Blockchain Technology | Blockchain Technology Explained | Edureka

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Proof Of Work &
Blockchain Program
What is Blockchain &
Bitcoin?
Blockchain
Technologies
Ethereum & Smart
Contracts
Peer To Peer Networks
& Cryptography
Blockchain
Applications & Use
Cases
Agenda

What is Blockchain & Bitcoin?

What is Blockchain & Bitcoin?
Blockchain Technology
Blockchain is a continuously growing list of records
called blocks linked and secured using cryptography 04
Blockchain came into existence with the introduction of
Bitcoin's whitepaper in October 2008 03
02Blockchain is the implementation of the digital cryptocurrency
Bitcoin
01Blockchain Technology is the latest buzz in
the industry today
31
’08

Bitcoin’s Blockchain
Currently, about 1200
transactions are added
to every block
For every block that is
added, the miner gets
12.5 BTC as reward
A new block is added
every 10 minutes

Blockchain Technologies

Peer to Peer Network
All Blockchains run on
Distributed Peer-to-Peer
Networks

Peer to Peer Network
Ledger
Account Number
1Pos4r9Eesbv8754b…
Balance
19K4ejhJW94U0212… 37
1ZOL9470uier2UMb… 42.67
178errbZ81FePNr30… 1342
1Mr3UNPH8H4U24v… 12.005
563
1JoH83jfos03n2490i… 974.65
… …
Every single person on the network has a copy of the ledger
There is no single centralized original copy

Hash Encryption
All data stored in
Blockchain is encrypted
using Hash Functions
Hello World
Hello World!
hello world!
A591a6d40bf420404a011733cf…
7f83b1657ff1fc53b92dc18148a…
7509e5bda0c762d2bac7f90d75…
Hash Function
Unlike encryption algorithms, Hash functions cannot be decrypted
Bitcoin uses SHA256(SHA256(Block_Header))
Highly secure as minute input changes give completely different output

Proof Of Work
Proof Of Work involves
solving a
computationally
expensive puzzle to add
blocks to the Blockchain
Hash (n-1)
Block Data
Nonce
Hash (n)
Block Data
Nonce
Hash (n+1)
Block Data
Nonce
Block n Block n+1 Block n+2
Bitcoin has miners who
validate have to solve a
complex mathematical
puzzle to add a block to
the blockchain
Miners search for a
specific nonce which
gives the desired hash
which is predetermined

Blockchain Program
Blockchains can be used to perform multiple programs
An example of a program is to store ID cards of all citizens
for authentication during elections
Different blockchains can have different programs in them
Blockchain Program is
used to create and
implement rules in the
Blockchain

Blockchain Program
Blockchain Program is
used to create and
implement rules in the
Blockchain
We can create
conditions as to
when a transfer
has to happen
E.g. Transfer
money to school
on 1st of every
month

Ethereum

Ethereum
Ethereum is an
open-source &
public blockchain
based distributed
computing platform
Currency Issuance
Decentralized Autonomous
Organizations (DAO)
Smart Contracts
Smart Property

Ethereum
Smart Contracts
are the basic
building blocks
of Ethereum
Ethereum also
provides a
cryptocurrency
token called
"ether"

Smart Contracts

Smart Contracts
pragma solidity ^0.4.0;
contract Simple {
function taker(uint _a, uint _b){
// Do something with a and b
} }
Used to create rules in
the Blockchain program
Written in Solidity language
for most Blockchains
A sample smart contract

Smart Contracts Demo

Blockchain Applications

Where is Blockchain being used?
BitcoinStore
Online marketplace that sells a
variety of electronic gadgets

Coingig
Online marketplace that conducts its
transactions solely in Bitcoins where
you can find everything from books
to T-shirts

The Swiss Pharmacy
Provides high-quality medicine and
accepts Bitcoins and ships worldwide

All Things Luxury
Carries a large selection of jewellery,
including rings, necklaces, bracelets,
earrings and cuff links

Virgin Galactic
Richard Branson’s Virgin Galactic
venture began accepting Bitcoins as
payment for their suborbital space
flights

Cheap Air
CheapAir intends to eventually allow
you to book hotels and flights using
Bitcoin via their app

5 Industries Blockchain
Will Disrupt
Supply Chain
Management
Financial
Services
Voting Real
Estate
Music
Streaming

5 Industries Blockchain Will Disrupt
In September 2016,
Barclays carried out
the world’s first
trade transaction
using blockchain
NASDAQ will
soon run
Blockchain
trading
Financial
Services

Will Disrupt
Supply Chain
Management
Financial
Services Voting
Real
Estate
Music
Streaming

Estonia, a small
Baltic nation is the
first to implement
Blockchain based E-
Voting System
Followmyvote is
world’s first open-
source online voting
solution based on
blockchain
Voting

Will Disrupt
Supply Chain
Management
Financial
Services
Voting Real Estate
Music
Streaming

Solves issues of
huge paperwork
and high agent
fees
Using Ubitquity,
anyone can
manage, track, and
transfer land titles
and property deeds
Real
Estate

Music
Streaming
Artists lose up to 86%
of the proceeds from
their music because
of illegal downloading
Mycelia is a
Blockchain based
platform for artists
to sell their work
directly to
customers

Supply
Chain
Management
Middlemen in
supply chains take
time, add costs,
and make
mistakes often
Provenance
facilitates
“transparent and
traceable” trade on
the Blockchain

Session In A Minute
What is Blockchain & Bitcoin? Blockchain Technologies Networks & Cryptography
Proof Of Work & Programs Ethereum & Smart Contracts Blockchain Applications

Blockchain Technology | Blockchain Technology Explained | Edureka

Blockchain Technology | Blockchain Technology Explained | Edureka

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