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BLOCKCHAIN
WORKSHOP
10th March 2017
Visakhapatnam, Andhra Pradesh
Introduction and Today’s Agenda
Session Time
Introduction to Blockchain 1pm – 1:20pm
Brief History of Distributed Systems
...
About ThynkBlynk
◉ Incorporated	in	India	and	US,	ThynkBlynk	is	creating	
ChainTrail.Com,	a	subscription	based	online	servi...
INTRODUCTION TO BLOCKCHAIN
What is Blockchain?
“The	blockchain	is	an	incorruptible	distributed digital	ledger	of	economic	transactions	that	can	be	
p...
Distributed Ledgers, Systems
TRUST = EMPOWERMENT
Credit:	https://www2.deloitte.com/content/dam/Deloitte/au/Images/infograp...
Distributed Ledgers, Systems
TRUST = EMPOWERMENT
Credit:	https://www2.deloitte.com/content/dam/Deloitte/au/Images/infograp...
Distributed Ledgers’ Landscape
Credit:	https://assets.kpmg.com/content/dam/kpmg/pdf/2016/06/kpmg-blockchain-consensus-mech...
Cryptocurrency & Blockchain Distinction
Irreversible Pseudonymous Fast	&	Global Secure Permissionless
BLOCKCHAIN: BASIC CONCEPTS
Cryptography
Cryptography is	the	science	of	using	mathematics	to	encrypt	and	decrypt	data.	
Conventional	
Cryptography
Pub...
Cryptography
Cryptography is	the	science	of	using	mathematics	to	encrypt	and	decrypt	data.	
An	extremely	simple	example	of...
Digital Signatures & One way Hashes
A	major	benefit	of	public	key	cryptography	is	that	it	provides	a	method	for	employing	...
Merkel Tree
A	Merkle	tree	is	a hash	based	data	structure that	is	a	generalization	of	the hash	list.	It	is	
a tree structur...
Consensus Mechanism
In	distributed	ledgers,	a	consensus	mechanism	
is	the	way	in	which	a	majority	(or,	in	some	
mechanisms...
Consensus Mechanisms’ Landscape
Credit:	KPMG	Paper	on	
Consensus	Mechanism
Transactions & Mining
Mining refers	to	the	distributed	computational	review	process	performed	on	each	"block"	of	data	in	a...
BLOCKCHAIN APPLICATION
Smart Contracts
Credit:	http://www.kwm.com/en/au/knowledge/insights/10-things-you-need-to-know-smart-contracts-20160630,	
...
Public Vs Permissioned (Private) Blockchain
Public	blockchains:	a	public	blockchain	is	a	blockchain	that	
anyone	in	the	wo...
Use-Cases: Government
• Blockchain Notarization Services to e-Residents
• Estonian settling and clearing business by Nasda...
Use-Cases: Private Sector
• First Real Property Ownership Transfer Recorded on the
Blockchain with Ubitquity
• ICICI Bank ...
Q & A
Ready to Launch?!
So lets Get Going: Self Starter Exercise
http://www.ibm.com/developerworks/cloud/
library/cl-ibm-blockchain-101-quick-star...
Any questions ?
You can find us at
◉ www.thynkblynk.com
◉ devendark@thynkblynk.com
◉ parag.jain@thynkblynk.com
Thanks!
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ThynkBlynk: Understanding the Blockchain - A workshop for Students

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ThynkBlynk and Fintech Valley, Vizag - Andhra Pradesh, India conducted a workshop for students on 10th March 2017 to demystify Blockchain.

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ThynkBlynk: Understanding the Blockchain - A workshop for Students

  1. 1. BLOCKCHAIN WORKSHOP 10th March 2017 Visakhapatnam, Andhra Pradesh
  2. 2. Introduction and Today’s Agenda Session Time Introduction to Blockchain 1pm – 1:20pm Brief History of Distributed Systems Blockchain & Cryptocurrency – Platform and Use Case Distinction Basic Technical Concepts 1:20pm – 2:30pm Cryptography & Blockchain Digital Signatures Mining Merkel Tree Consensus Mechanisms Blockchain Application 2:30pm – 3:15pm Public Vs Permissioned (Private) Blockchain A few In-Play Use Cases How to Get Started with Blockchain - Ethereum Q & A 3:15pm – 3:45pm Hand Over Self Starter Exercise & Close Session 4pm Parag Jain, Co-Founder & CEO, ThynkBlynk Retail Banker, Payments Expert, BPO Experience, Business P&L Management, International Business Growth, Alumni of London Business School, Lived & Worked Across the Globe Devendar, Co-Founder, ThynkBlynk Banking Technology Leader, ex-CIO & Payments Expert with experience working across the Globe. Has run bank mergers and complex enterprise implementations in a multi-party and cross border environment.
