A small talk of introduction to blockchain and cryptocurrency

1. Blockchain
And
cryptocurrency

2. What is blockchain?
● Decentralised and distributed database
● Centralised vs Decentralised vs Distributed
● Founded by Satoshi Nakamoto (https://bitcoin.org/bitcoin.pdf)
● “Block” = chunk of information Chain=”information which connects two
blocks”

3. What is a transaction?
● Transaction can be any interaction between user and system, user and
user
● Transaction vary depending upon the system
○ Facebook: like, share, add a friend
○ Uber: book a ride
○ Twitter: Send a tweet
Rohan sends abhay Rs 10 at 5
Rohan sends Kewal Rs 10 at 5:10
Rohan sends Darshan Rs 25 at 5:10

4. Centralised vs Decentralised more...
Centralised are the ones where the
authority lies under one body
Eg: RBI and other banks
Decentralised are the ones the
authority is distributed.
Eg: Bitcoin, ethereum network
Distributed:
● Broadcast
● Check validity
● Broadcast results and vote
● Add the block to blockchain

5. Example transaction
1. Node 1 broadcast a transaction (Bitcoin exchange)
2. All the minors receive the request and has to verify the transaction and
solve a math problem
3. The node which verifies first will broadcast to other minors to agree (51%
of agreement). They all add this to blockchain and minor who does this
first is rewarded with a bitcoin

6. Blockchain in Enterprise
Supply chain management

7. Blockchain in Enterprise
● Shared distributed database
● Companies decide who can participate
● The group writes the rules and which part of process who can validate

8. Smart contracts
● Smart contract is self executing program on the blockchain.
● DAPP: DIstributed applications
○ Eg: Ethereum platform.

9. Examples of Smart contract
Betting system
● Contract is built between parties
● Stakes are set
● On occurrence of a event and
algorithm in the smart contract the
transaction is executed
Eg: AirBnB, Uber etc..

10. 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.
● In bitcoin network a transaction is executed when the sender initiates the transaction. In Ethereum network
developers can write program(smart contract) to decide when and what needs to done on certain conditions
● The ethereum blockchain miners will mine a Ether
● Unlike bitcoin in the Ethereum network we can track all types of assets.