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

1. BLOCKCHAIN
WORKSHOP
10th March 2017
Visakhapatnam, Andhra Pradesh

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. 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. INTRODUCTION TO BLOCKCHAIN

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. 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. 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. Distributed Ledgers’ Landscape
Credit: https://assets.kpmg.com/content/dam/kpmg/pdf/2016/06/kpmg-blockchain-consensus-mechanism.pdf

9. Cryptocurrency & Blockchain Distinction
Irreversible Pseudonymous Fast & Global Secure Permissionless

10. BLOCKCHAIN: BASIC CONCEPTS

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. 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. 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. 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. 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. Consensus Mechanisms’ Landscape
Credit: KPMG Paper on
Consensus Mechanism

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. BLOCKCHAIN APPLICATION

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. 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. 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. 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. Q & A

24. Ready to Launch?!

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. Any questions ?
You can find us at
◉ www.thynkblynk.com
◉ devendark@thynkblynk.com
◉ parag.jain@thynkblynk.com
Thanks!