  3. 3. About ThynkBlynk ◉ Incorporated in India and US, ThynkBlynk is creating ChainTrail.Com, a subscription based online service on the Blockchain that enables identity attributes based transactions to be executed Securely, Efficiently and Digitally ◉ Co-Founded by a team of executives with combined international & cross-industry experience of over 60 years with business relationships in over 20 countries, our service is for the Global Marketplace, offering Local Solutions
  4. 4. INTRODUCTION TO BLOCKCHAIN
  5. 5. What is Blockchain? “The blockchain is an incorruptible distributed digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.” Don & Alex Tapscott, authors Blockchain Revolution According to Sunny Ray, Co-founder and President of India's leading bitcoin blockchain company, Unicoin, "blockchain enables two entities that do not know each other to agree that something is true without the need of a third party. IMMUTABLE VERIFIABLE
  6. 6. Distributed Ledgers, Systems TRUST = EMPOWERMENT Credit: https://www2.deloitte.com/content/dam/Deloitte/au/Images/infographics/au-deloitte-technology-bitcoin-blockchain-distributed-ledgers-180416.pdf
  7. 7. Distributed Ledgers, Systems TRUST = EMPOWERMENT Credit: https://www2.deloitte.com/content/dam/Deloitte/au/Images/infographics/au-deloitte-technology-bitcoin-blockchain-distributed-ledgers-180416.pdf
  8. 8. Distributed Ledgers’ Landscape Credit: https://assets.kpmg.com/content/dam/kpmg/pdf/2016/06/kpmg-blockchain-consensus-mechanism.pdf
  9. 9. Cryptocurrency & Blockchain Distinction Irreversible Pseudonymous Fast & Global Secure Permissionless
  10. 10. BLOCKCHAIN: BASIC CONCEPTS
  11. 11. Cryptography Cryptography is the science of using mathematics to encrypt and decrypt data. Conventional Cryptography Public Key Cryptography Credit: ‘The Basics of Cryptography’, Phil Zimmermann Digital Signatures One Way Hash Function
  12. 12. Cryptography Cryptography is the science of using mathematics to encrypt and decrypt data. An extremely simple example of conventional cryptography is a substitution cipher. A substitution cipher substitutes one piece of information for another. In conventional cryptography, also called secret-key or symmetric-key encryption, one key is used both for encryption and decryption. Public key cryptography is an asymmetric scheme that uses a pair of keys for encryption: a public key, which encrypts data, and a corresponding private, or secret key for decryption. You publish your public key to the world while keeping your private key secret. Anyone with a copy of your public key can then encrypt information that only you can read. Even people you have never met. Credit: ‘The Basics of Cryptography’, Phil Zimmermann
  13. 13. Digital Signatures & One way Hashes A major benefit of public key cryptography is that it provides a method for employing digital signatures. Digital signatures enable the recipient of information to verify the authenticity of the information’s origin, and also verify that the information is intact. Thus, public key digital signatures provide authentication and data integrity. A digital signature also provides non-repudiation, which means that it prevents the sender from claiming that he or she did not actually send the information. The system described above has some problems. It is slow, and it produces an enormous volume of data—at least double the size of the original information. An improvement on the above scheme is the addition of a one-way hash function in the process. A one-way hash function takes variable-length input—in this case, a message of any length, even thousands or millions of bits—and produces a fixed-length output; say, 160-bits. The hash function ensures that, if the information is changed in any way—even by just one bit—an entirely different output value is produced. Credit: ‘The Basics of Cryptography’, Phil Zimmermann
  14. 14. Merkel Tree A Merkle tree is a hash based data structure that is a generalization of the hash list. It is a tree structure in which each leaf node is a hash of a block of data, and each non-leaf node is a hash of its children. Merkle trees are used in distributed systems for efficient data verification – Merkel Proofs In the figure alongside, a node can prove that a transaction K is included in the block by producing a merkle path that is only four 32-byte hashes long (128 bytes total). The path consists of the four hashes (noted in blue) HL, HIJ, HMNOP and HABCDEFGH. With those four hashes provided as an authentication path, any node can prove that HK (noted in green in the diagram) is included in the merkle root by computing four additional pair-wise hashes HKL, HIJKL, HIJKLMNOP, and the merkle tree root (outlined in a dotted line in the diagram). Root Hash: Public & Trusted Credit: https://www.weusecoins.com/what-is-a-merkle-tree/, http://www.blockchaintechnologies.com/blockchain-mining
  15. 15. Consensus Mechanism In distributed ledgers, a consensus mechanism is the way in which a majority (or, in some mechanisms, all) of network members agree on the value of a piece of data or a proposed transaction, which then updates the ledger. In other words, a consensus mechanism is a set of rules and procedures that maintains a coherent set of facts among the participating nodes. How consensus mechanisms work Basic parameters that define a consensus mechanism: Decentralized governance: A single central authority cannot provide transaction nality. Quorum structure: Nodes exchange messages in prede ned ways, which may include stages or tiers. Authentication: This process provides means to verify the participants’ identities. Integrity: It enforces the validation of the transaction integrity (e.g., mathematically through cryptography). Nonrepudiation: This provides means to verify that the supposed sender really sent the message. Privacy: It helps ensure that only the intended recipient can read the message. Fault tolerance: The network operates efficiently and quickly, even if some nodes or servers fail or are slow. Performance: It considers throughput, liveness, scalability, and latency Credit: KPMG Paper on Consensus Mechanism
