid in Bitcoins! Sometimes
they get other forms of
renumeration as well!

129. Blockchain Mining

130. Blockchain Mining
Mining is the process of adding a block to the Blockchain. This miner is the first person who found a
nonce value that fell within the target requirement
For doing this, the miner is
rewarded

131. Blockchain Mining
Mining is the process of adding a block to the Blockchain. This miner is the first person who found a
nonce value that fell within the target requirement
For doing this, the miner is
rewarded
Currently, a miner is paid
12.5 Bitcoins for adding a
block

132. Blockchain Mining
Mining is the process of adding a block to the Blockchain. This miner is the first person who found a
nonce value that fell within the target requirement
For doing this, the miner is
rewarded
Currently, a miner is paid
12.5 Bitcoins for adding a
block
The reward a miner gets
reduces every 4 years

133. Blockchain Mining
The 12.5 Bitcoin reward is justified, as mining is
a very expensive process. It has a heavy toll on
electricity, computing power and other resources

134. Use-Cases

135. Use-Cases
Now, let me show you how we
can incorporate modern identity
verification systems like KYC
with your bank, using
Blockchain!

136. That’s a lot of information! I’m a
Blockchain expert now, right?

137. Not quite yet! There’s a lot more
you need to learn, we’ll get to
that later.
Now let’s recap…

138. Here’s what you’ve learnt…