Introduction to blockchain

1. Introduction to Blockchain
Priyabrata Dash (AKA Priyab Satoshi)
Twitter: twitmyreview
Medium: medium/Crypt-Bytes-Tech

2. Agenda
• What Is Blockchain
• Back to Basics
• Blockchain as Technology
• How Blockchain Works
• Blockchain Use cases
• Application of Blockchain
• Q&A

3. What Is Blockchain
• A unique, public and
transparent distributed ledger
• That stores all transactions
immutably and
• Permits predefined actions on
those transactions
• In a cryptographically secured
environment.

4. Blockchain Brief History

5. Back to Basics -
Decentralized money (analogy)
• Yapis a nation in the South
Pacific, living on a set of
Islands
• Rai stones–Used for
exchange
• circular stone disks that can
be up to 3.5 m in diameter
and weigh up to 4000 Kg!
• Trading stones of this size is
difficult

6. Back to Basics -
Centralized Ledger
• Write down every transaction in a
book called a ledger
• Bookkeeper appointed
• Alice pays Bob 10 lbs of Rai,
• Alice goes to bookkeeper’s
house and announces the
transaction.
• Everything worked well for a while,
but gradually, problems appeared:
• Fee’s, Availability of Bookkeeper,
• Corruption
• Centralization of Power

7. Decentralization and More Trust
“trustless”
• Decided to find a new way
• Every family would maintain its own
ledger!
• Alice pays Bob 10 lbs of Rai,
• Alice announces the new transaction to all
other families.
• Each family would then check their own
ledger
• No a single family had more power than
any other!

8. Centralize or Decentralize?

9. How Blockchain Works –
Block Anatomy

10. How Blockchain Works – Typical Transaction

11. How
Blockchain
Works -
Validation

12. How Blockchain Works - Consensus

13. How Blockchain Works – Smart Contracts

14. Blockchain Use Cases

15. Application
of Blockchain

16. Types of Blockchain
• Public blockchain: Anyone can use it,
send transactions, participate, explore
the blockchain, validate it.
Example: Bitcoin, Ethereum
• Consortium blockchain: Controlled by a
pre-selected set of nodes; for example
consortium of 15 financial institutions,
each operates a node. The right to read
the blockchainmay be public, or
restricted to the participants.
Example:R3
• Private blockchain: Permission
management is kept centralized to one
organization. Read permissions may be
public or restricted to an arbitrary
extent.
Examples:Eris Industries,Multichain

17. Q&A

18. Thank You