  16. 16. Consensus Mechanisms’ Landscape Credit: KPMG Paper on Consensus Mechanism
  17. 17. Transactions & Mining Mining refers to the distributed computational review process performed on each "block" of data in a "block-chain". This allows for achievement of consensus in an environment where neither party knows or trusts each other. The process is carried out by Miners Credit: http://www.blockchaintechnologies.com/blockchain-mining#sthash.cc3W9Ie1.dpuf, http://www.coindesk.com/information/how-bitcoin-mining-works/ When a block of transactions is created, miners put it through a process. They take the information in the block, and apply a mathematical formula to it, turning it into a Hash. The bitcoin protocol won’t just accept any old hash. It demands that a block’s hash has to look a certain way; it must have a certain number of zeroes at the start. Miners continually change the data they’re using to create a different hash without meddling with transaction data. They do this using another, random piece of data called a ‘nonce’. This is used with the transaction data to create a hash. If the hash doesn’t fit the required format, the nonce is changed, and the whole thing is hashed again.
  18. 18. BLOCKCHAIN APPLICATION
  19. 19. Smart Contracts Credit: http://www.kwm.com/en/au/knowledge/insights/10-things-you-need-to-know-smart-contracts-20160630, http://www.blockchaintechnologies.com/blockchain-smart-contracts A smart contract is an agreement that is fully or partially automated using software to facilitate execution, enforcement and performance underlying that contract. Key Benefits • Contracts become Efficient, Faster and Improve Underlying Performance • An agreement does not need to be completely automated to be a smart contract. • Combined with other technology like Blockchain, smart contracts have transformative potential • It is still early days. Really early days. Smart contracts for the music industry - In this use case, a public blockchain could keep track of ownership rights. These rights & usage conditions could be publicly accessible to all. Furthermore, the transfer of royalty payments could be real time and the smart contract could ensure that each time a payment is generated for a given work, the money would be automatically split according to the set terms, and each party’s account would instantly reflect the additional revenue.
  20. 20. Public Vs Permissioned (Private) Blockchain Public blockchains: a public blockchain is a blockchain that anyone in the world can read, anyone in the world can send transactions to and expect to see them included if they are valid, and anyone in the world can participate in the consensus process Consortium blockchains: a consortium blockchain is a blockchain where the consensus process is controlled by a pre-selected set of nodes; for example, one might imagine a consortium of 15 financial institutions, each of which operates a node and of which 10 must sign every block in order for the block to be valid. Fully private blockchains: a fully private blockchain is a blockchain where write permissions are kept centralized to one organization. Read permissions may be public or restricted to an arbitrary extent. Privacy is a universal human right & data confidentiality standards are well defined laws in most jurisdictions https://blog.ethereum.org/2015/08/07/on-public-and-private-blockchains/
  21. 21. Use-Cases: Government • Blockchain Notarization Services to e-Residents • Estonian settling and clearing business by Nasdaq • Land Registry on Blockchain • UK Gov’t is Trialing the Blockchain for Welfare & Pensions • Identity - Immigration • Australian Securities Exchange (ASX) considering migration to a Blockchain-based settlement system by the end of 2017 • Dubai Wants All Government Documents on Blockchain By 2020
  22. 22. Use-Cases: Private Sector • First Real Property Ownership Transfer Recorded on the Blockchain with Ubitquity • ICICI Bank executes India’s first banking transactions on blockchain in partnership with Emirates NBD • Santander Becomes First U.K. Bank to Introduce Blockchain Technology for International Payments • Everledger: blockchain-based diamond fraud detection • Blockchain for Open Sharing of Academic Proficiency and Progress Records
  23. 23. Q & A
  24. 24. Ready to Launch?!
  25. 25. So lets Get Going: Self Starter Exercise http://www.ibm.com/developerworks/cloud/ library/cl-ibm-blockchain-101-quick-start- guide-for-developers-bluemix-trs/index.html https://dappsforbeginners.w ordpress.com/ 1. Take a few minutes to gather your thoughts about Blockchain and Distributed Systems. 2. How do you believe this emerging technology can create visible impact? List down 3 real-life use cases that you believe are viable in 2 areas: a. Community or Citizen Services b. Business 3. Pick 1 or 2 simple use cases that you will create a PoC for
  26. 26. Any questions ? You can find us at ◉ www.thynkblynk.com ◉ devendark@thynkblynk.com ◉ parag.jain@thynkblynk.com Thanks!

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