Intro to BlockChain

Blockchain basics functioning and live demo using software.

Transcript

1. BlockChain
2. Contents 1. How transaction work in current system( Banking). 2. What is Blockchain? 3. How transaction works in blockchain? 4. How blocks are formed ? 5. Formation of chain. ( block in chain ) 6. Vulnerability 7. Blockchain software demo.
3. What is BlockChain ? What Problem it solves ? Bcoz all we want is to solve problems, and make the world a better place.
4. Transaction in Current system Let’s take a Recap
5. Third Party A B Okay, Sending. I need money
6. So, What’s the Problem ? • We are depending on third parties(here banks) to build trust bw ourselves. • Large amount of service tax on transaction and delay • Single organization/person is maintaining the whole record. • What if they lost all our records ?
7. What if we could still transfer values/money without needing any third parties. Indirectly we are saying, can we maintain our own register??
8. What is BlockChain? ⇒ Blockchain is a technology that is used to exchange/transfer cryptocurrencies (Bitcoin). ⇒ Instead of centralised network, blockchain maintain distributed record sheet (ledger).
9. Common Terminologies in Blockchain : • Miners - Anyone who have the Blockchain software, they mines (create) bitcoins, they validate the transaction. For that they get some reward. • Ledgers (register) - Like the central database of bank, here every miners maintain such a database.
10. Blockchain • To keep track of the amount of Bitcoins everyone on network uses a register, a digital file that keeps track of all Bitcoin transactions. Ledger === register • Method of maintaining our register among ourselves instead of depending on someone else to do it for us. ⇒ blocks in chain === pages in book
11. But, How it works ? ⇒ So, the requirement of this method is we need atleast 3 people. Blockchain network exist because of us, it’s because of people. But how many ? Q). So, you can ask why 3 people ? Ans - 1 Buyer, 1 Seller, 1 Validator. #1 #2 #3 Validators ?? Now, who are they?
12. How Transactions in Blockchain Works? #David #Sandra Everyone in the network has an empty page and listening for any transaction to happen.
13. How Transactions in Blockchain Works? #David #Sandra ⇒ David wants to send Sandra 5 BTC page
14. Image src : medium @micheledaliessi Validation of Transaction ⇒ nodes are the validators which are also called as “miners”. Recap : The activity of running the Bitcoin blockchain software in order to obtain these Bitcoin rewards is called “mining” - very much like mining gold.
15. Transaction Continues Happening….
16. How Blocks are formed in Blockchain ? Page Transaction continues happening Page full !! Time to seal these pages. After sealing of these pages, we call it as block. The machine which seal these “pages” is called as hash function. (Sealing Machine) Sealing machine will provide a unique fingerprint (hash) to each block.
17. Intro to Block What inside a Block ? Each Block has : • Contents - contain the transactions and the miner reward. (currently 12.5 bitcoin) • Header - contain reference to previous block and fingerprint (hash) of data contained in that block. (Signed Block)
18. Formation of Block chain
19. Why are miners working on Blockchain Network?
20. 1. Reward on Validating a transaction. 2. Reward on Solving a Block.
21. TO-DO Contest Questions : 1. Brief the scenario in which blockchain will fail ?
22. Blockchain Demo Software credits : https://github.com/anders94/blockchain-demo
23. Questions ?
24. About me • Gmail : Raj.deeepak@gmail.com • Github : https://github.com/dipakkr • Speakerdeck : https://speakerdeck.com/dipakkr
25. Thank you !!