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Blockchain
Technology
Introduction
by Galin Dinkov
https://www.linkedin.com/in/galindinkov/
Motivation
Refused to understand it at first
Beautiful comprehensive technology
● Immutable
● Distributed
● Autonomous
● Anonymous/Pseudonymous
● Open Source
● Secure
Lot more than cryptocurrency
● Distributed database
● Distributed computing
● Voting
● Autonomous organizations
● Future forecasting (prediction markets)
● Crowd funding
● Public records
● Copyrights
● Car keys
● ...
What is the
Blockchain?
Technology behind the Bitcoin and the
other cryptocurrencies
Chain of chronologically ordered blocks
(transactions)
Distributed Database
Cryptographically secured
● Pseudonymity
● Data integrity
● Transaction authenticity
Genesis
Before Bitcoin
● Libertarianism
● Evolvement of cryptography
● Cypherpunk
● Online payments
● Financial crises
● Hashcash, b-money, Bit Gold
Satoshi
Nakamoto
White Paper
White paper: https://bitcoin.org/bitcoin.pdf
Who is?
Hal Finney
1st Bitcoin Transaction
PGP Employee
Nick Szabo
Bit Gold
Smart Contracts
Wei Dai
b-money
Crypto++
Dorian Nakamoto
Finney’s neighbour
10,000 BTC Pizza
2 pizzas for
$25,000,000
Bitcoin Foundation
Gavin Andresen
Main Bitcoin Core
developer after
Satoshi
● Standardize, protect and promote
the use of cryptographic money
● Modeled on the Linux Foundation
● Funded by for-profit companies
that depend on the bitcoin
technology
Merchant Adoption
Exchanges
● Fiat currency <-> Cryptocurrency
● Mount Gox (Mt. Gox)
● Coinbase / Kraken
● Bitcoin7 / Crypto.bg
List: https://www.cryptocoincharts.info/markets/info
From $0 to $3000
Chart: https://99bitcoins.com/price-chart-history/
Evolvement of blockchain
● Ethereum
● Monero / ZCash
● Private Blockchains
● Hyperledger
● ICOs
How does it
work?
Client Software
● Wallet
○ Full
○ SPV
● Mining
○ Solo
○ Pool
○ Cloud
P2P Network
Blocks
000000000019d6689c085ae165831e934ff763ae46a2a6c172b3f1b60a8ce26f
Consensus algorithms
● Proof of Work
● Proof of Stake
● Proof of Capacity
● Proof of Authority
● Proof of Burn
Mining
Hardware
● CPU
● GPU
● FPGA - field-programmable
gate array
● ASIC - application-specific
integrated circuit
Keys and Addresses
● Private Key - 256bit random number
● Public Key - Generated from the PK using ECC
● Address = RIPEMD160(SHA256(Public Key))
● One can have multiple addresses
14fxjE3qepjaYxiqs5WPtDx5y7vMQP81mW
Wallets
● Hot Wallets - online
● Cold Storage
○ HDD, USB …
○ Paper Wallet
○ Hardware Wallet
● Other
○ Tattoo
○ Memorize
Popular
blockchains
Bitcoin
● The first
● Highest valuation
● Strongest community
● Not really anonymous
● Hard fork from August 2017
● Other cryptocurrencies (altcoins)
Ethereum
● Distributed computer
● Smart contracts
● Turing-complete
● Programming in Solidity
● Easier for development than Bitcoin
● DAO, Tokens, Crowdsales
Vitalik Buterin
Hyperledger
● Open-source cross industry
blockchain technologies
● Linux Foundation
● Funded by IBM, JP Morgan,
Cisco, Intel ...
ICOs
● Initial Coin Offering
● Capital raising by startups
● Whitepaper
● Similar to IPO and crowdfunding
● Scams
ICOs: https://tokenmarket.net/ico-calendar
æternity
Yanislav Malahov
● Bulgarians in the team
● The Godfather of Ethereum ?!?
● ICO for ~$60M
● Similar to Ethereum but offers
improvements
Final
https://www.linkedin.com/in/galindinkov/
by Galin Dinkov

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Blockchain Тechnology - Introduction