it contains the basics of the blockchain what miners do what is the importance of block and how it works different versions of the blockchain merkle root tree hashing consensus algorithms which are used in the blockchain

1. “Just for a change—But for a Big cause”

2. CONTENTS
• INTRODUCTION
• LITERATURE SURVEY
• WHAT IS A BLOCKCHAIN
• ACTUAL METHOD/PROCESS
• PROPOSED METHOD/PROCESS
• DIFFERENCE FROM SQL DATABASE
• WHAT IS MINING
• WHAT IS IN A BLOCK
• RELATED WORK
• ELEMENTS OF BLOCKCHAIN
• PROPERTIES OF BITCOIN
• PRIVATE AND PUBLIC BLOCKCHAIN
• CONCLUSION
• REFERENCE

3. INTRODUCTION
• Three complementary definitions of blockchain :
 Technically, the blockchain is a backend
database that maintains a distributed ledger
that can be inspected openly
 Business-wise, the blockchain is an exchange
network for moving transactions,value,assets
between peers, without the assistence of
intermediaries
 Legally, speaking the blockchain validates
transactions, replacing previously trusted
entities

4. LITERATURE SURVEY
• White paper published November 2008 by
Satoshi nakamoto
#Bitcoin-a peer to peer electronic cash system
• Working implementation published three
months later as an open source project.

5. It all begun with satoshi nokomoto paper

6. EVOLUTION OF BLOCKCHAIN
• Currency and payments (blockchain 1.0)
• Contracts, property, and all financial market
transactions (blockchain 2.0)
• Government, health, science, literacy,
publishing, economic development, art and
culture (blockchain 3.0)

7. WHAT IS A BLOCKCHAIN :
• Blockchain Bitcoin
• Blockchain is the technology behind bitcoin
• Bitcoin is the digital token and blockchain is the
ledger that keeps track of who owns the digital
tokens
• You cant have bitcoin without blockchain but you
can have blockchain without bitcoin
• It is a revolution bigger than internet !?
• It may ruin banks

8. Contd…
• Blockchains could not be with out internet
• Blockchain is a meta technology because it effects
other technologies, and it is made up of several
technologies itself
• It is compromised of several pieces:
A database
A software application
A number of computers connected each other
Clients to access it
A software environment to develop on it, tools to
monitor it, and other pieces

9. DISADVANTAGES
Extra charge
Extra time
ACTUAL METHOD : EXAMPLE

10. PROPOSED METHOD
• A blockchain is a ledger of facts, replicated across
several computers assembled in a peer-to-peer
network. Facts can be anything from monitory
transactions to content signature
• Members of the networks are anonymous
individuals called nodes
• All communication inside the network takes
advantage of cryptography to securly identify the
sender and receiver
• When a node wants to add a fact to a ledger, a
consensus forms in the network to determine
where this fact should appear in the ledger; this
consensus is called block

11. OPEN LEDGER : CHAIN
DECENTRALIZATION

13. MINERS
B->D = 2 Rs
SYNCHRONIZATION OF TRANSACTIONS

14. HOW BLOCK CHAIN WORKS

15. CONTD…

16. What difference it makes from SQL
database
• Not much, really, and it would also be much
slower than a SQL database
Then what is making us to go towards it…!?
• Corruption resistence and
• Redundancy
Blockchain have this pros and cons, but depending
on how they are implemented, the benefits could
easily minimised
Eg: if you deploy too few nodes the redundancy will
be low

17. DATABASE vs LEDGER

18. ELEMENTS OF BLOCKCHAIN
NODES
MINERS
LEDGER(BLOCK/BLOCKCHAIN)
PROOF OF WORK
NETWORK CONSENSUS
DIFFICULTY LEVEL
DOUBLE SPENDING PROBLEM

19. WHAT IS MINING?
• BITCOIN mining is like a giant lottery, where you
compete with your mining hardware with
everyone on the network to earn bitcoins
• Bitcoin mining secures transactions that are
recorded in bitcoin public ledger, the blockchain
• Mining hardware:
CPU
GPU
FPGA
ASIC
• More miners = reliable and more secure network
• Should I mine..?

20. WHAT IS IN A BLOCK
• A magic number (0XD9B4BEF9) to show it’s a bitcoin block
• A size number to specify how much data is coming next
• Block header
• Some metadata :
 A version number of the block format-4 bytes(always same)
 A link to the previous block that came immediately before it-
32 bytes
 Merkle root of all the transactions in the block-32 bytes
 Timestamp of when the block was created-4 bytes
 Mining difficulty
 Nonce for proof of work-solution to puzzle
• Transaction counter
• All the transactions that were recorded in this block

21. …..
Genesis
block
Version
Previous block hash
Hash Merkle root
Timestamp
Bits Target
Nonce
Transactions
Block header
Payload
80 byte header
Block hash = sha256(header)
But there is a catch…
Variable size
(unconfirmed transactions)
Block 0 Block 1 Block N-1 Block N

22. MERKLE TREE : EXAMPLE

23. CONSENSUS ALGORITHMS
• PROOF OF WORK
• PROOF OF STAKE
• PROOF OF ELAPSED TIME
• BYZANTINE FAULT TOLERANCE
• PROOF OF BURN

24. RELATED WORK - Tweet

25. PROPERTIES OF BITCOIN
• No counterfeiting
“NOBODY” can increase money supply at will
-If you can beat it, it just gets harder!
• Transaction irreversibility
“NOBODY” can undo a transaction
• No double spending
“NOBODY” can spend the same value more than
once

26. TECHNOLOGY : A NETWORK
• INTERNET – Global computer network
• AMAZON – Server based network
• BITCOIN – Peer to peer network

27. PRIVATE vs PUBLIC BLOCKCHAIN
• A public blockchain is open and inter
operable, like the internet and a private
blockchain is closed and limits the people who
are granted access, like an intranet
• To transfer the digital assets between a closed
group of people, want to maintain privacy of
transactions per second, then a private
blockchain is needed

29. REAL EXAMPLE OF DATA STORED IN
BLOCKCHAIN

30. BITCOIN ATM’S
There were 3,661 Bitcoin ATM’s globally as of september 2018

31. CONCLUSION
• The Blockchain will redefine the role of
existing intermediaries(if they accept to
change), while creating new intermediaries,
therefore it will disrupt the traditional
boundaries of value
• Previously it’s called HUNTING but for a
change now it’s called MINING!
• The history is not going to repeat but it
rhymes

32. REFERENCE
• https://bitcoin.org/bitcoin.pdf
• https://www.slideshare.net/IBTSMG/blockcha
in-67620150/102
• https://bitcoin.org/en/faq
• https://money.cnn.com/2018/08/06/technolo
gy/mobile-voting-west-virginia-
voatz/index.html