Decentralization - The Essence of Blockchain

Fundamentals of Blockchain and how Decentralization is achieved with the help of consensus algorithms. A simulation of a peer-to-peer communication in a blockchain network by creating a small application using Python was also covered.

Topics covered in the workshop were:
-Blockchain and Decentralization.
-Achieving consensus in a decentralized network.
-Decentralization with peer-to-peer (P2P) networking.
-Block synchronization, validation in the P2P network.
-Building a decentralized blockchain application in Python.

More resource used in the talk.
https://github.com/breakingtheblockchain/presentations/tree/master/decentralization

Transcript

1. Decentralization The Essence of Blockchain
2. Agenda • Blockchain and Decentralization • Achieving consensus in a decentralized network • Peer-to-peer networking • Block exchange mechanism • Simulating the blockchain in a decentralized network
3. Decentralization ?
4. Byzantine Generals’ problem
5. Decentralization Problem • Trustless entities • How to believe on single truth? • Bitcoin solution
6. Blockchain Hash value Previous block hash value
7. Blockchain 1234 1234 1235 1235 1237
8. Blockchain
9. Distributed Ledger Technology (DLT) Each node holds a copy of the blockchain Blockchain + Decentralized + Consensus algorithm = DLT
10. Consensus mechanism • Algorithm to reach a global truth • Consensus mechanism solves the byzantine generals’ problem. • Bitcoin’s proof-of-work is the first and well known consensus algorithm.
11. Proof-of-work • Uses hash puzzle to do work • Hash cash proposed in 1997 by Adam Back • Reduce email spam and DOS attacks
12. Hash puzzle Find a hash value which is less than a specified value 0000000000000756af69e2ffbdb930261873cd71
13. Peer-to-peer network Decentralized network is achieved with the peer-to-peer protocol. Every node in the network has equal responsibility.
14. Achieving consensus Each node has to perform a few tasks to achieve the consensus. • Validate each incoming block • Select the longest blockchain • Create a valid block
15. Conflict resolution ba12 ca11 fe12 ba12 ca11 be13 dd31
16. What does it achieve? • Works in a trustless network • Transparency • High reliability
17. Thanks! Contact me: Koshik Raj linkedIn: koshikraj twitter: rajkoshik koshik.raj@gmail.com www.koshik.me